Date: 2026-03-05 06:24:03

Clarity On Proposed Korean AI Data Centre Engagement

ETHEKWINI NEWSFLASH

FOR IMMEDIATE RELEASE

CLARITY ON PROPOSED KOREAN AI DATA CENTRE ENGAGEMENT

EThekwini Municipality confirms that Full Council approved a resolution authorising the City to enter into a Memorandum of Agreement (MOA) with a Korean power consortium to explore the potential development of an AI Data Centre in the south of Durban.

The MOA creates a structured framework for engagement between the Municipality and the prospective investor to assess the feasibility of the proposal. 

Such agreements are standard practice at the early stages of large-scale projects, enabling information exchange and preliminary assessments.

Identity of the Investor

The reference to the “Korea South Power Consortium” reflects a collective of Korean energy and technology entities that have expressed interest in exploring the proposed investment. 

The specific companies that may formally participate in future agreements have not yet been finalised.

Electricity Demand and Supply

No final decisions have been made regarding the electricity requirements of the proposed facility or how electricity may be supplied. 

Any figures currently circulating publicly, including specific megawatt estimates, should not be regarded as confirmed project specifications.

Infrastructure and Municipal Contributions

Council’s approval to enter the MOA does not include approval for any Municipal infrastructure commitments, subsidies, incentives, or financial contributions. 

Should such matters arise at a later stage, they would undergo separate processes in line with Municipal governance requirements and applicable legislation.

Water Requirements

Water demand, sourcing, and associated infrastructure needs have not been determined. 

These matters fall within the scope of technical, environmental, and feasibility assessments that would take place should the engagement progress.

Environmental and Regulatory Processes

Should the engagement progress beyond the exploratory phase, all proposed development activities would be subject to the full suite of legislative and regulatory requirements, including environmental authorisations and water use approvals where applicable.

Transformation and Local Participation

Considerations relating to empowerment, local participation, and wider socio-economic benefits have not yet been defined. 

These elements typically form part of detailed project structuring during later stages, should the project advance.

Scope of Council Approval

It is important to emphasise and clarify that Council’s approval is strictly limited to entering into an MOA for exploratory and feasibility purposes. 

This approval does not constitute:

• Approval of the project itself

• Approval of infrastructure commitments

• Approval of financial contributions

• Confirmation of technical specifications

• Approval of regulatory or statutory authorisations

Any future steps will be informed by feasibility outcomes and will follow all required statutory processes.

ENDS

Issued by eThekwini Municipality’s Marketing and Communications Directorate.