Africa Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Governmen

Africa Data Center Market by Type (Colocation, Hyperscale, Edge, and Others), by Deployment Model (On-premise, Cloud, and Hybrid), by Enterprise Size (Large Enterprise and Small and Medium Size Enterprise), and by End User (BFSI, IT and Telecom, Government, Energy and Utilities, and Other End Users)–Opportunity Analysis and Industry Forecast, 2024–2030

The Africa Data Center Market size was valued at USD 1.76 billion in 2023, and is predicted to reach USD 3.13 billion by 2030, at a CAGR of 8.6% from 2024 to 2030.

The South African government's efforts to foster digital inclusion and bolster the technology sector are fueling the upward trajectory of the data center industry. As it positions itself as a hub for digital commerce in Africa, South Africa's data center market is poised to play a crucial role in driving the nation's digital transformation. Similarly, Nigeria, a key player in West Africa, is experiencing a rapid expansion of its data center market. With 11 operational data centers, cities such as Lagos and Abuja are emerging as vital hubs for data center infrastructure. Government initiatives aimed at improving internet connectivity and addressing cybersecurity concerns, such as the National Digital Economy Policy Strategy (NDEPS), are propelling the growth of Nigeria's data center industry. The NDEPS focuses on eight pillars to reinvigorate the Nigerian economy by leveraging digital technology opportunities, further propelling the expansion of the data center market in the region.

However, the data center market faces significant hurdles, primarily due to the substantial initial investment required and stringent environmental regulations. Establishing and maintaining network infrastructure demands considerable upfront financial commitments, creating barriers for smaller enterprises and startups attempting to enter the market. Additionally, ongoing compliance with environmental standards necessitates continuous investment in energy-efficient technologies hinders the overall market growth.

On the other hand, the integration of edge computing into market operations presents promising prospects for the industry's growth. By minimizing latency and enabling real-time processing, edge computing supports applications such as the Internet of Things (IoT) and Augmented Reality (AR), reducing the load on centralized cloud data centers while providing scalability and flexibility. This decentralized approach not only enhances security by processing sensitive data locally but also aligns with evolving digital landscapes, creating diverse opportunities for network infrastructure providers. Recent investments in startups such as Armada indicate the growing interest in edge computing solutions, signaling a concerted effort to address connectivity challenges and bridge the digital divide.

Segment Overview

The Africa Data Center industry is segmented based on type, deployment model, enterprise size, and end users.
Based on type, the market is segmented into colocation, hyperscale, edge, and others.
Based on deployment model, the market is divided into on-premise, cloud, and hybrid.
Based on enterprise size, the market is bifurcated into large enterprise, small and medium size enterprise.
Based on the end users, the market is divided into BFSI, IT and telecom, government, energy and utilities, and other end users.

Key Market Players

Leading players operating in the Africa data center industry include:
• Amazon.com Inc.
• IBM Corporation
• Microsoft Corporation
• Cisco System Inc.
• Oracle Corporation
• SAP SE
• Hewlett Packard Enterprise Company
• NTT Communications Corporation
• Equinix Inc.
• Digital Reality Trust Inc

KEY BENEFITS
• The Africa data center market report provides a quantitative analysis of the current market and estimations through 2024-2030 that assists in identifying the prevailing market opportunities to capitalize on.
• The study comprises a deep dive analysis of the market trend including the current and future trends for depicting the prevalent investment pockets in the market.
• The information related to key drivers, restraints, and opportunities and their impact on the market is provided in the report.
• The competitive analysis of the market players along with their market share in the Africa data center market.
• The SWOT analysis and Porter’s Five Forces model are elaborated in the study.

Value chain analysis in the market study provides a clear picture of the stakeholders’ roles.