Power Guzzlers: Inside Cape Town’s deal turning golf fairways into a giant data hub

Cape Town has unveiled a controversial plan to repurpose the former King David Golf Club grounds into a major data hub, sparking debate over resource usage and urban development. The transformation involves converting once-thriving golf fairways into a high-capacity data center operated by Equinix, a global leader in digital infrastructure. The project, which received approval from the Municipal Planning Tribunal (MPT) on 14 July, marks a pivotal shift in how the city manages both its green spaces and its energy demands. The golf course, originally established in 1956, served as a recreational space for the Jewish community in the Greater Tygerberg region. Over time, the club's membership dwindled, leading to its closure in the mid-2010s. In response, the club signed a 99-year land lease with Atterbury Property and Old Mutual Properties, setting the stage for a large-scale redevelopment. The project aims to create a logistics gateway just 2 kilometers from Cape Town International Airport’s freight terminal, positioning the site as a strategic hub for international trade and digital connectivity. The proposed data center, part of Phase 4 of the redevelopment, requires a significant overhaul of the existing land use. Under Case ID 1500156580, the developer, Planning Partners, submitted an application to the MPT for land-use rights to establish a hyperscale data center. The proposal faced opposition from the Housing Assembly and the UK-based non-profit Foxglove, who were legally represented by the Legal Resources Centre (LRC). Despite these objections, the MPT approved the application by a 4:1 majority, underscoring the city’s commitment to advancing its digital infrastructure ambitions. Central to the project is a complex financial arrangement involving the City of Cape Town, the developer, and Equinix. The deal includes a land-swap agreement between the City and the developer, authorized by Mayor Geordin Hill-Lewis through a Mayoral Committee round-robin process on 25 May. The City transferred a small 280m² property zoned Mixed Use 1 (MU1), located on Pilatus Street, to the developer for a nominal R100 (excluding VAT) or “nil compensation.” In return, the developer gifted a significantly larger parcel, Erf 180452, measuring 2,962m², to the City. This parcel was transferred as a Utility Zoned property, intended to facilitate the construction of a massive 240MVA electrical switching station. The 240MVA switching station plays a crucial role in supporting the new data centers. Of this capacity, 160MVA will power Equinix’s two data centers, while the remaining 80MVA will be integrated directly into the City’s primary electrical network. This arrangement allows the City to enhance its 132kV network in the area, strengthening its energy infrastructure. The developer also contributed approximately R33-million in shared network charges to secure the 160MVA allocation for the data centers. The project highlights the tension between economic growth and environmental sustainability. Critics argue that golf courses, despite their aesthetic appeal, consume vast amounts of water, up to three million liters per day, which could support the needs of tens of thousands of residents during severe drought conditions. By contrast, data centers, though energy-intensive, have been criticized for their carbon footprint and reliance on non-renewable resources. However, proponents of the project emphasize the potential economic benefits, including job creation and increased tax revenue, as well as the modernization of Cape Town’s infrastructure. As the project moves forward, the city faces mounting scrutiny over its approach to land use, water conservation, and energy management. The outcome of this development will likely shape future discussions on sustainable urban planning and the balance between technological advancement and ecological responsibility.