South Africa tribunal approves Equinix data centres despite activist objections

By Sharon Kimathi

July 28 (Reuters) - Municipal authorities in South Africa's Cape Town have approved Equinix's EQIX.O proposal to develop two data centres in the city, despite objections from activist groups over the project's water use, electricity demand and environmental impact.

The decision marks a significant step forward for the U.S.-listed company and its planned development in the King Air Industria area, as demand for data-centre infrastructure rises across Africa.

The planned facilities are expected to require about 170 megawatts of power capacity, making the project one of the largest proposed data-centre developments in South Africa.

By comparison, Teraco, Africa's largest data-centre operator, has said it has about 189 MW of critical power capacity across its campuses.

South African grassroots movement Housing Assembly and UK-based technology advocacy group Foxglove, represented by the Legal Resources Centre, opposed the application during tribunal hearings.

The groups argued that insufficient information had been disclosed about the project's environmental footprint and resource requirements.

"We have seen this playbook from U.S. Big Tech companies again and again: turn up in a community, tell them as little as possible about the huge harm the data centre will cause, and leave the people living there to pick up the pieces," said Rosa Curling, co-executive director at Foxglove.

The groups said they were assessing a potential appeal.

An Equinix spokesperson confirmed the company had purchased land in Cape Town but had not yet submitted a site development plan.

Under South Africa's planning system, a site development plan sets out how an approved project will be laid out and operated.

"Should we decide to proceed with any development, we are committed to being fully transparent and will provide detailed information to all relevant stakeholders in a timely manner," the spokesperson said.

"We understand the distinct role we play in the communities where we operate, and early in the planning process we engage with local utilities, government leaders and other stakeholders to listen, understand local priorities and help inform our decisions."

(Editing by Mark Potter)