{"id":631231,"date":"2026-02-28T15:01:36","date_gmt":"2026-02-28T13:01:36","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=631231"},"modified":"2026-02-28T15:03:11","modified_gmt":"2026-02-28T13:03:11","slug":"korean-company-wants-to-build-a-billion-rand-data-centre-in-popular-south-african-holiday-town","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/cloud-hosting\/631231-korean-company-wants-to-build-a-billion-rand-data-centre-in-popular-south-african-holiday-town.html","title":{"rendered":"Korean company wants to build a billion-rand data centre in popular South African holiday town"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

However, while the proposed investment is very exciting, the Democratic Alliance (DA) in Durban\u2019s metro area have raised concerns about a lack of transparency regarding the deal.<\/p>\n\n\n\n

\u201cAt first glance, the proposal sounds almost too good to be true,\u201d said Andr\u00e9 Beetge, DA eThekwini executive committee member and Ward 97 councillor.<\/p>\n\n\n\n

\u201cA capital investment of between $3 billion (R47.7 billion) and $10 billion (R159 billion). Construction jobs. Permanent employment.\u201d<\/p>\n\n\n\n

Beetge said the proposed investment also promises a global technology footprint for eThekwini, with the Municipality contributing land and infrastructure.<\/p>\n\n\n\n

\u201cBut beyond the headline figures, the details are conspicuously absent,\u201d he said.<\/p>\n\n\n\n

\u201cWhen 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.\u201d<\/p>\n\n\n\n

Beetge explained that for the desalination plant proposal, the intentions were widely published, and public participation was invited and facilitated.<\/p>\n\n\n\n

\u201cThat proposed development \u2014 whose environmental, economic and social impact would arguably pale in comparison to the item before us today \u2014 followed due process,\u201d he said.<\/p>\n\n\n\n

\u201cYet in this instance, we only became aware of this proposal earlier this week when it appeared on the committee agenda of 23 February 2026.\u201d<\/p>\n\n\n\n

Beetge said there was no clarity on who precisely would benefit from the employment opportunities promised by the consortium.<\/p>\n\n\n\n

\u201cWe are aware that many large Asian-owned technology entities historically rely heavily on imported specialist labour, often limiting meaningful local economic participation,\u201d he said.<\/p>\n\n\n\n

\u201cThe report further fails to contextualise that the Korea South Power Consortium has reportedly set out to establish 76 such facilities globally by 2028.\u201d<\/p>\n\n\n\n

Neither does the report tabled before the committee adequately address the energy demand trajectory associated with AI data centres.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

\u201cWe are already battling unstable electricity supply and significant water losses exceeding 50%. Speaker, you have just reprioritised funding away from the Kingsburgh substation upgrade,\u201d he said.<\/p>\n\n\n\n

\u201cHow then do we responsibly commit to a project of this magnitude without first stabilising core infrastructure?\u201d<\/p>\n\n\n\n

They want to build in a protected environmental area<\/h2>\n\n\n\n
\"\"
Andr\u00e9 Beetge (middle). From left to right: KZN Public Works & Infrastructure MEC Martin Meyer, Ethekwini Executive Committee Cllr Andre Beetge and Phoenix ward 52 Cllr Samier Singh at the KZN Annual Report to Citizens event hosted in Phoenix hall.<\/figcaption><\/figure>\n\n\n\n

Beetge said the proposed site for the data centre raises further concerns, as it is located within a D\u2019MOSS-sensitive environmental area and in close proximity to the ocean.<\/p>\n\n\n\n

The Durban Metropolitan Open Space System (D\u2019MOSS) is an initiative that seeks to protect Durban’s biodiversity and associated ecosystem services for future generations.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

These include its impact on the adjacent railway line, impact on neighbouring private properties, environmental mitigation measures, and water consumption requirements.<\/p>\n\n\n\n

\u201cGlobally, jurisdictions such as the United States, the United Kingdom, the European Union and the Netherlands have implemented increasingly strict Energy Efficiency Directives,\u201d said Beetge.<\/p>\n\n\n\n

These nations have also put regulatory frameworks in place to protect national resources amid the expansion of AI infrastructure.<\/p>\n\n\n\n

\u201cWhy is there no similar regulatory framework referenced in this proposal?\u201d he asked.<\/p>\n\n\n\n

\u201cOne is left to question whether Africa is again being viewed as a jurisdiction with comparatively less stringent regulatory oversight \u2014 a convenient destination for energy-intensive infrastructure that may face stricter scrutiny elsewhere.\u201d<\/p>\n\n\n\n

Beetge said his political party does not oppose progress, technology, or investment. \u201cBut we do oppose opacity,\u201d he said.<\/p>\n\n\n\n

\u201cWe cannot support a Memorandum of Agreement where energy and water impacts are undefined, environmental implications are unclear, and local economic participation is not guaranteed.\u201d<\/p>\n\n\n\n

He also noted that public participation has not yet taken place. \u201cInvestment must be responsible. Development must be sustainable. Governance must be transparent.\u201d<\/p>\n\n\n\n

Until there is full transparency, Beetge said the Democratic Alliance will abstain from supporting this initiative.<\/p>\n\n\n\n

This includes a detailed feasibility disclosure, environmental assessment, infrastructure impact analysis and proper public consultation.<\/p>\n","protected":false},"excerpt":{"rendered":"

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.<\/p>\n","protected":false},"author":15,"featured_media":631243,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[103515,103514,96526,101042,103513],"class_list":["post-631231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cloud-hosting","tag-amanzimtoti","tag-andre-beetge","tag-durban-2","tag-ethekwini-metropolitan-municipality","tag-korea-south-power-consortium"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/631231"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/15"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=631231"}],"version-history":[{"count":1,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/631231\/revisions"}],"predecessor-version":[{"id":631234,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/631231\/revisions\/631234"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/631243"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=631231"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=631231"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=631231"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}