The rapid expansion of data centres driven by artificial intelligence poses risks to South Africa's already strained electricity and water supplies. Global forecasts predict a sharp rise in energy demands, with local facilities already consuming significant power. Experts urge greater transparency and resource management to mitigate potential shortages.
Artificial intelligence is fueling a global boom in data centres, which house servers processing vast amounts of digital data for banks, websites, and social media. Worldwide, about 12,000 such facilities currently use 1.5% of global electricity, but the International Energy Agency (IEA) projects this could exceed 4.4% within the next decade.
This growth hits hard in places like Ireland, where data centres consume 21% of metered electricity—a fivefold increase in eight years. In the US, Virginia leads with 25%, and six states surpass 10%. Singapore uses over 7% of its national supply for these centres. AI-specific facilities are scaling up dramatically; conventional ones draw 10-25 megawatts (MW), but AI versions can exceed 100MW. The Citadel in Nevada is designed for 650MW, matching over 40% of Durban's demand, while xAI's Colossus in Tennessee aims for 2,000MW.
The IEA notes that large data centres equate to the power needs of 100,000 households, with the biggest under construction potentially serving two million. In December 2025, Exelon Corporation CEO Calvin Butler warned of impending crises: “It’s like you’re driving your car, the ‘check engine’ light is on... you have to fix it now.” India's capacity has doubled in four years, equaling 6.5 million households' consumption.
In South Africa, recovering from load shedding and water shortages, the picture is murkier. Eskom and municipalities declined to share data centre consumption figures, citing the Protection of Personal Information Act. However, five Teraco centres in Johannesburg alone exceed 130MW—more than small cities like Mbombela or Kimberley.
Legal Resources Centre's Aaron Tifflin highlights hidden costs: “As the country positions itself as a player in the global AI economy, we must ask: at what cost? Technological advancement must go hand-in-hand with transparency, accountability, and responsible stewardship of our natural resources.” Local growth is set to accelerate, raising fears of resource crunches.
