Data Centers Boost South African Economy

Why this is here: Actom currently employs approximately 8,000 people and aims to maximize local content in its products, reaching up to 100% in some product lines.

Kovilan Naicker of Hitachi Energy explains that growing data centers in South Africa require significant upgrades to existing power substations or the construction of new ones. These Tier 4 facilities, demanding 99.995% uptime, need utility-scale substations like the two 132kV cables serving the Cape Town Film Studios, a location for the One Piece anime adaptation.

Actom, a full-service firm and major Eskom supplier, is expanding production of battery energy storage and electrical machines. CEO Mervyn Naidoo views this boom as a chance to build an African-led manufacturing base with up to 100% local content, employing roughly 8,000 people.

However, Naidoo notes a challenge in education, as fewer students pursue advanced math, impacting the pipeline of future engineers and technicians. While Eskom has transparent long-term transmission plans, grid readiness varies by municipality—Cape Town, for example, is directing data center projects to other areas. The industry’s growth continues to depend on a skilled workforce and consistent infrastructure development.