Korea South Power Consortium plans $10 billion AI data center in South Africa 

Korea South Power Consortium has asked the eThekwini Metropolitan Municipality for approval to build a large-scale artificial intelligence data centre in Amanzimtoti, south of Durban. 

The proposal, presented to councillors this month, points to capital investment of up to R159 billion ($10 billion), along with construction work and long-term jobs. Municipal officials have said the city would contribute land and supporting infrastructure.

DA flags unclear investment terms

While the size of the investment has drawn attention, the Democratic Alliance in eThekwini says key details are missing. 

“At first glance, the proposal sounds almost too good to be true,” said André Beetge, a DA executive committee member and Ward 97 councillor. He cited the wide range in projected capital spending — between $3 billion and $10 billion — and the lack of clarity around timelines and firm commitments. 

Beetge said the municipality had previously followed a more open process on projects with smaller footprints, including a proposed desalination plant near the same area. In that case, the plans were published early and public input was invited. 

“Here, councillors only became aware of the data centre proposal when it appeared on the committee agenda,” he said, adding that no public participation has yet taken place.

Jobs, power strain cloud project

The DA has also questioned who would benefit from the promised employment. Beetge said many large technology projects rely heavily on imported specialist labour, which can limit opportunities for local workers. 

He added that the report does not adequately explain the project’s electricity and water needs at a time when the metro is dealing with power instability and water losses of more than 50%.

The council recently shifted funding away from upgrades at the Kingsburgh substation, raising further questions about capacity. 

“How do we commit to a project of this scale without first stabilising basic infrastructure?” Beetge asked. 

Coastal risks raise approval hurdles

The proposed site lies within a sensitive conservation zone under the Durban Metropolitan Open Space System and is close to the coastline.

The DA says there is no detail on construction materials suitable for corrosive coastal conditions, the effect on nearby rail infrastructure and homes, or how water use would be managed. 

Beetge also pointed to tighter energy-efficiency rules now applied in the United States, Europe and the UK as AI facilities expand. “Why is there no comparable framework referenced here?” he asked. 

The DA says it is not opposed to investment or technology, but will not back the proposal until feasibility studies, environmental assessments, infrastructure impact reports and public consultations are completed. Until then, the party plans to abstain from supporting the agreement.