South Africa’s data centre boom gets push from government
Minister of Communications and Digital Technologies, Solly Malatsi, said that South Africa has the most data centres on the continent, and that existing facilities plan to expand their investments.
Responding to Parliamentary questions from DA MP Tsholofelo Bodlani, Malatsi revealed that his department and the Department of Trade were helping to drive growth in the data centre space.
“South Africa currently has more data centres than any country on the continent, and existing data centres have indicated their intentions to expand their existing investments,” Malatsi said.
“The Department of Communications and Digital Technologies developed the National Data and Cloud Policy to create policy certainty required to assist multinationals wishing to invest in data centres.”
The Minister explained that the policy was co-developed with industry players, resulting in its full endorsement by relevant stakeholders after Cabinet approval.
Malatsi said the Department of Trade, Industry, and Competition was responsible for providing incentives to encourage investment by both local and international companies.
“The Department of Communications’ role is limited to creating an appropriate regulatory environment in this regard,” the Minister said.
Regarding measures initiated to ensure that local economies benefit from data centre investments, Malatsi said his department has collaborative relationships with companies on skill development.
“This is mainly done through, though not limited to, Equity Equivalent Investment Programmes (EEIPs),” Malatsi said.
The Minister said it is important that his department creates strong working relationships with local governments to assist municipalities that host data centres.
“The Department appreciates and respects the difference in jurisdictional mandate between national and local government,” he said.
“Of equal importance is the need to create strong working relationships between different spheres of government, especially where assistance can be provided by one to the other.”
He added that this was also important, where existing service delivery structures and resources could be shared.
“Such interactions can also help alleviate unnecessary delays that could have a negative impact on investment,” Malatsi said.
South Africa building its own cloud infrastructure — Ramaphosa
In July 2026, President Cyril Ramaphosa confirmed that South Africa was investing in its own cloud infrastructure to reduce its reliance on global giants in the sector.
While he welcomed the billions invested by players like Google, Microsoft, and Amazon, he emphasised that South Africa must build its own cloud capabilities.
The President said these companies had invested well over R35.8 billion into the South African cloud and data centre space.
Ramaphosa said sovereignty wasn’t measured by geographic borders, but rather by a nation’s ability to secure data, develop its own capabilities, and exercise control over its technology.
He also highlighted the risks of allowing sensitive public and private data to be held by private companies outside of South Africa’s borders.
“That is why government is investing in its own cloud infrastructure through institutions like the Council for Scientific and Industrial Research,” Ramaphosa stated.
The President added that South Africa’s regulatory and policy environment must align with innovation and safety, and learn from other nations.
“We must learn from other countries where vast amounts of sensitive public and private data have been held by private firms and outside national jurisdictions,” Ramaphosa said.
South Africa’s plans to develop its own cloud systems date back to 2022, when former communications minister Khumbudzo Ntshavheni announced the State Digital Infrastructure Company.
Her announcement came after Cabinet approved a spectrum policy amendment on 10 March 2022, removing the requirement to license a wireless national wholesale open-access network (WOAN).
However, the amendment was not an abandonment of South Africa’s WOAN ambitions, despite a similar model failing in Mexico. Instead, the SDIC would also fulfil that role.
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