A recent civic engagement event held at Cape Town's St George's Cathedral brought together concerned citizens, academics, and community leaders to discuss the impact of data centre construction in the city. The event, hosted by civil society alliances including the Housing Assembly and Foxglove, aimed to provide a platform for informed discussion on the issue. With data centres becoming increasingly prevalent in South Africa, attendees sought to shed light on the often opaque process surrounding their development.
Minister of Communications and Digital Technologies Solly Malatsi recently spoke about the need for balanced regulatory frameworks to govern the growth of the data centre industry. In an interview at GovTech 2026, Malatsi stated that the City of Cape Town had acted reasonably in revisiting its initial approval of a data centre project, given concerns raised by residents. He emphasized the importance of adapting policy and regulatory frameworks to accommodate emerging industries, while ensuring that growth is balanced with environmental and social considerations.
Research presented by Prof Muhammad Amir Anwar from the University of Edinburgh revealed that data centres have a limited impact on local employment. According to Anwar's estimates, data centres generate only 0.7 to two jobs per megawatt during construction and 0.1 to 34 operational jobs per megawatt. This has raised concerns among community leaders and residents, who argue that the benefits of data centre construction are not being equitably distributed.
One of the primary concerns raised by civil society during the dialogue was the lack of participation in the planning process. Affected communities reported little to no direct consultation or engagement regarding data centre developments, despite being directly impacted by the projects. The City of Cape Town's reliance on online notices and municipal websites was deemed ineffective in reaching residents, who were consequently unaware of the proposed developments.
The City of Cape Town's approval of rezoning and land use rights before conducting environmental impact assessments and other reviews has also been criticized. Residents and community leaders argue that this approach strips the public of leverage and undermines the participatory planning process. In response, the City has acknowledged the need for specific regulatory guidelines for large data centre developments, which are expected to be drafted through transparent and participatory public consultations.
Civil society groups are calling for full disclosure of water and electricity allocation agreements between municipalities, Eskom, and tech multinationals. They argue that this transparency is essential to ensuring that constitutional rights to water, housing, and a safe environment take precedence over corporate profit. As the demand for data centres continues to grow, South Africans are seeking to have mature conversations about the implications of these projects and the need for balanced growth.
The City of Cape Town is expected to play a significant role in shaping the future of data centre development in South Africa. With data centres set to consume a substantial portion of the city's current electricity supply, residents and community leaders are urging the City to prioritize transparency and participatory planning. As the debate continues, one thing is clear: South Africans are demanding a greater voice in the conversation surrounding data centre growth and its implications for their communities.
Key points
- Data centres in South Africa have a limited impact on local employment, generating only 0.7 to two jobs per megawatt during construction and 0.1 to 34 operational jobs per megawatt.
- The City of Cape Town has acknowledged the need for specific regulatory guidelines for large data centre developments, which are expected to be drafted through transparent and participatory public consultations.
- Civil society groups are calling for full disclosure of water and electricity allocation agreements between municipalities, Eskom, and tech multinationals to ensure that constitutional rights take precedence over corporate profit.
