A data center could be built in eThekwini Municipality, located in eastern South Africa.

The city confirmed last Thursday that it signed a preliminary Memorandum of Agreement with a consortium of Korean energy and technology entities for a data center potentially located near the Lovu River and south of Ocean View Road.

But the council of eThekwini Municipality emphasized that the memorandum was strictly for “exploratory and feasibility purposes” and did not constitute approval of the project or its infrastructure and financial commitments, as mentioned in a press release.

Although reports about the campus’ potential capacity have emerged – iAfrica reported that a briefing document about the data center mentioned that it could offer 400MW capacity – the council says that no final decisions about electricity supply have been made.

It added that “any figures currently circulating publicly, including specific megawatt estimates, should not be regarded as confirmed project specifications.”

The city also estimates the data center could cost between $3 billion and $10bn.

Details about the South Korean energy and technology entities were also not disclosed.

Although there were those in opposition to the signing of the memorandum, the city has stated that “any future steps will be informed by feasibility outcomes and will follow all required statutory processes.”

eThekwini Municipality is located on South Africa’s eastern coast, and it includes the city of Durban.

Most of South Africa’s data centers are located around Johannesburg and Cape Town. The country boasts the largest data center market in Africa by capacity and quantity of data centers, according to the Africa Data Center Association.