By Adrian Ephraim
A quiet digital revolution is unfolding in the shadow of Table Mountain. Rows of humming servers, shielded behind biometric access and climate-controlled walls, are steadily transforming Cape Town into one of Africa’s most critical nodes in the global cloud infrastructure boom.
Cape Town data centre surge drives global interest
From the Brackenfell hyperscale campus of Teraco to Africa Data Centres’ expanding CPT1 site in Elfindale, the Mother City is fast becoming a magnet for data centre investment, both local and global.
Amazon Web Services and Microsoft have deepened their stakes, while Google, through its Equiano subsea cable, has reduced latency and increased access, placing Cape Town on the radar of multinationals hungry for African bandwidth.
“Across the continent, data centres are being established not just for cutting-edge AI experimentation but to serve immediate, community-based needs like powering local economies, enabling digital inclusion, and bridging the persistent divide between urban and rural access to technology,” says Ben Selier, Vice President, Secure Power for Anglophone Africa at Schneider Electric.
Data centre infrastructure under pressure
But as investment pours in and server farms rise, a more complex narrative is emerging – one that stretches far beyond the data halls.
The digital engine of economic growth
Data centres are often seen as mere back-end utilities – out of sight, out of mind. But in truth, they form the invisible backbone of the modern economy. Every e-commerce transaction, bank transfer, and AI query runs through these digital nerve centres.
The impact on Cape Town’s business ecosystem is already being felt. With increased local capacity, South African companies can now access faster, cheaper, and more secure cloud computing infrastructure. They no longer need to route through Europe or North America, which changes the game.
The ripple effects are far-reaching. Financial services, health tech, logistics, and even agriculture startups benefit from lower latency and regulatory compliance with local data residency laws. The arrival of hyperscalers also elevates Cape Town’s global competitiveness, drawing in international partnerships and investment.
Infrastructure under pressure
Yet, the surge is not without friction. Power, the lifeblood of any data centre, is also South Africa’s Achilles’ heel.
Data centre energy and efficiency challenges
Data centres account for about 1% of the world’s total energy consumption, according to the International Energy Agency. With the rapid growth of AI, edge computing, and 5G networks, this figure is expected to rise. Cooling systems alone can consume 30% – 40% of a data centre’s energy, making them an essential area for improvement.
A recent MyBroadband report warned that unless South Africa urgently resolves its grid instability, the data centre industry could face multi-billion-rand losses.
Cape Town’s relative grid stability has made it an attractive location for these facilities. But the city’s infrastructure, electricity, water, and even fibre, will need significant upgrades to keep up with demand.
Data centres can use as much electricity as a small suburb. Without long-term energy planning and a green power transition, this growth could become unsustainable.
Encouragingly, many operators are embracing efficiency: Teraco’s CT2 site is built to world-class environmental standards, targeting low Power Usage Effectiveness (PUE), AI and water-saving technologies. But scaling green infrastructure at the pace of digital demand remains a major challenge.
Data centre workforce skills and training
While machines may power the cloud, it’s people who will make or break the sector’s promise.
In recent months, Amazon and Microsoft have launched aggressive hiring drives in South Africa.
However, a looming skills gap threatens to slow momentum. Without deliberate training and placement programmes, South Africa risks becoming a mere consumption market for cloud services, without growing the local capacity to run and innovate within them.
Industry leaders and educational institutions are taking note. Graduate programmes, internships, and certification partnerships are on the rise, aiming to ensure that the digital economy is both inclusive and future-proof.
