The proposal, which positions South Africa as a potential node in a rapidly expanding global AI infrastructure race, has sparked political concern within the metro according to a report by MyBroadband.
“At first glance, the proposal sounds almost too good to be true,” said André Beetge, DA eThekwini executive committee member and Ward 97 councillor, referencing projected capital investment ranging between $3 billion and $10 billion, along with construction and permanent jobs.
But Beetge argues the details remain “conspicuously absent.”
He noted that when a desalination plant was previously proposed near the same site, ward councillors were formally informed and public participation was facilitated. “Yet in this instance, we only became aware of this proposal earlier this week when it appeared on the committee agenda,” he said.
Global AI-related electricity consumption is projected to more than double this decade, placing pressure on grids already strained by decarbonisation targets and industrial demand.
Water usage for cooling, land allocation, and environmental impact have triggered regulatory tightening across the United States, the United Kingdom and parts of the European Union.
A test of infrastructure and governance
Beetge questioned how the municipality can responsibly commit to a project of this magnitude amid unstable electricity supply and water losses exceeding 50%. “How then do we responsibly commit to a project of this magnitude without first stabilising core infrastructure?” he asked.
Globally, successful data centre investments increasingly hinge on local value creation including renewable energy integration, grid upgrades, water recycling, skills transfer and guaranteed local employment participation.
Without these safeguards, critics warn, host cities risk becoming energy-intensive enclaves with limited spillover benefits.
“We do not oppose progress,” Beetge said. “But we do oppose opacity. Investment must be responsible. Development must be sustainable. Governance must be transparent.”
