One of the most significant developments today is the rapid growth of data centers and other artificial intelligence-related infrastructure. This is true of Africa, too, where demand for digital services is accelerating. South Africa, in particular, has emerged as one of the continent’s leading destinations for data center investment because of its connectivity, market size, and strategic position within the regional economy.

For cities such as Tshwane, the administrative capital of South Africa, this presents a significant opportunity. Digital infrastructure has the potential to support innovation, attract investment, increase competitiveness, and create new opportunities, including jobs, across the economy. This is the reason so many cities around the world are clamoring for data centers.

However, there is a reality that is often overlooked in the global conversation around AI infrastructure. Data centers may support the digital economy, but they rely on very physical infrastructure: electricity networks, water systems, roads, and municipal services.

The growth of AI-related infrastructure presents cities the challenge of balancing national economic priorities with local service-delivery obligations.”