eThekwini approves principles for data centre, not project

By Thebe Mabanga

The eThekwini Municipality has clarified that it has approved only the principles governing a proposed data centre, and not the project itself.

This follows reports of a proposed $9.8 billion (about R160 billion) investment by the Korea South Power Consortium for a data centre in Amanzimtoti, south of Durban.

The municipality said council had agreed to enter into a Memorandum of Agreement (MoA), which sets out terms of engagement with the prospective investor, but does not constitute project approval.

“The MoA creates a structured framework for engagement between the Municipality and the prospective investor to assess the feasibility of the proposal,” the city said in a statement.

It added that such agreements are standard practice in the early stages of large-scale projects, as they enable information sharing and preliminary assessments.

The city noted that the specific companies that may ultimately undertake the investment have not yet been