In Cape Town, South Africa, activists are raising concerns over the expansion of hyperscale data centres amid worries about water and power consumption in an area already facing resource scarcity. The development of new facilities near the Barcelona informal settlement, where many residents lack reliable access to water and sanitation, has sparked opposition from civil society groups urging a halt to construction until regulatory frameworks are established.

The location near the city’s international airport has recently been rezoned to accommodate new data centre infrastructure. The land was acquired by Equinix, a US-based company operating around 280 data centres globally. While the company’s managing director, Sandile Dube, stated there were no immediate plans to develop the site, he emphasized that any future projects would follow processes that consider the concerns of local communities.

The rezoning appeal was heard earlier this month, with a non-binding recommendation expected within 90 days. Activists, including members of the Housing Assembly (HA) and international non-profit Foxglove, have challenged the city’s decision, arguing that the introduction of large-scale data centres in water-stressed areas could exacerbate existing inequalities. Kenneth Matlawe, an HA activist and former resident of Barcelona, highlighted how developments must benefit the local community, noting the direct impact on water and sanitation policy and socio-economic conditions.

South Africa currently hosts over 60 data centres—the highest number on the African continent—and the sector is experiencing rapid growth driven largely by increasing demand from artificial intelligence applications. The government has promoted these investments as part of its strategy to position the country as “Africa’s digital gateway.” Cape Town alone has approximately a dozen data centres, with licenses granted for five more.

Despite the economic incentives, the expansion has encountered pushback from environmental and community groups. Extinction Rebellion and Housing Assembly submitted a petition in September calling on the Cape Town mayor to impose a moratorium on new data centres until clear, enforceable regulations are implemented. Legal Resources Centre attorney Saadiyah Kadwa, representing the activists, stressed the need for legal clarity and proper oversight amid the sector’s rapid growth.

Supporters of data centre development argue the projects can stimulate economic growth and technological advancement. However, opponents caution that without adequate controls, the high demands for electricity and water could strain already limited resources in vulnerable communities. The outcome of the rezoning appeal and subsequent regulatory measures will be closely watched by stakeholders on both sides of the issue.