South Africa Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

South Africa Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The South Africa Data Center Market is projected to register a CAGR of 15.68%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to achieve 828.9 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 4.4 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 220,200 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
• DC Facilities: In 2022, there were 24 colocation data center facilities in South Africa. Johannesburg is the major hotspot, followed by Cape Town in the country. Some factors contributing to the growth of the data center market in the country are the adoption of 5G, smartphone penetration, and rising digitization.
• Leading Market Player: Teraco Data Environments (Digital Realty) was the leading player in the South African market in the historical period and is expected to roll out a 7-data center facility with a total capacity of 150 MW during the forecast period.

South Africa Data Center Market Trends

Tier 3 is the largest Tier Type

• Tier 1 & 2 facilities are losing their demand as they cannot fulfill the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24/7, which has gradually shifted the preference toward tier 3 and tier 4 data centers.
• Tier 4 data centers are expected to witness the highest growth of 20.41%, followed by Tier 3 data centers with 12.87% growth till 2029. Implementing such standards in the facilities ensures minimal downtown while increasing the efficiency of the facilities.
• Among the major industries, BFSI and media & entertainment are expected to majorly adopt tier 3 facilities owing to the growing acceptance of solutions like bitcoin, digital cards, biometric payments, buy now pay later (BNPL), and open banking for various financial transactions in their daily lives, in addition to being aware of these technologies.
• According to Mastercard's New Payments Index 2022, 95% of South Africans used one or more developing digital payment methods in 2021. In Q2 and Q3, 67% of consumers made an online purchase, 66% bought something through a mobile app, and 49% purchased a service through an online subscription.
• In media & entertainment, the average time spent on social media in South Africa has been rising yearly since 2017, peaking at 2 hours and 47 minutes in that year and reaching 3 hours and 37 minutes by Q3 2021.

South Africa Data Center Industry Overview

The South Africa Data Center Market is fairly consolidated, with the top five companies occupying 82.82%. The major players in this market are Africa Data Centres (Cassava Technologies), Digital Parks Africa (PTY) LTD., MTN (PTY) LTD (MTN GROUP LTD), Open Access and Teraco Data Environments (Digital Realty) (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support