According to Arizton’s latest research report, Africa data center market is growing at a CAGR of 11.76% during 2024-2030.
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Report Summary
Market Size – Investment (2030): $6.81 Billion
Market Size – Investment (2024): $3.49 Billion
CAGR – Investment (2024-2030): 11.76%
Market Size – Area (2030): 1,503 Thousand Sq. ft.
Market Size – Power Capacity (2030): 329 MW
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Segmentation Analysis: Infrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standard, and Geography
Geographical Analysis: South Africa, Kenya, Nigeria, Egypt, and Other African Countries
Digital Transformation and Data Center Growth in Africa
Africa’s digital transformation is being fueled by key data center hubs in South Africa, Kenya, Nigeria, and Egypt. South Africa leads in data center investments, while Kenya, Nigeria, and Egypt are making significant strides in hyperscale data center development. Local telecoms and colocation providers like Raxio, OADC, and PAIX are expanding in markets such as DRC, Ivory Coast, and Mozambique.
Egypt is emerging as a North African hub, benefiting from its strategic location and extensive submarine cable connections to Europe, Asia, and the Middle East. Notable projects, including Huawei’s $300 million cloud region in Cairo, are accelerating its digital growth.
Kenya is becoming East Africa’s data center powerhouse, supported by its Vision 2030 agenda and major cloud providers like Microsoft and Oracle. Nigeria, with its large tech-savvy population, is experiencing rapid growth, particularly in Lagos. Governments are backing these initiatives with tax incentives and public-private partnerships.
Cloud Adoption and Colocation Investment in Africa
In Africa, on-premises investments are still prevalent due to limited colocation facilities in emerging markets, although the shift toward colocation and cloud services is growing. Colocation data centers are mainly concentrated in South Africa, Kenya, and Nigeria, with fewer facilities in other regions. Despite this, many enterprises continue investing in on-premises infrastructure, a trend expected to change in the coming years.
Africa has become a leader in cloud adoption, with companies hosting over 43% of their workloads in the public cloud, surpassing North America and China. Government entities are also migrating data to third-party colocation centers operated by global cloud providers. For example, in 2024, Huawei secured a major cloud contract with the United Bank for Africa, while Gold Fields successfully migrated its systems to AWS.
However, challenges such as legal barriers and a shortage of skilled cloud professionals persist. Despite these hurdles, cloud adoption in Africa is expected to grow, supported by global cloud giants investing in the region.
Growth of Data Center Markets Across Africa
The African data center market is experiencing substantial growth, fueled by technology advancements, digitalization, and government support. In South Africa, Johannesburg and Cape Town are the primary hubs, with other cities like Centurion, Durban, and Port Elizabeth also seeing significant development. Kenya offers tax incentives, including corporate tax exemptions, to attract data center investments within special economic zones.
Nigeria is rapidly emerging as a key player in Africa’s data center market, benefiting from strong connectivity with multiple cables linking the country to Africa and beyond. Egypt is also becoming a major data center hub, thanks to its proximity to Europe, favorable land and electricity prices, and improving fiber connectivity.
Countries like Ethiopia, Morocco, Ghana, Algeria, and others are witnessing growing investments in data centers, with increasing demand driving future capacity expansions. Morocco, in particular, offers various investment incentives through programs like the Hassan II fund and Casablanca Finance City.
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Market Segmentation
Infrastructure
IT Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Cooling Techniques
General Construction
Tier Standard
Geography
Vendor Landscape
IT Infrastructure Providers
Prominent Support Infrastructure Providers
Prominent Data Center Construction Contractors
New Entrants
Key Questions Answered in the Report:
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