South Africa: Data centers, more than 250 contributions on water and electricity

The Commission is examining the potential effects of these infrastructures on access to water, electricity supply, the environment, local communities, and the transparency of public decisions. The feedback received will inform its assessment and could lead to recommendations for authorities and Parliament.

The debate is gaining momentum because South Africa hosts a dominant share of the continent’s data center capacity. President Cyril Ramaphosa estimated that the country accounts for about 70% of this capacity, driven notably by Johannesburg and Cape Town, where investments related to cloud computing and artificial intelligence are multiplying.

Rights and environmental groups are now calling for a pause on approving new projects until their cumulative impact on resources has been better assessed. However, no general suspension has been decided at this stage: the ongoing process remains a consultation on the economic, social, and environmental consequences of this growth.

Electricity, water, and competition for resources

Electricity consumption is the main point of contention. Large data centers operate continuously and can draw tens or even hundreds of megawatts. An Equinix project in Cape Town, among the most closely watched cases, illustrates the scale of new infrastructure required for digital services and AI.

The South African energy context has nevertheless improved after several years of chronic load shedding. Eskom recently reached 476 days without load shedding and significantly reduced its diesel expenses, a recovery that provides more flexibility to the grid but does not eliminate concerns about the arrival of very large consumers.

Operators in the sector argue that new projects incorporate more renewable energy, more efficient cooling systems, and technologies that limit water consumption. They also contend that South Africa must maintain its digital lead to attract international investment and locally host AI data and services.

This race for infrastructure goes beyond the South African market alone. MTN, for example, has launched Africa Data Hub to strengthen the continent’s digital capacities, in a context where demand for storage, cloud, and intensive computing is rapidly growing.

The next step will depend on the conclusions of the Human Rights Commission. Pretoria’s challenge will be to balance the attractiveness of a strategic sector with measurable guarantees on water access, electricity costs, land use, and informing affected populations.