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

The preliminary Memorandum of Agreement for a 400MW data center development near South Africa's Lovu River signals a substantial infrastructure play in the region. A Korean energy and technology consortium will explore this $3-10 billion project, indicating a significant foreign direct investment interest in South African digital capacity. This proposed development, announced on 2026-03-06, targets a massive power requirement, suggesting a hyperscale facility designed to serve regional and potentially broader African data demands. The exploration phase allows for detailed feasibility studies, particularly concerning the energy infrastructure needed to support 400MW in KwaZulu-Natal. This partnership structure allows eThekwini Municipality to attract significant capital and expertise for a project that would otherwise be challenging to finance domestically. eThekwini Municipality, responsible for developing infrastructure for Durban and surrounding areas in KwaZulu-Natal, stands to gain substantial long-term economic and technological benefits from this proposed data center. As a metropolitan municipality focused on essential services, securing a $3-10 billion investment for a 400MW facility near the Lovu River directly advances its mandate for regional development. This partnership with a Korean energy and technology consortium allows eThekwini to leverage international expertise and capital to establish a major digital hub. The project's scale positions South Africa for increased data traffic and cloud services, potentially solidifying its role as a leading digital gateway on the African continent. This preliminary agreement, announced on 2026-03-06, sets a foundation for future infrastructure growth within the municipality's jurisdiction.