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eThekwini Municipality signs preliminary agreement for 400MW data center development in South Africa

Partnership Data Center announced South Africa Mar 6, 2026
USD3B
Deal Value
400 MW
Capacity

eThekwini Municipality signed a preliminary Memorandum of Agreement with a consortium of Korean energy and technology entities for the potential development of a 400MW data center near the Lovu River in eastern South Africa. The project is estimated to cost between $3 billion and $10 billion, with the agreement focused on exploratory and feasibility purposes. This partnership aims to establish a significant data center presence in a region currently underserved by such infrastructure.

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Deal Analysis

eThekwini Municipality is exploring a massive 400MW data center project in eastern South Africa, partnering with a consortium of Korean energy and tech firms. This preliminary agreement, announced March 6, 2026, sets the stage for feasibility studies on a development potentially worth $3 billion to $10 billion. The proposed Lovu River site could bring much-needed digital infrastructure to a currently underserved region. It's an ambitious move, signaling a major push for data capacity on the continent.
  • 400 MW data center capacity proposed.
  • $3B-$10B estimated project value.
  • Preliminary MOA for feasibility, not a final commitment.
  • Targets an underserved region in eastern South Africa.

Timeline

Announced
Mar 6, 2026
Signed
Closed

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