MARKET OUTLOOK

The Ethiopia data center market size will witness investments of USD 226 million by 2028, growing at a CAGR of 15.54% during the forecast period. The country’s government has initiated a “smart city” project that focuses on four main aspects of overall development: setting up the right systems, improving physical infrastructure, enhancing social services, and boosting the economy. For Instance, In July 2023, a memorandum of understanding (MoU) was signed between The Federal Democratic Republic of Ethiopia and the Republic of Korea to develop a “Smart City” project in Ethiopia. Further, Ethiopia’s Ministry of Innovation and Technology shared that they are in the process of creating a new national policy focused on Artificial Intelligence (AI). This policy is designed to make the most out of AI technology and ensure that it is used in a way that is responsible and beneficial for the entire country.

The Ethiopia data center market is driven by factors such as the growing adoption of digital platforms, adoption of advanced technologies such as IoT and big data, AI, digital economy, 5G network connectivity, and growing internet users. The growth in social media and mobile users will rapidly increase the data traffic in the country and will drive the demand for data centers in the country. Also, the government of Ethiopia is creating strategies and policies that encourage the use of AI in different industries, such as healthcare, education, manufacturing, and others.

KEY HIGHLIGHTS

• Data center development in the country has started to witness steady growth with investments from operators such as Raxio Data Centres, Safaricom, and others.
• Smart city initiatives lead to the development and adoption of digital platforms in the country, such as the collaboration between Ethio Telecom and Addis Ababa city administration to build a smart city in Addis Ababa, Ethiopia. In July 2023, The memorandum of understanding(MoU) was signed between The Federal Democratic Republic of Ethiopia and the Republic of Korea to develop a “Smart City” project in Ethiopia.
• In terms of 4G & 5G connectivity, telecom operators such as Ethio Telecom have announced that they will expand 5G as well as service quality in Ethiopia to meet the demand of end-users. For instance, in June 2023, the World Bank decided to make a significant investment in Africa to help Safaricom Ethiopia build and run advanced 4G and 5G mobile networks.
• Increasing demand for digitalization, an increasing number of internet users, and digitalization in different sectors are increasing the demand for colocation data centers and contributing to the Ethiopia data center market growth.
• In terms of mechanical infrastructure, the Ethiopia data center market is experiencing growth in the adoption of air-based cooling solutions with a strong redundancy of N+1. In contrast, operators are installing power backup solutions with on-site fuel storage.
• The adoption of renewable energy is gaining traction in the market, with governments in the country taking several initiatives for the growth of green energy resources. For instance, the Ethiopian government has planned to generate electricity over 35,000 MW through geothermal by 2037.
• In terms of colocation, the Ethiopia data center market is expected to witness a rise in competitiveness in revenue generation as new investors start to enter the industry from 2022 onward.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and Ethiopia colocation market revenue.
• An assessment of the data center investment in Ethiopia by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across locations in the country.
• A detailed study of the existing Ethiopia data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in Ethiopia
  • Facilities Covered (Existing): 02
  • Facilities Identified (Upcoming): 01
  • Coverage: 1 City
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Ethiopia
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The Ethiopia data center market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
• A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
• Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
• A transparent research methodology and the analysis of the demand and supply aspects of the industry.

VENDOR LANDSCAPE

• The market has started witnessing the entry of foreign investors in 2022. Some of the key investors in the Ethiopia data center market are Raxio Data Centres, Safaricom, and wingu.africa.
• africa inaugurated its first facility in the country in Addis Ababa with a space of around 161 thousand square feet and a power capacity of around 10 MW once fully built.
• Addis Ababa is the preferred location, with major investments from colocation service providers such as. wingu.africa, Safaricom, and others.
• The market also has the presence of global support infrastructure providers such as ABB, Cummins, Legrand, and others, which makes the availability of infrastructure easier in the industry.
• In terms of IT infrastructure providers, there are several vendors operating in the Ethiopia data center market, such as Cisco Systems, IBM, Hitachi Vantara, and others.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Addis Ababa
• List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Ethiopia data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The segmentation includes:

• IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
• Electrical Infrastructure
  • UPS Systems
  • Generators
  • Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure
• Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Other Cooling Units
• General Construction
  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

VENDOR LANDSCAPE

• IT Infrastructure Providers: Cisco Systems, Huawei Technologies, Hitachi Vantara, IBM
• Support Infrastructure Providers: ABB, Cummins, Legrand, Schneider Electric, Vertiv.
• Data Center Investors: Raxio Data Centres, Safaricom, wingu.africa