The Africa Data Center Power Market size is estimated at USD 502.70 million in 2024, and is expected to reach USD 925.5 million by 2029, growing at a CAGR of 13.40% during the forecast period (2024-2029).
African data centers use a considerable amount of power, and commercial DC power usage has been growing by an average of 40% annually over the past five years as adoption has accelerated. It was expected to pass the 4,000 GWh mark in 2022. South Africa's power grid has experienced challenges with reliability and stability, leading to potential disruptions in data center operations. Data centers require a reliable and stable power supply to ensure uninterrupted operations, and grid instability can impact their sustainability efforts. Such factor leads to major market demand.
There are close to 70 submarine cable systems connecting Africa, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Africa-1, which stretches over 10,000 km with landing points in Port Said and Ras Ghareb in Egypt.
The African data center power market is slightly consolidated among the players and has gained a competitive edge in recent years. A few major players in the market include Aggreko ZA, ABB Ltd, and Cummins Inc. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.
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