SA data centre operators push back amid sustainability probe

• The South African Human Rights Commission (SAHRC) is investigating the human rights and environmental impacts of the country's rapidly expanding data centre sector.
• The SAHRC probe focuses on concerns including electricity and water consumption, environmental impact, land use, public participation, and regulatory frameworks.
• Major data centre operators like Equinix and Africa Data Centres are defending their practices, citing investments in renewable energy and water-efficient cooling technologies.
• Equinix reports 100% clean and renewable energy coverage in South Africa and a local water usage effectiveness of 0.1 L/kWh, 95% below the global average.
• Africa Data Centres utilizes a 20-year power purchase agreement for a 12MW solar farm to supply renewable energy to its Cape Town and Johannesburg facilities.

The SAHRC's investigation is comprehensive, addressing critical areas such as electricity demand, water consumption, overall environmental impact, land utilization, public participation in development processes, and the adequacy of existing regulatory frameworks governing digital infrastructure.

The South African Human Rights Commission (SAHRC) has launched a significant probe into the rapidly expanding data centre sector, examining its broad impact on human rights. This inquiry stems from growing concerns that the industry's swift growth may be placing undue strain on the nation's finite electricity and water resources. The SAHRC's investigation is comprehensive, addressing critical areas such as electricity demand, water consumption, overall environmental impact, land utilization, public participation in development processes, and the adequacy of existing regulatory frameworks governing digital infrastructure.

This heightened scrutiny arrives as South Africa solidifies its position as a crucial hub for digital services across the continent. Data centres are foundational to the country's burgeoning digital economy, providing essential support for cloud computing, artificial intelligence (AI) applications, financial services, and various communication platforms. The nation has recently attracted substantial investment in this sector, with major international and regional operators like Equinix, Vantage Data Centres, NTT Data, Africa Data Centres (ADC), and Open Access Data Centres significantly expanding their local footprints to meet accelerating demand for cloud and AI capabilities.

In response to the SAHRC's inquiry and broader environmental concerns, leading data centre operators in South Africa are actively defending their resource consumption practices. They contend that their expansion is not at the expense of responsible electricity and water management, highlighting their initiatives in renewable energy and more stringent resource efficiency. US-headquartered digital infrastructure firm Equinix, for instance, asserts its commitment to science-based climate targets and confirms achieving 100% clean and renewable energy coverage within its South African operations.

Sandile Dube, Managing Director for Equinix South Africa, emphasized the country's strategic importance as Africa's largest economy and a leading digital hub, positioning data centre investment as a driver for economic development, innovation, and competitiveness. Dube also stressed the imperative for responsible digital infrastructure development, which includes careful stewardship of energy, water, and land resources, alongside meaningful community engagement and human rights due diligence across all operations and supply chains. Equinix's local facilities reportedly utilize closed-loop cooling systems, achieving an average water usage effectiveness of 0.1 litres per kilowatt-hour (L/kWh), which is approximately 95% below the global average. Globally, Equinix reported 96% renewable-energy coverage in 2025, marking its eighth consecutive year above 90%. Similarly, Africa Data Centres (ADC), which operates three primary facilities in South Africa, reduces its reliance on the national grid by procuring clean electricity through a 20-year power purchase agreement for a 12MW solar farm, wheeling renewable energy to its Cape Town and Johannesburg sites. Ziaad Suleman, SVP – CEO: SA & Botswana of Cassava Technologies operations for South Africa and Botswana, acknowledged the SAHRC's vital role and affirmed ADC's integration of sustainability and responsible resource use into its facility design and operations, including investments in renewable energy and water-efficient cooling technologies. He also expressed support for evidence-based discussions on expanding digital infrastructure while addressing environmental and community considerations.

The ongoing SAHRC South Africa data centre probe underscores a critical juncture for the nation's digital infrastructure development. While the rapid influx of investment and the expansion of digital services are vital for economic growth and competitiveness, the inquiry highlights the increasing need for these advancements to align with robust environmental and human rights standards. The commission's focus on the adequacy of existing regulatory frameworks suggests that the outcome of this investigation could lead to significant policy adjustments or new compliance obligations for operators.

The concerns around electricity and water scarcity, coupled with the broader digital infrastructure environmental impact ZA, mean that future growth in the sector will likely face enhanced scrutiny. Data centre operators, and those advising them, must therefore closely monitor the SAHRC's findings. The emphasis on responsible growth, as articulated by industry leaders, will likely translate into more stringent requirements for sustainability reporting, resource efficiency, and community engagement, shaping the landscape for digital infrastructure investment and operation in South Africa for years to come.

Lawyers advising data centre operators in South Africa must closely monitor the SAHRC's ongoing inquiry into the sector's environmental and human rights impacts, as it may lead to new regulatory frameworks, compliance obligations, or litigation risks concerning resource consumption and land use. Compliance officers should prepare for potential increased scrutiny and reporting requirements related to sustainability practices.

Source: Original reporting via ITWeb.