A wave of hyperscale data centres is being planned for South Africa. What will these massive facilities mean for our water security, electricity supply, climate commitments and local employment?
A workshop organised by the Legal Resources Centre, Open Secrets and the Housing Association explored the implications of these developments and raised serious questions about their costs to communities and the environment.
What is a hyperscale data centre?
A hyperscale data centre is a massive facility, typically covering more than 10,000 square metres — roughly the size of a shopping mall with 50 shops. It can require more than 100 megawatts (MW) of electricity, equivalent to the electricity needs of approximately 65,000 households.
Water: A scarce resource under pressure
South Africa is a water-scarce country, and climate change is intensifying water stress. The impact of data centres depends partly on their cooling technology. Evaporative cooling can consume substantial quantities of water, while closed-loop systems, immersion cooling and dry-air cooling can reduce water use, although some alternatives require more electricity. The water footprint of electricity generation must also be considered, particularly where coal-fired power is involved.
The central concern is transparency. The full water demands of proposed developments, and the trade-offs involved in meeting them, are not being disclosed in a form that allows communities to assess the likely impacts.
Energy and emissions: Who gets priority?
Eskom is marketing its coal-based electricity surplus to developers, positioning data centres as major new customers. Even where developers generate their own renewable energy, there are potential community impacts associated with new infrastructure, as well as the need for reliable backup power. Heavy reliance on diesel generators could worsen local air pollution.
Internationally, the rapid expansion of data centres has raised concerns about upward pressure on household electricity prices. South Africa must consider these risks in a country where more than 10 million households experience energy poverty.
The projected electricity demands are substantial: proposed data centre developments could consume around 35% of Cape Town’s current electricity supply, while proposed facilities in Durban could use around 25% of the city’s supply.
Meanwhile, two proposed Equinix hyperscale data centres in Cape Town received an initial green light despite concerns that detailed information on water use, energy demand and emissions had not been made available.
This raises a fundamental question: why should energy-intensive private developments receive access to scarce resources when so many households still struggle to access affordable, reliable electricity?
Employment: Promise versus reality
At the Google Cloud Summit in July 2026, President Cyril Ramaphosa cited a Google estimate that investment in data centres could reach R1.7 trillion and generate 315,000 jobs by 2030. This is a very misleading statistic that has been misquoted as it refers to Google’s cloud region and its wider economic effects; it does not establish that all data centres planned for South Africa will collectively generate the same return.
However, the distinction between temporary construction jobs and permanent employment is crucial. Data centres require workers during construction, but once operational, they are highly automated and employ relatively few people.
Using comparisons with projects in the United States and United Kingdom, the proposed R7 billion Equinix development is estimated to create approximately 176 operational jobs, some requiring highly specialised skills.
The headline investment and job-creation figures therefore need closer scrutiny. How many jobs will be permanent? How many will go to local residents? And do the long-term employment benefits justify the demands placed on South Africa’s water and electricity supplies?
Who benefits — and who pays the price?
South Africa faces growing water stress, an electricity crisis and deep inequality. Against this backdrop, the expansion of hyperscale data centres raises urgent questions about whose interests are being prioritised.
Communities need transparent, independently assessable information about water consumption, electricity demand, emissions, backup power and long-term employment before these developments proceed.
We cannot afford to ignore the costs while celebrating the investment figures. South Africa must ask whether hyperscale data centres serve the public interest — or whether communities will be left paying the price through scarcer water, pressure on electricity supplies, increased emissions and fewer permanent jobs than promised.
Perhaps the strongest question for South Africa is this: are we building digital infrastructure that serves our people, or are we being asked to sacrifice our scarce resources to serve the interests of powerful technology companies?
