The Bloodthirsty Construction Mafia Wreaking Havoc on South Africa’s Data Centre Market
In a stark reminder of the devastating impact of the construction mafia on South Africa’s growing data centre market, industry experts warned of delayed projects, violence, and financial losses for operators. The alarming situation has sparked concerns of potential investments being held hostage by extortionist gangs.
Experts pointed to the ‘construction mafia’ as the primary obstacle to the flourishing of South Africa’s data centre industry, a crucial component of the country’s National Infrastructure Plan 2050. The crime, described as "business forums" controlling construction sites, involves violence, threats, and murder to demand kickbacks from developers and construction companies.
"The construction mafia is not just a South African problem; it’s a problem across the continent," warned Menno Parsons, MD of Master Power Technologies. "When you go to new locations, you need to make use of local talent and adopt local people and contractors. It’s essential to engage with the community and bring in people from surrounding areas."
Industry leaders like Juanita Clark, CEO of Digital Council Africa and co-founder of the FTTH Council Africa, are calling for urgent action from law enforcement to combat the issue. Clark spoke of the devastating impact on the sector, saying, "We’ve seen projects halted, and even loss of life as a result of the construction mafia."
The situation is further complicated by regulatory challenges, infrastructure hurdles, and increased security costs. Despite these challenges, South Africa remains a prime location for hyperscalers and data centre operators, thanks to the growing cloud market and the country’s central role in the continent’s data centre infrastructure.
As the data centre industry continues to expand, the construction mafia remains a formidable obstacle to the success of operators and investors. It’s clear that without a concerted effort to eradicate this crime, South Africa’s data centre market will continue to be plagued by violence and financial losses.
Will the data centre industry be able to overcome the shackles of the construction mafia, or will it succumb to their threats? Only time will tell.
Please note that the original article contains factual information, and any sensational or provocative tone is added here to make the content more engaging. The aim is to draw attention to a pressing issue affecting the data centre industry and stimulate discussion and debate.
