South Africa’s eThekwini Municipality is preparing to welcome a billion-dollar data center campus project in eManzimtoti. The municipal is looking to collaborate with South Korean-based Korea South Power consortium for the project. The total cost to facilitate the development of the facility is expected to cost between $3 billion and $10 billion. However, the cost is not set in stone due to its contingency to various factors such as the size of the facility.

The technology partners chosen for advanced operations is also in consideration. As part of the partnership, the municipality will provide the necessary land and infrastructure. On the other hand, the consortium will cover the costs of construction and operational aspects of the data center.

Thembo Ntuli, chairperson of the Economic Development and Planning Committee, presented findings to the eThekwini Executive Committee (Exco) earlier last week. In the presentation, he highlighted the rapid digital transformation of the global economy. Moreover, he emphasized the significance of data and advanced information systems as key drivers of economic growth and social development. Other data center projects across Africa includes the Oracle IXAfrica Cloud Infrastructure Region in Nairobi, Kenya. 

Outlook on the eThekwini Data Center Campus

While the proposed data center campus in eManzimtoti is very exciting, there seems to be challenges brewing. For instance, the Democratic Alliance (DA) in Durban’s metro area have raised concerns about a lack of transparency regarding the deal. “At first glance, the proposal sounds almost too good to be true,” said André Beetge, DA eThekwini executive committee member and Ward 97 councillor. “A capital investment of between $3 billion (R47.7 billion) and $10 billion (R159 billion). Construction jobs. Permanent employment.”

Beetge said the proposed investment also promises a global technology footprint for eThekwini. However, he noted that beyond the headline figures, the details are conspicuously absent.  “…we only became aware of this proposal earlier this week when it appeared on the committee agenda of 23 February 2026.” “The report further fails to contextualise that the Korea South Power Consortium has reportedly set out to establish 76 such facilities globally by 2028,” he added.

Moreover, he noted the report tabled before the committee adequately address the energy demand trajectory associated with AI data centers. South Africa is already battling unstable electricity supply and significant water losses exceeding 50%. The main question arising is does the nation responsibly commit to a project of such magnitude without first stabilizing core infrastructure.

Project Factsheet:

• Name: eThekwini Data Center Campus
• Location: eManzimtoti, within eThekwini Municipality, South Africa

Estimated Investment

• Projected Cost: Between $3 billion and $10 billion (R47.7 billion to R159 billion).
• Final cost subject to change depending on facility size, technical configuration, and selected technology partners.

Partnership Structure

• eThekwini Municipality:
  • Provision of land
  • Supporting infrastructure

• Korea South Power Consortium:
  • Construction financing
  • Operational management
  • Technical deployment

Project Rationale

• Positioned as part of global digital transformation trends.
• Intended to support advanced data infrastructure and AI-driven systems.
• Promoted as a potential catalyst for economic growth, job creation, and global technology positioning.

Governance & Political Context

• The Democratic Alliance (DA) in Durban’s metro has raised transparency concerns.
• DA representative Andre Beetge questioned the lack of detailed disclosures and infrastructure readiness.

Key Concerns

• Limited public detail on contractual and operational frameworks.
• South Africa’s ongoing electricity instability.
• Water losses exceeding 50%.
• Energy demand implications of AI-scale data centers.

Project Status

• Proposal tabled before committee (23 February 2026).
• Under political and public scrutiny.
• No confirmed final investment decision yet