New data centres to consume 1/3 of Cape Town’s electricity

by | May 19, 2026

Cape Town data centres, Cape Town electricity demand, South Africa technology industry, AI infrastructure South Africa, cloud computing Cape Town, Cape Town tech hub, data centre expansion, South Africa digital economy, electricity grid pressure, Cape Town technology investment
Cape Town’s planned data centre expansion could boost technology but also increase pressure on electricity supply and wild spaces.

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Cape Town is preparing for a major increase in data centre development, with four new facilities planned across the city adding to its existing 10 data centres. Together, the projects are expected to require 580 MW of electricity, equal to about 34% of Cape Town’s current power supply. The rapid growth shows how demand for cloud computing, artificial intelligence and digital services is driving major infrastructure investment in South Africa.

Building more data centres is not all positive and there are negative trade offs. The large energy needs of the new facilities are raising concerns about pressure on the electricity grid. Data centres operate around the clock and require huge amounts of power to run servers and cooling systems.

There are also concerns about the possible impact on Cape Town’s wild spaces, often called the lungs of the city. Other questions are being raised about who will really benefit from these developments. Will it help the middle class, possibly the most important group in the city, or will the benefits mainly go to people brought into Cape Town to run the data centres or even lead to a greater concentration of wealth among a tiny group of oligarchs?

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