Korean company wants to build a billion-rand data centre in popular South African holiday town
Korea South Power Consortium has approached the eThekwini Metropolitan Municipality for approval to build an AI data centre in Amanzimtoti, promising up to R159 billion in capital investment.
However, while the proposed investment is very exciting, 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, with the Municipality contributing land and infrastructure.
“But beyond the headline figures, the details are conspicuously absent,” he said.
“When there was a discussion around the establishment of a desalination plant within a few hundred metres of the site currently under consideration, the Ward Councillor was formally informed.”
Beetge explained that for the desalination plant proposal, the intentions were widely published, and public participation was invited and facilitated.
“That proposed development — whose environmental, economic and social impact would arguably pale in comparison to the item before us today — followed due process,” he said.
“Yet in this instance, we only became aware of this proposal earlier this week when it appeared on the committee agenda of 23 February 2026.”
Beetge said there was no clarity on who precisely would benefit from the employment opportunities promised by the consortium.
“We are aware that many large Asian-owned technology entities historically rely heavily on imported specialist labour, often limiting meaningful local economic participation,” he said.
“The report further fails to contextualise that the Korea South Power Consortium has reportedly set out to establish 76 such facilities globally by 2028.”
Neither does the report tabled before the committee adequately address the energy demand trajectory associated with AI data centres.
Beetge said this was projected to escalate over the next few years, with global AI-related power consumption rising from approximately 415 terawatt-hours in 2024 to an estimated 945 terawatt-hours by 2030.
“We are already battling unstable electricity supply and significant water losses exceeding 50%. Speaker, you have just reprioritised funding away from the Kingsburgh substation upgrade,” he said.
“How then do we responsibly commit to a project of this magnitude without first stabilising core infrastructure?”
They want to build in a protected environmental area
Beetge said the proposed site for the data centre raises further concerns, as it is located within a D’MOSS-sensitive environmental area and in close proximity to the ocean.
The Durban Metropolitan Open Space System (D’MOSS) is an initiative that seeks to protect Durban’s biodiversity and associated ecosystem services for future generations.
According to the metro, the spatial layer of interconnecting open spaces in public, private, and traditional authority ownership is currently 94,000 hectares in extent.
In this regard, Beetge said there was no clarity on what building materials suitable for corrosive coastal conditions the data centre would use, or its broader impact.
These include its impact on the adjacent railway line, impact on neighbouring private properties, environmental mitigation measures, and water consumption requirements.
“Globally, jurisdictions such as the United States, the United Kingdom, the European Union and the Netherlands have implemented increasingly strict Energy Efficiency Directives,” said Beetge.
These nations have also put regulatory frameworks in place to protect national resources amid the expansion of AI infrastructure.
“Why is there no similar regulatory framework referenced in this proposal?” he asked.
“One is left to question whether Africa is again being viewed as a jurisdiction with comparatively less stringent regulatory oversight — a convenient destination for energy-intensive infrastructure that may face stricter scrutiny elsewhere.”
Beetge said his political party does not oppose progress, technology, or investment. “But we do oppose opacity,” he said.
“We cannot support a Memorandum of Agreement where energy and water impacts are undefined, environmental implications are unclear, and local economic participation is not guaranteed.”
He also noted that public participation has not yet taken place. “Investment must be responsible. Development must be sustainable. Governance must be transparent.”
Until there is full transparency, Beetge said the Democratic Alliance will abstain from supporting this initiative.
This includes a detailed feasibility disclosure, environmental assessment, infrastructure impact analysis and proper public consultation.
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