{"id":8545,"date":"2026-11-04T10:26:00","date_gmt":"2026-11-04T09:26:00","guid":{"rendered":"https:\/\/openafricantribune.com\/?p=8545"},"modified":"2026-10-17T00:47:19","modified_gmt":"2026-10-16T23:47:19","slug":"africas-data-centre-boom-who-pays-for-the-power-water-and-land","status":"publish","type":"post","link":"https:\/\/openafricantribune.com\/fr\/2026\/11\/04\/africas-data-centre-boom-who-pays-for-the-power-water-and-land\/","title":{"rendered":"Africa\u2019s Data Centre Boom: Who Pays for the Power, Water and Land?"},"content":{"rendered":"

Africa\u2019s digital economy is being built in places most people rarely see. Behind the banking app that processes a payment, the streaming service that loads a film and the cloud platform that stores a company\u2019s files, there are buildings filled with servers running around the clock. These facilities require electricity, cooling, fibre connections, backup systems and land, while some cooling systems also consume substantial quantities of water.<\/p>\n\n\n\n

The African Data Centre Association (ADCA) estimates that the continent had 360 megawatts (MW) of active data centre capacity in 2026, with another 238MW under construction and 656MW planned. Yet, its 2026 report says Africa accounts for only about 0.6% of global data centre capacity, despite having roughly a fifth of the world\u2019s population.<\/p>\n\n\n\n

The report identifies power availability as a major constraint on the sector. Limited local hosting capacity continues to affect latency and the continent\u2019s readiness for artificial intelligence workloads.<\/p>\n\n\n\n

South Africa sits at the centre of this expansion, accounting for roughly 70% of Africa\u2019s data centre capacity, according to President Cyril Ramaphosa. Johannesburg and Cape Town have attracted cloud providers and international technology companies because of their telecommunications infrastructure, submarine cable connections and established technology markets.<\/p>\n\n\n\n

As other African countries seek to expand their own capacity, the development of data centres is placing greater attention on the infrastructure required to operate them. The questions include how facilities secure electricity and water, who pays for new connections and supporting infrastructure, and what information is available to communities and regulators.<\/p>\n\n\n\n

The demand comes from several directions.<\/h3>\n\n\n\n

Banks and fintech companies use computing capacity for payments and financial services. Telecommunications companies require facilities to route and store traffic, while governments and businesses are moving more services and operations online. Streaming, e-commerce, and digital media also depend on infrastructure capable of handling large volumes of data.<\/p>\n\n\n\n

Artificial intelligence is adding to demand for computing capacity. Companies developing and deploying AI services require facilities that can support intensive workloads and connect reliably to customers and networks.<\/p>\n\n\n\n

Nigeria is seeking to expand its domestic capacity. In August 2026, the Federal Government launched its National Digital Cloud Policy, which identifies cloud and data centre infrastructure as part of its strategy to attract investment and develop digital services. The government said it wanted to mobilise $250 million in private investment within the first year and $750 million within two years.<\/p>\n\n\n\n

Lagos State in Nigeria is also planning a significant expansion. TechCabal reported that the state government says Lagos has nearly three-quarters of Nigeria\u2019s commercial data centre capacity and wants to increase capacity to more than 250MW by 2030, with approximately 146MW of additional projects in the pipeline.<\/p>\n\n\n\n

Kenya has previously pursued data centre development linked to geothermal energy. In May 2024, the Kenyan government announced a proposed $1 billion project, with an initial 100MW facility planned before expansion. In May 2026, President William Ruto said the project had stalled because the country lacked sufficient power capacity to support it.<\/p>\n\n\n\n

Who pays?<\/p>\n\n\n\n

Servers cannot simply be switched off when the grid becomes unstable. Digital infrastructure expert Oluwatomisin Agbaje said operators need reliable electricity and layers of \u201cbackup infrastructure, including batteries, generators and uninterruptible power systems.\u201d<\/p>\n\n\n\n

Equinix, for example, announced a $160 million data centre investment in Johannesburg, South Africa, in December 2022. On August 13, 2026, the company announced that it was expanding the facility from its initial 4MW phase towards 24MW as demand grows.<\/p>\n\n\n\n

In Cape Town, Equinix\u2019s proposed facilities have been the subject of a much larger public dispute. Reuters reported that the two proposed data centres were expected to require up to 160MW of power, while later reporting put the combined proposed capacity at about 170MW.<\/p>\n\n\n\n

Operators are responding by looking for locations where electricity can be secured, signing long-term power purchase agreements and increasingly allowing energy availability to influence where new facilities are built.<\/p>\n\n\n\n

The division of electricity-related costs depends on the electricity arrangement, utility rules and project-specific agreements. The operator or developer can therefore pay substantial costs directly.<\/p>\n\n\n\n

A data centre can pay for its connection while still relying on infrastructure whose costs are recovered through electricity tariffs, utility investment and public infrastructure. Eskom\u2019s wheeling framework, for example, charges generators and load customers for use of the electricity network, while connection charges recover costs associated with establishing the connection.<\/p>\n\n\n\n

According to infrastructure expert Agbaje, \u201cthis is an important clarity because a private company can finance a facility without necessarily financing every piece of infrastructure that makes the facility possible.\u201d<\/p>\n\n\n\n

\u201cThere is no single amount of water that every data centre consumes, as usage depends heavily on the cooling technology, climate, size of the facility and how the cooling system is operated.\u201d<\/p>\n\n\n\n

The US Department of Energy defines Water Usage Effectiveness (WUE) as the amount of site water used in relation to the energy consumed by IT equipment. Uptime Institute similarly warns against applying a single water-use figure to every data centre because cooling systems and local conditions vary considerably.<\/p>\n\n\n\n

For instance, traditional evaporative cooling systems can consume substantial water because heat is removed through evaporation. Dry cooling and some hybrid systems can dramatically reduce or almost eliminate operational cooling-water consumption.<\/p>\n\n\n\n

Uptime Institute\u2019s 2026 analysis found that well-designed dry and adiabatic systems can achieve energy performance comparable with evaporative systems while using significantly less water. The organisation argues that WUE should be considered alongside the more familiar power usage effectiveness metric when facilities are designed and assessed.<\/p>\n\n\n\n

A large facility with an efficient, waterless cooling system could therefore use less water than a smaller facility relying on evaporative cooling. At the same time, the fact that water consumption can be reduced does not mean every proposed facility will automatically use little water.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Cape Town concern<\/h3>\n\n\n\n

South Africa has already experienced severe water shortages, including the 2017\u20132018 drought that brought Cape Town close to the so-called Day Zero crisis. Against that history, civil society groups have questioned why some major data centre applications have not disclosed detailed water requirements before planning decisions are made.<\/p>\n\n\n\n

In an August 2026 opinion article published by Daily Maverick, representatives of Housing Assembly, Foxglove, Open Secrets, Research + Action and the Planetary AI Collective criticised the approval process for new data centre facilities. They argued that information about the projects\u2019 water and electricity requirements was insufficient.<\/p>\n\n\n\n

On September 4, 2026, the South African Human Rights Commission (SAHRC) told the Associated Press that it had received more than 250 submissions following its call for public input in May 2026. The submissions raised concerns about water demand, electricity use, land, infrastructure and the availability of information about the industry\u2019s impact.<\/p>\n\n\n\n

BusinessDay reported that the proposed Equinix facilities could require more than 4.4 billion litres of water annually. However, that figure is an estimate based on assumed water-use rates and projected data centre capacity, rather than a measurement of actual consumption. The facilities\u2019 eventual water demand would depend on factors including their cooling systems, operating capacity and water sources.<\/p>\n\n\n\n

Data centre operators are exploring ways to reduce the pressure their facilities place on electricity and water systems. Some are securing renewable energy through power purchase agreements, while others are adopting alternative cooling technologies and water-efficiency measures.<\/p>\n\n\n\n

These approaches can reduce reliance on conventional power sources or lower freshwater consumption, depending on the facility’s design, location and operating conditions.<\/p>\n\n\n\n

Location is part of technology.<\/h3>\n\n\n\n

Planning documents show that operators seek proximity to fibre routes and internet exchanges. They want reliable electricity and sufficient capacity for future expansion. They need roads, security, telecommunications infrastructure and access to industrial land. Water availability can also influence the viability of a site.<\/p>\n\n\n\n

South Africa’s concentration of submarine cable connections has helped make it a major digital gateway. Equinix pointed to the country’s extensive submarine cable network when announcing its Johannesburg investment.<\/p>\n\n\n\n

The same logic is evident in Lagos, Nigeria. Rack Centre’s Lagos campus, for example, connects to more than 70 carriers and internet service providers and has access to multiple submarine cables and fibre routes. Its facility also hosts the Internet Exchange Point of Nigeria (IXPN), allowing domestic internet traffic to be exchanged locally rather than travelling unnecessarily outside the country.<\/p>\n\n\n\n

Telecom Analysis reported that the more facilities cluster around strong fibre, power and connectivity infrastructure, the more attractive the location can become to cloud providers and businesses.<\/p>\n\n\n\n

The costs are spread across several players<\/h3>\n\n\n\n

According to Data Centre News, the data centre developer normally finances the building, servers, cooling systems and much of the site’s internal infrastructure. Depending on the electricity arrangement, it can also pay for connection works and other charges associated with securing power.<\/p>\n\n\n\n

Planning documents also suggest that telecommunications providers build and maintain fibre networks, while data centre operators often pay for connectivity and interconnection services.<\/p>\n\n\n\n

Public authorities may bear costs associated with roads, planning administration, water systems and other infrastructure serving the wider area, although the precise division depends on the project and the relevant government or utility arrangements.<\/p>\n\n\n\n

Eskom’s connection rules illustrate the split. A customer requiring a new or upgraded connection can pay a connection charge and, depending on the project, contribute towards upstream infrastructure. At the same time, the wider electricity network remains part of the regulated utility system.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

What does the law require?<\/h3>\n\n\n\n

Clyde & Co. reported that South Africa does not have a single piece of legislation governing every physical aspect of a data centre. Instead, different parts of the project can fall under different regulatory systems.<\/p>\n\n\n\n

Environmental approval is governed in part by the National Environmental Management Act (NEMA) and the Environmental Impact Assessment Regulations. The national government publishes the applicable regulations and listing notices that determine when listed activities require environmental authorisation.<\/p>\n\n\n\n

Depending on the location, design and infrastructure requirements, a data centre project may also involve municipal planning and land-use approvals, electricity connection requirements, water-related regulation and building standards.<\/p>\n\n\n\n

An existing environmental authorisation for an Amazon data centre expansion in Brackenfell illustrates how this works in practice. The Western Cape environmental authority approved the project under NEMA and the EIA Regulations, subject to conditions attached to the authorisation.<\/p>\n\n\n\n

In July, Reuters reported that the proposed Equinix development had been approved despite objections concerning environmental risks, water use and electricity demand.<\/p>\n\n\n\n

The Financial Times reported in September that the proposed 122,500-square-metre development was facing another challenge over the adequacy of the planning assessment.<\/p>\n\n\n\n

Investment and employment<\/h3>\n\n\n\n

Equinix’s Johannesburg entry alone involved a $160 million investment. The Financial Times reported that investment in South Africa’s data centre sector could exceed $5 billion by 2031.<\/p>\n\n\n\n

Nigeria’s new cloud policy is built around a similar expectation of private investment and digital-service exports, while Lagos is planning a major increase in capacity.<\/p>\n\n\n\n

There are also skilled jobs in engineering, electrical systems, cooling, security, networking, construction, facilities management and data centre operations. Current recruitment by operators such as Teraco includes electrical and mechanical technicians, engineers, project managers, facilities managers, security specialists and network operations roles.<\/p>\n\n\n\n

But the employment case requires more careful measurement. According to Net Zero Insights, data centres are highly capital-intensive facilities. The number of permanent jobs created by a data centre project may be relatively small compared with the value of its capital investment. In May 2026, President Cyril Ramaphosa said capital-intensive sectors, including data centres, were projected to generate between 13 and 248 jobs per R1 billion invested. The figures were presented as part of South Africa\u2019s broader investment projections and do not establish the employment outcome of every data centre development.<\/p>\n\n\n\n

Data centre investment can support employment beyond the facilities themselves. An economic impact report commissioned by Amazon Web Services estimated that its South African investment would support an annual average of more than 5,700 full-time equivalent jobs at local vendors across construction, telecommunications, electricity generation, maintenance and data centre operations. The estimate covers AWS\u2019s wider supply chain rather than permanent jobs inside the data centres.<\/p>\n\n\n\n

Africa\u2019s data-centre capacity is expanding, with new projects requiring electricity, water, land, connectivity and supporting infrastructure. The costs and responsibilities vary according to the project, utility arrangements and applicable regulations. In South Africa, the debate over proposed facilities in Cape Town has focused on the disclosure of resource requirements and the approval process.<\/p>","protected":false},"excerpt":{"rendered":"

Africa\u2019s digital economy is being built in places most people rarely see. Behind the banking app that processes a payment, the streaming service that loads a film and the cloud platform that stores a company\u2019s files, there are buildings filled with servers running around the clock. These facilities require electricity, cooling, fibre connections, backup systems […]<\/p>\n","protected":false},"author":117,"featured_media":8671,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"saved_in_kubio":false,"footnotes":""},"categories":[19,15,30,27,28],"tags":[],"class_list":["post-8545","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-environment","category-governance","category-infrastructure","category-society"],"_links":{"self":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8545","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/users\/117"}],"replies":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/comments?post=8545"}],"version-history":[{"count":2,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8545\/revisions"}],"predecessor-version":[{"id":8696,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/posts\/8545\/revisions\/8696"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media\/8671"}],"wp:attachment":[{"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/media?parent=8545"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/categories?post=8545"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/openafricantribune.com\/fr\/wp-json\/wp\/v2\/tags?post=8545"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}