Don't Listen to the Greenies: Why South Africa Needs Data Centres
Warwick Grey
– April 30, 2026
4 min read

Data centres are where the digital economy becomes physical. Each one combines servers, storage systems, fibre networks, backup power, cooling, monitoring, fire protection, and security so that banks, retailers, hospitals, and ordinary companies can operate online. The cloud is not in the sky. It is computing power and storage provided from somewhere else. Computing power means the ability of computers to do digital work quickly, such as checking a payment, loading a website, analysing data, or retrieving a file. In plain English, it is digital horsepower.
A data centre is a specialised building filled with computers, storage systems, and networking equipment that process, store, and move digital information.
Artificial intelligence, streaming, online gaming, remote work, and cloud computing all push demand for data centres upward. These services need places where information can be processed, stored, secured, and transmitted reliably. Data centres are as important to a modern economy as electricity, tarred roads, and a skilled workforce are.
However, in South Africa, there is a growing movement against the construction of data centres. Some activists claim that data centres will use a disproportionate amount of electricity and water in cities and resultantly are bad for the environment and that we should not have them in South Africa.
But for South Africa’s competitiveness and investment attractiveness, it is vital to have data centres here.
A South African company competing against firms in Europe, America, or Asia cannot afford to run on weak digital infrastructure. The physical distance that information must travel creates latency (the delay the user experiences between a command and a response via a networked system). The further data travels, the slower the system becomes. A few milliseconds may sound trivial, but they accumulate quickly. They affect how fast a payment is processed, how quickly a website loads, how smoothly a video call runs, and how fast an artificial intelligence system returns an answer. In financial markets, tiny delays can affect the order in which trades are executed, putting a South African trader at a disadvantage when competing globally.
Local data centres reduce that handicap. They shorten the path between users and machines, improve resilience, strengthen data sovereignty, and make South Africa more attractive to cloud providers, fibre investors, and technology firms. Data sovereignty means greater local control over where data is stored and which laws govern it.
A poor country does not become rich by refusing the infrastructure of productivity. If data centres require power, build power. If they require better water systems, build better water systems. Data centres should not be seen as a burden, to be housed by other countries. They are one of the machines on which the economy now relies. And South Africa would be silly to refuse to have them in our borders.