The South Africa Data Center Power Market size is estimated at USD 181.40 million in 2024, and is expected to reach USD 333.5 million by 2029, growing at a CAGR of 13.60% 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.
Usage levels are expected to double over the next five years, and projections of DC power consumption will grow by 20% to 25% annually, expecting to reach nearly 8,000 GWh by 2026.
The South African data center power market is slightly fragmented among the players and has gained a competitive edge in recent years. The few major players in the market include ABB Ltd, Caterpillar Inc., Eaton Corporation, and others. 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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