Africa Data Center Market Landscape 2024-2029

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THE AFRICA DATA CENTER MARKET SIZE WITNESSED INVESTMENTS OF USD 3.33 BILLION IN 2023 AND WILL WITNESS INVESTMENTS OF USD 6.46 BILLION BY 2029, GROWING AT A CAGR OF 11.65%

The Africa Data Center Market Size, Share, & Trends Analysis by

  • Infrastructure: IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, and General Construction
  • IT Infrastructure: Server, Storage, and Network
  • Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, Power Distribution Units, and Other Electrical Infrastructure
  • Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
  • Cooling Systems: CRAC & CRAH Units, Chiller Units, Cooling Towers, Condensers and Dry Coolers, and Other Cooling Units
  • Cooling Techniques: Air-based Cooling Technique and Liquid-based Cooling Technique
  • General Construction: Core and Shell Development, Installation and Commissioning Services, Engineering and Building Design, Physical Security, Fire Detection and Suppression, and DCIM
  • Tier Standards: Tier I & II, Tier III, and Tier IV
  • Geography: Africa (South Africa, Kenya, Nigeria, Egypt, Ethiopia, and Other African Countries)

Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast 2024–2029.

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AFRICA DATA CENTER MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
MARKET SIZE (INVESTMENT)USD 6.46 Billion (2029)
MARKET SIZE (AREA)1,685 thousand sq. Feet (2029)
MARKET SIZE (POWER CAPACITY)305 MW (2029)
CAGR INVESTMENT (2023-2029)11.65%
HISTORIC YEAR2020-2022
BASE YEAR2023
FORECAST YEAR2024-2029
MARKET SEGMENTSInfrastructure, IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Techniques, General Construction, Tier Standards, and Geography
GEOGRAPHIC ANALYSISAfrica (South Africa, Kenya, Nigeria, Egypt, Ethiopia, and Other African Countries)
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INDUSTRY OVERVIEW

The Africa data center market by investment was valued at USD 3.33 billion in 2023 and is expected to reach USD 6.46 billion by 2029, growing at a CAGR of 11.65% during the forecast period. Africa is experiencing remarkable technological advancements, with AI at the forefront of this revolution. The widespread implementation of AI across the region will result in increased data generation, creating a surge in demand for data centers across multiple African countries. The growing use of AI and ML technologies will augment the rack power density in the market and drive the demand for smart cooling solutions in the coming years.

KEY TRENDS

Government Support for Data Center Development Will Drive The Market Growth

  • African governments are working on improving digital infrastructure by supporting digitalization and offering tax incentives. Creating Free Trade Zones (FTZs) and Special Economic Zones (SEZs) will encourage innovative technologies, boost investments in data centers, and promote the overall progress of technologies in the region.
  • In February 2023, the government of South Africa introduced the data-driven economy program to help businesses use data more effectively. The government offers financial support to encourage businesses to embrace data-driven approaches and grow more effectively.
  • In addition, policies and regulations on the local storage of sensitive data will boost the digital economy in several African countries. Most data is currently stored in offshore data centers. For example, the Nigerian government has mandated the local storage of data pertaining to sectors such as oil and gas, financial services, and the public sector.

Growing Smart City Developments Will Drive the Demand for Advanced Technologies in the Market

  • As of 2023, most countries, including South Africa, Kenya, Nigeria, Egypt, Ethiopia, Morocco, Ghana, and Algeria, account for an average internet penetration above 64%. Africa's central location market is a key area for undersea cable landing stations, enhancing global connectivity and creating large-scale smart cities. As a smart city grows, more data will be generated, augmenting the need for storage and computing power. This demand will drive the establishment of edge data centers for High-Performance Computing (HPC), making the region more commercially appealing and attractive for investors.
  • As smart cities progress, there will be a push for advanced technologies, including 5G, IoT, and AI, to enhance internet speed and data flow. This surge in connectivity is expected to boost the Africa data center market. With the smart city initiatives gaining momentum, more investors are estimated to enter the data center market and invest in data center infrastructure.

SEGMENTATION INSIGHTS

  • The Africa data center market, particularly in terms of IT infrastructure, is primarily seeing the use of switches with up to 40GbE ports. As cloud data centers expand, there is an anticipated increase in demand for switches with ports exceeding 40GbE. Additionally, with the growing need for sophisticated infrastructure, the uptake of flash storage devices and blade servers is expected to rise in the upcoming years.
  • In the coming years, sustainability mandates are anticipated to drive the adoption of generators in the Africa data center market that utilize sustainable fuels like hydrotreated vegetable oils, among others. This trend is expected to be followed by increased demand for UPS  systems equipped with lithium-ion batteries and other types. 
  • The industry is poised to see the ongoing development of greenfield buildings in various countries where abundant land is available for industrial development. The entry of new global data center operators and the increasing expansion of existing operators in the region are also expected to attract several new global contractors.

GEOGRAPHICAL ANALYSIS

  • The Africa data center market is poised for significant growth, driven by technology advancements, increased digitalization, and strategic government initiatives.
  • South Africa is emerging as a major global consumer market due to its growing population, increasing disposable incomes, and expanded access to technology.
  • The data center industry in Kenya is undergoing significant growth, driven by enhanced internet access, robust information and communication technology (ICT) infrastructure, and expanded services.
  • Nigeria is emerging as one of Africa’s fastest-growing markets after South Africa, with increasing demand for data centers expected in the upcoming years. Government initiatives and the country's strategic location are fueling this growth.
  • The data center industry in Egypt is emerging as a key player in the Africa data center market, driven by its close proximity to Europe, advancing digitalization, development of industrial land, and enhanced fiber connectivity, among other factors.
  • Ethiopia's data center industry is being driven by the increasing use of digital platforms, adoption of advanced technologies such as IoT and big data, growth in an AI-driven digital economy, enhanced 5G network connectivity, and rise in internet users, particularly in social media and mobile devices. These are rapidly boosting data traffic, thereby escalating the demand for data centers in the upcoming years.
  • Other country markets, including Morocco, Ghana, Algeria, Cameroon, Angola, Uganda, Namibia, Zambia, Senegal, Rwanda, Mozambique, and Botswana, are also promising. Morocco currently leads with the most substantial data center facilities. Still, demand is expected to surge across these nations, driving significant regional data center capacity growth in the upcoming years.

VENDOR LANDSCAPE

  • The Africa data center market has the presence of IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, IBM, NetApp,  Oracle, and others that are driving the availability of advanced IT infrastructure in the market.
  • The Africa data center industry has a presence of several regional and global contractors and subcontractors, such as Atkins, Orascom Construction, Arup, Abbeydale Projects, REDCON Construction, Raya Information Technology, and others.

Frequently Asked Questions

How big is the Africa data center market?

The Africa data center market size was valued at USD 3.33 billion in 2023 and is expected to reach USD 6.46 billion by 2029.

What is the growth rate of the Africa data center market?

The Africa data center market share is growing at a CAGR of 11.65% during the forecast period.

What is the estimated market size in terms of area in the Africa data center market by 2029?

Regarding area, the Africa data center market is expected to reach 1,685 thousand square feet by 2029.

What are the key trends in the Africa data center industry?

Some of the key trends in the Africa data center industry include an increase in smart city initiatives, government support for data center development, growing adoption of artificial intelligence, migration from on-premises to colocation & managed services, and a rise in 5G network connectivity and edge data center deployments.

How many MW of power capacity is expected to reach the Africa data center market by 2029?

In the Africa data center market, power capacity is expected to reach 305 MW by 2029.

The Africa data center market is projected to reach USD 6.46 billion by 2029, growing at a CAGR of 11.65% from 2023 to 2029.

The following factors are likely to contribute to the growth of the Africa data center market during the forecast period:

  • Increasing Adoption of Cloud Services
  • Growth in Penetration of Big Data & IoT
  • Growth in Renewable Energy Adoption
  • Increase in Submarine Cable & Inland Connectivity

Base Year: 2023

Forecast Year: 2024-2029

The report considers the present scenario of the Africa data center market and its market dynamics for 2024−2029. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the industry.  

Segmentation by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Segmentation by IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units

Segmentation by Cooling Techniques

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security
  • Fire Detection & Suppression
  • DCIM

Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

Segmentation by Geography

  • Africa
    • South Africa
    • Kenya
    • Nigeria
    • Egypt
    • Ethiopia
    • Other African Countries

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1.    ABOUT ARIZTON
2.    ABOUT OUR DATA CENTER CAPABILITIES
3.    WHAT’S INCLUDED
4.    SEGMENTS INCLUDED
5.    RESEARCH METHODOLOGY
6.    MARKET AT GLANCE
7.    PREMIUM INSIGHTS
8.    INVESTMENT OPPORTUNITIES
8.1.    INVESTMENT: MARKET SIZE & FORECAST
8.2.    AREA: MARKET SIZE & FORECAST
8.3.    POWER CAPACITY: MARKET SIZE & FORECAST

9.    MARKET DYNAMICS
9.1.    MARKET OPPORTUNITIES & TRENDS
9.2.    MARKET GROWTH ENABLERS
9.3.    MARKET RESTRAINTS
9.4.    SITE SELECTION CRITERIA

10.    INFRASTRUCTURE SEGMENTATION
10.1.    IT INFRASTRUCTURE
10.2.    ELECTRICAL INFRASTRUCTURE
10.3.    MECHANICAL INFRASTRUCTURE
10.4.    COOLING SYSTEMS
10.5.    COOLING TECHNIQUES
10.6.    GENERAL CONSTRUCTION

11.    TIER STANDARDS SEGMENTATION
12.    GEOGRAPHY SEGMENTATION
13.    AFRICA
13.1.    MARKET SNAPSHOT & KEY HIGHLIGHTS
13.2.    DATA CENTER MARKET BY INVESTMENT
13.3.    DATA CENTER MARKET BY INFRASTRUCTURE
13.4.    DATA CENTER MARKET BY AREA
13.5.    DATA CENTER MARKET BY POWER CAPACITY
13.6.    DATA CENTER MARKET BY SUPPORT INFRASTRUCTURE
13.7.    DATA CENTER MARKET BY IT INFRASTRUCTURE

14.    SOUTH AFRICA
14.1.    KEY INVESTORS & INVESTMENTS
14.2.    MARKET BY INVESTMENT
14.3.    KEY AREA, INVESTMENT COST & LAND PRICING
14.4.    MARKET BY AREA
14.5.    RENEWABLE ENERGY ADOPTION
14.6.    MARKET BY POWER CAPACITY
14.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
14.8.    MARKET BY INFRASTRUCTURE

15.    KENYA
15.1.    KEY INVESTORS & INVESTMENTS
15.2.    MARKET BY INVESTMENT
15.3.    KEY SEZS, INVESTMENT COST & LAND PRICING
15.4.    MARKET BY AREA
15.5.    RENEWABLE ENERGY ADOPTION
15.6.    MARKET BY POWER CAPACITY
15.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
15.8.    MARKET BY INFRASTRUCTURE

16.    NIGERIA
16.1.    KEY INVESTORS & INVESTMENTS
16.2.    MARKET BY INVESTMENT
16.3.    KEY SEZS & LAND ACQUISITION
16.4.    MARKET BY AREA
16.5.    RENEWABLE ENERGY ADOPTION
16.6.    MARKET BY POWER CAPACITY
16.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
16.8.    MARKET BY INFRASTRUCTURE

17.    EGYPT
17.1.    KEY INVESTORS & INVESTMENTS
17.2.    MARKET BY INVESTMENT
17.3.    KEY AREA, INVESTMENT COST & LAND PRICING
17.4.    MARKET BY AREA
17.5.    RENEWABLE ENERGY ADOPTION
17.6.    MARKET BY POWER CAPACITY
17.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
17.8.    MARKET BY INFRASTRUCTURE

18.    ETHIOPIA
18.1.    KEY INVESTORS & INVESTMENTS
18.2.    MARKET BY INVESTMENT
18.3.    KEY AREA & LAND ACQUISITION
18.4.    MARKET BY AREA
18.5.    RENEWABLE ENERGY ADOPTION
18.6.    MARKET BY POWER CAPACITY
18.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
18.8.    MARKET BY INFRASTRUCTURE

19.    OTHER AFRICAN COUNTRIES
19.1.    KEY INVESTORS & INVESTMENTS
19.2.    MARKET BY INVESTMENT
19.3.    KEY SEZS & LAND DEVELOPMENT
19.4.    MARKET BY AREA
19.5.    RENEWABLE ENERGY ADOPTION
19.6.    MARKET BY POWER CAPACITY
19.7.    KEY SUPPORT INFRASTRUCTURE ADOPTION
19.8.    MARKET BY INFRASTRUCTURE

20.    MARKET PARTICIPANTS
20.1.    IT INFRASTRUCTURE PROVIDERS
20.2.    SUPPORT INFRASTRUCTURE PROVIDERS
20.3.    DATA CENTER CONTRACTORS & SUBCONTRACTORS 
20.4.    DATA CENTER INVESTORS
20.5.    NEW ENTRANTS

21.    QUANTITATIVE SUMMARY
22.    APPENDIX
22.1.    ABBREVIATIONS
22.2.    DEFINITIONS
22.3.    SEGMENTAL COVERAGE

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Frequently Asked Questions

How big is the Africa data center market?

The Africa data center market size was valued at USD 3.33 billion in 2023 and is expected to reach USD 6.46 billion by 2029.

What is the growth rate of the Africa data center market?

The Africa data center market share is growing at a CAGR of 11.65% during the forecast period.

What is the estimated market size in terms of area in the Africa data center market by 2029?

Regarding area, the Africa data center market is expected to reach 1,685 thousand square feet by 2029.

What are the key trends in the Africa data center industry?

Some of the key trends in the Africa data center industry include an increase in smart city initiatives, government support for data center development, growing adoption of artificial intelligence, migration from on-premises to colocation & managed services, and a rise in 5G network connectivity and edge data center deployments.

How many MW of power capacity is expected to reach the Africa data center market by 2029?

In the Africa data center market, power capacity is expected to reach 305 MW by 2029.