Africa Data Center Market Landscape 2025-2030

The Africa data center market by investments is expected to grow at a CAGR of 11.76% from 2024 to 2030.

AFRICA DATA CENTER MARKET KEY TRENDS

Government Support for Data Center Development Will Drive Africa Data Center Market Growth

• African governments are focusing on improving digital infrastructure in the region by supporting digitalization and offering tax incentives. The Free Trade Zones (FTZs) and Special Economic Zones (SEZs) are being created across various countries in Africa, which will encourage the use of innovative technologies, boosting investments in data centers and the overall progress in technologies in the forecast period.
• In September 2024, the government of Morocco launched the Digital Morocco 2030 plan with an investment of around USD 1.1 billion to improve online services, create more tech jobs, and make Morocco one of the top 50 digital countries by 2030.
• In addition, the policies and regulations on the local storage of sensitive data will boost the digital economy in several countries within Africa. Most of the data is currently stored in offshore data centers. For example, according to the Protection of Personal Information Act (POPIA), South Africa requires that personal data be collected, stored, processed, and shared in a lawful, transparent, and secure manner, ensuring individuals have control over their data.

Expansion of Submarine Cable and Inland Connectivity

• Africa is one of the key regions for undersea cable landing stations, enhancing global connectivity. The investments in the development of submarine cables in the market have increased significantly over the past few years. South Africa hosts major submarine cables, followed by Nigeria and Kenya.
• For instance, in August 2024, Telecom Namibia launched a cable landing station in Swakopmund, connecting to Google’s Equiano subsea cable. This partnership helps boost internet capacity with a fast, low-latency link between Africa and Europe, improving connectivity in the region.

Growing Smart City Developments Will Drive the Demand for Advanced Technologies in the Market

• As smart city development is increasing significantly, there will be a growing demand for advanced technologies like 5G, IoT, and AI to improve internet speed and data flow. This increase in connectivity is likely to drive the Africa data center market. As smart city projects expand, more investors are expected to enter the data center market and support infrastructure development.
• In August 2024, Kenya’s Konza Technopolis made progress in smart city development, supported by public, private, and international investments. The project aims to promote a digital and sustainable economy and boost economic growth, contributing over 2% to Kenya’s GDP.

Rising Artificial Intelligence

• Africa accounts for around 2.5% of the global AI market. Meanwhile, the Africa data center market is advancing with innovative designs to support AI workloads, driven by operators like Africa Data Centres, IXAfrica, Rack Centre, Equinix, and Digital Realty.
• In November 2024, Teraco (Digital Realty) initiated the construction of its JB7 data center with around 40 MW of IT load capacity on full build. The facility is planned to be equipped with liquid-to-air and liquid-to-liquid cooling designs that support AI deployments.
• In June 2024, Kenya’s Ministry of ICT and Digital Economy collaborated to launch a National AI Strategy to drive AI innovation and establish ethical governance.

SEGMENTATION INSIGHTS

• The Africa data center market, particularly in terms of IT infrastructure, is primarily witnessing the use of switches with up to 100 GbE ports. As the development of hyperscale data centers expands across the region, the demand for switches with ports exceeding 100 GbE is projected to rise significantly. Additionally, with the growing demand for well-developed infrastructure, the adoption of flash storage devices and blade servers is expected to increase in the forecast period in Africa.
• In the upcoming years, sustainability practices are expected to encourage the use of generators powered by eco-friendly fuels like hydrotreated vegetable oils in the Africa data center market. This shift will increase demand for UPS systems that use lithium-ion batteries and other energy-efficient options.
• As enterprises across various industries are embracing artificial intelligence, data center operators are investing significantly to develop AI-ready data center facilities to respond to the growing demands for AI workloads across the region. To manage the heat produced by servers in AI data centers, traditional cooling techniques are insufficient. Therefore, data center facilities will be equipped with liquid cooling techniques to support AI workloads.

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Segmentation by Cooling Systems

• CRAC & CRAH Units
• Chiller Units
• Cooling Towers, Condensers, and Dry Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

• Core & Shell Development
• Installation & Commissioning Services
• Engineering & Building Design
• Fire Detection & Suppression
• Physical Security
• DCIM

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

GEOGRAPHICAL ANALYSIS

• Several countries in the African data center market are experiencing significant growth, driven by a combination of technology advancements, increased digitalization, and government support.
• Johannesburg and Cape Town are the main hubs for development in South Africa data center. Additionally, other areas like Centurion, Durban, and Port Elizabeth are also seeing significant growth in data center development.
• The Kenyan government offers tax incentives for investments in special economic zones, including around 10% corporate tax exemption for the first ten years, and over 15% exemption after the ten years.
• Nigeria is emerging as one of Africa’s fastest-growing markets after South Africa, with increasing demand for data centers expected in the upcoming years. Nigeria has strong connectivity as it consists of around seven cables connecting the country to other African nations and one upcoming cable is currently being deployed.
• The data center market in Egypt is emerging as one of the key players in the Africa data center market, driven by its close proximity to Europe, advancing digitalization, availability of industrial land and affordable land and electricity prices, and enhanced fiber connectivity.
• Other country markets, including Ethiopia, Morocco, Ghana, Algeria, Cameroon, Angola, Uganda, Namibia, Zambia, Senegal, Rwanda, Mozambique, Botswana, and others are also witnessing significant data center investments. The demand is expected to surge across these nations, driving significant growth in regional data center capacity in the upcoming years.
• The Moroccan government has various programs to encourage investment, including the Hassan II fund, the Industrial and Investment Development Fund (FDII), Casablanca Finance City, and Industrial Acceleration Zones.

Segmentation by Geography

• Africa
• South Africa
• Kenya
• Nigeria
• Egypt
• Other African Countries

AFRICA DATA CENTER MARKET VENDOR LANDSCAPE

• The Africa data center market has the presence of IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, IBM, NetApp,Oracle, and others that provide advanced IT infrastructure in the market.
• The Africa data center market has a presence of several regional and global contractors and subcontractors, such as AtkinsRéalis, Arup, Abbeydale, CAP DC, Copycat Group, Edarat Group, JLB Architects, REDCON Construction, Raya Network Services, and others, which provide construction, installation, engineering and commissioning services for the construction of data center facilities across the region.
• The Africa data center market has the presence of several global support infrastructure providers that will increase its competitiveness in the market. Some of the support infrastructure vendors present in the Africa data center market include ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv, and others.

IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco Systems
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Huawei Technologies
• IBM
• Inspur Group
• Juniper Networks
• Lenovo
• NetApp
• Oracle

Prominent Support Infrastructure Providers

• 4energy Group
• ABB
• Caterpillar
• Cummins
• Delta Electronics
• EATON
• EVAPCO
• Legrand
• Master Power Technologies
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Prominent Data Center Construction Contractors

• Abbeydale
• Arup
• AtkinsRéalis
• b2 Architects
• CAP DC
• Chess Enterprises
• COPYCAT GROUP
• Eastra Solutions
• Edarat Group
• EDS Engineers
• Egypro
• H&MV Engineering
• Ingenium
• Interkel
• JLB Architects
• MWK Engineering
• Orascom Construction
• REDCON Construction
• Raya Network Services
• Royal HaskoningDHV
• Shaker Group
• Sterling & Wilson
• Summit Technology Solutions
• Tri-Star Construction
• United For Technology Solutions
• Westwood Management

Data Center Investors

• 21st Century Technologies
• Africa Data Centres
• Airtel Africa
• Digital Parks Africa
• Digital Realty
• Equinix
• Galaxy Backbone
• IXAFRICA Data Centre
• N+ONE
• NTT Data
• Open Access Data Centres (OADC)
• PAIX
• Paratus Namibia
• Rack Centre
• Raxio Data Centres
• Raya Data Center
• Telecom Egypt
• Vantage Data Centers
• wingu.africa

New Entrants

• Cloudoon
• Kasi Cloud
• Kemet Data Center (Intro Technology and Oman Data Park)
• Khazna Data Centers
• Gulf Data Hub

KEY QUESTIONS ANSWERED:

1. How big is the Africa data center market?

2. What are the key trends in the Africa data center market?

3. How much MW of power capacity is expected to reach the Africa data center market by 2030?

4. What is the estimated market size in terms of area in the Africa data center market by 2030?

5. What is the growth rate of the Africa data center market?