As the role of digital infrastructure becomes increasingly important in supporting South Africa’s economic growth, data centres have become critical in shaping this landscape, serving customers in multiple industries such as financial services, construction, manufacturing and logistics.

In addition to this, data centres also enable digital services such as e-commerce and online banking, thereby becoming fundamental to daily operations, Nasdaq-listed digital infrastructure company Equinix South Africa MD Sandile Dube said during a media event on August 11.

As Johannesburg continues to grow in terms of interconnectivity, Dube emphasised the importance of leveraging digital infrastructure to encourage more foreign investments and to enable greater accessibility and digital inclusion.

“In a country like South Africa, there's this debate about the lack of digital infrastructure; there’s this debate about a good number of people that do not have access to digital infrastructure and therefore there's this digital divide that exists in our country. Data centres, together with connectivity, play quite a critical role in bridging the digital divide.

“As we know now today, where so much of our lives depends on digital infrastructure, data centres are at the heart of enabling the services that we that we enjoy today,” he said.

Additionally, Dube explained that, as data is increasingly being leveraged for business decisions, more investments are being made in subsea infrastructure and in digital infrastructure.

Hence, he argued for the responsible expansion of data centres.

“It should never be a trade-off between a responsible data centre expansion versus economic growth. We need both in a responsible manner to really make the contribution to the growth of our economy,” Dube told Engineering News.

He said there is a “misnomer” about the use of natural resources by data centres, particularly with regard to energy and water, noting that the company endeavours to power its data centres with renewables in the long run and that the company uses a closed loop water system for its JN1 data centre in Johannesburg.

AI IMPLICATIONS

Speaking to Engineering News, Dube noted that data centres have become pivotal to the evolution of technologies, such as advancing AI.

“In South Africa, we're seeing a growing trend of AI deployment, which is something that we welcome. We obviously welcome the efficiencies that it brings. However, without a data centre, that experience might not be possible”.

Amid their growing importance, Dube argued that there is a need for better education and awareness about the benefits and sustainability of data centres.

He acknowledged that there are varying opinions in public discourse about data centres and the services provisioned by them.

He reiterated that, while data centres house AI infrastructure, their use extends across multiple sectors and for varying purposes.

He noted that the South African Human Rights Commission (SAHRC) launched an inquiry earlier this year to assess the human rights implications of the rapid expansion of data centres and digital infrastructure in South Africa.

As previously reported by Engineering News, the SAHRC is undertaking a high-level stakeholder engagement to determine the human rights implications of the rapid expansion of data centres and digital infrastructure in South Africa.

“South Africa has experienced significant growth in the establishment and expansion of data centres, cloud infrastructure and related digital systems. While these developments may support economic growth, digital transformation and AI readiness, they also raise important human rights, environmental, governance and public-interest considerations,” the commission says on its website.

Considering this, Dube said the inquiry provides a good opportunity to increase education and encourage discussion about the role of data centres.

EXPANSION PLANS

Equinix, as a digital infrastructure provider, operates in three regions – the Americas; Europe, Middle East and Africa; and Asia Pacific – with over 280 data centres globally.

The company first entered the African market four years ago through an acquisition in West Africa of a data centre and subsea cable business, enabling the company to expand its footprint in Nigeria, Ghana and Côte d'Ivoire.

In South Africa, Equinix opted to build a greenfield business, the JN1 data centre in Johannesburg, as the company’s flagship site in the country.

Dube explained that the initial phase of 4 MW has been completed, with plans to expand to 24 MW.

He noted that the company is also assessing the market in terms of scaling its business across South Africa where it makes sense.

“Our growth plans are predominantly driven by our customer demands, not only domestic customers but also international customers that really look for our services in very specific markets,” Dube said.