The Korea South Power Consortium intends to develop an Artificial Intelligence (AI) Data Centre in Amanzimtoti, south of Durban.
Image: Pixabay
THE eThekwini Municipality is set to partner with the Korea South Power Consortium to develop an Artificial Intelligence (AI) Data Centre in Amanzimtoti.
The project is expected to cost between $3 million and $10 million, depending on the size and the technology partners selected for the advanced operations.
As part of the agreement, the municipality will provide the necessary land and infrastructure for the development, while the consortium will cover the costs associated with the construction and operation of the facility.
The municipality could enter into a memorandum of agreement with the consortium, subject to council approval on Thursday, February 26.
Thembo Ntuli, the chairperson of the Economic Development and Planning Committee, presented a report to the eThekwini Executive Committee (Exco) on Tuesday. He highlighted the rapid digital transformation occurring in the global economy, stating, “It is imperative that the municipality proactively position itself within the AI economy by supporting an enabling digital infrastructure initiative.”
Ntuli further noted that this initiative aligns with the presidential launch of the inclusive smart cities framework, positioning the municipality as an attractive destination for high-value investment in the ICT and innovation sectors.
“A development of this nature would complement and strengthen existing local smart city initiatives, including traffic optimisation, transport analytics, energy management, and data-driven municipal planning,” he added.
The site designated for the AI Data Centre is currently an underutilised open space, with plans for it to become operational during the 2027/28 financial year. Ntuli expressed optimism about the project, stating, “The investment is expected to stimulate economic growth and create employment opportunities. Skills development forms a critical component of the initiative.”
The anticipated economic and skills impact includes:
Andre Beetge, a DA eThekwini Exco member and Ward 97 councillor, cautioned against the municipality committing to any concrete plans without proper public consultation. Despite his concerns, Beetge welcomed the prospect of much-needed investment and job creation.
“Although not directly linked to the long-term development planning of a proposed motor industry park and the extensive development earmarked for areas inland of the N2, stretching from the R603 southwards towards Umgababa, the site under discussion is located in proximity and could potentially complement and enhance both initiatives,” Beetge explained.
In response to several probing questions posed by Beetge at the Exco, the eThekwini Municipality’s Legal Department assured councillors that they are only seeking approval to initiate a process.
“The department stated that this process would remain subject to comprehensive public participation, consultation with key stakeholders, and the necessary approvals from relevant internal departments responsible for zoning, planning, water, sanitation, electricity, and traffic management,” Beetge stated.
Beetge, who has previously faced criticism from officials for allegedly prioritising Amanzimtoti as the city's focus, adopted a stance of cautious optimism. He noted that significant progress and development, which are frequently seen as being centred in the north, are now at least under consideration for the south.
However, these prospects remain contingent on obtaining environmental and other necessary regulatory approvals.