Cape Town Prepares For Data Centre Boom With Projects Set To Transform Energy Demand

Four major projects in the pipeline are expected to require a combined 580MW of electricity — equivalent to just over 34% of the City of Cape Town’s current peak demand of 1,676MW.

The scale of these developments marks a significant shift from the city’s existing data-centre footprint, where around 10 facilities currently operate with comparatively modest cumulative demand. These figures highlight the rapid expansion of hyperscale data infrastructure across the city.

The new wave of investment includes a proposed 360MW facility by the Cavaleros Group, reportedly linked to a global technology player. Teraco is planning a further 60MW expansion, while Equinix intends to develop two new facilities with a combined peak demand of 160MW.

Together, these projects represent a substantial expansion of digital infrastructure, raising questions about the capacity of existing bulk services to accommodate rapid, energy-intensive growth.

Planning and approval of such developments fall under the City’s municipal framework, with the City of Cape Town responsible for assessing rezoning applications, infrastructure capacity and public-participation processes.

Rezoning scrutiny rises

However, the scale and concentration of these developments are beginning to test existing planning systems, particularly where large-scale industrial users intersect with residential and environmental priorities.

A rezoning application for Equinix’s proposed sites near Cape Town International Airport has already drawn formal objections from civil-society groups, reflecting growing scrutiny of high-consumption developments.

Global infrastructure shift

Beyond local governance concerns, the broader global context is also becoming increasingly relevant.

According to the International Energy Agency, data centres are among the fastest-growing sources of electricity demand worldwide, driven by cloud computing, artificial intelligence and digital storage expansion.

This places Cape Town’s developments within a wider international trend where digital infrastructure growth is beginning to reshape energy planning and urban-development priorities.

Data centres require near-continuous power, supported by extensive backup systems such as diesel generators and uninterruptible power-supply units. While these systems are typically used for emergencies, their scale reflects the critical need for uninterrupted operations.

Water demand is also under increasing scrutiny, particularly for cooling systems, with municipalities encouraging the use of alternative sources such as treated effluent to reduce pressure on potable supplies.

As Cape Town positions itself as a key digital infrastructure hub, the data-centre boom underscores a growing tension between investment-led growth and the long-term sustainability of urban-infrastructure systems.