Kenya Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

MARKET OUTLOOK

The Kenya data center market will witness investments of USD 440 million by 2029, growing at a CAGR of 11.66% during the forecast period. The government of Kenya launched the National Optic Fiber Backbone Infrastructure (NOFBI) to create a secure and digital highway for business applications and Value-Added Services (VAS). This infrastructure expansion boosted international traffic, reduced internet costs, and improved internet speeds. Also, collaborative efforts between the government and private sectors aim to position Kenya as a technology hub in the region, driven by proactive measures.

The government of Kenya introduced a 10-year Information Communication Technology (ICT) master plan (2022-2032) to boost its technology and digital economy. This plan focuses on four main areas: improving digital infrastructure, enhancing digital services and data management, building digital skills, and fostering digital innovation for entrepreneurship. It is a roadmap to keep Kenya on par with global technology trends.

The Kenya data center market is growing rapidly due to better internet connections, the rising use of smartphones, the steady growth in internet users, and the growing number of internet-connected devices across the market. Furthermore, Kenya anticipates a significant economic boost by implementing 5G, particularly in the agriculture, healthcare, and education sectors. The country is focused on developing supportive policies regulations, and making substantial investments to maximize these benefits. The growing 5G environment will further drive the demand for edge data centers in the coming years.

KEY HIGHLIGHTS

• Nairobi is the hub for data center development and foreign investments in Kenya. Other cities are also expected to grow in the coming years. For instance, in August 2023, IXAFRICA DATA CENTRE signed a deal with Tilisi Developments to purchase 11 acres of prime land to construct its second data center in Nairobi, Kenya.
• Kenya accounts for a growing cloud infrastructure, with various operators such as Amazon Web Services (AWS) operating through local zone presence. Oracle Cloud, for instance, has one planned cloud region in the country.
• Improvements in submarine and inland connectivity will boost the Kenya data center market growth. For instance, around two submarine cables will be operational in the coming years.
• Over the years, the Kenya data center market has witnessed investments from local and foreign operators such as Digital Realty, Africa Data Centres, MTN, and Telkom Kenya.
• The rising adoption of cloud-based services is propelling the growth of retail and wholesale colocation services in the market. The market is witnessing increased demand for colocation spaces across existing and upcoming facilities.
• Special Economic Zones (SEZs) are projected to attract investments in the Kenya data center market. The government has actively promoted SEZs to stimulate economic growth and provide favorable business conditions, including data center operators. For instance, in October 2023, the government of Kenya decided to add five more SEZs: Sagana, Thika, Nakuru, Eldoret, and Busia.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size is available regarding investment, area, power capacity, and Kenya colocation market revenue.
• An assessment of the data center investment in Kenya by colocation, hyperscale, and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across cities in the country.
• A detailed study of the existing Kenya 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 Kenya
  • Facilities Covered (Existing): 11
  • Facilities Identified (Upcoming): 6
  • Coverage: 3+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data Center Colocation Market in Kenya
  • Colocation Market Revenue & Forecast (2023-2029)
  • Retail Colocation Pricing
• The Kenya 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 market.
• A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

• Regarding support infrastructure, the Kenya data center market has been witnessing the dominating presence of global vendors such as Carrier, ABB, Alfa Laval, Caterpillar, Eaton, Legrand, Piller Power System, Rittal, and others. Due to the presence of global vendors, the market has witnessed strong competitiveness in infrastructure offerings and solutions.
• The presence of IT infrastructure vendors such as Arista Networks, Atos, Cisco Systems, Dell Technologies, and others has led to the availability of advanced IT infrastructure in the Kenya data center market.
• The market has the presence of several global construction contractors who have offered their services to several data center construction projects in past years. For instance, in September 2023, Sudlows Consulting was selected by Olkaria EcoCloud Data Centre to provide consultancy services for its new data center in Olkaria, Kenya.
• The Kenya data center market is experiencing significant activity, including the entry of several new players, substantial investments in new data centers, and various mergers, acquisitions, and joint ventures. These developments highlight the growing interest and opportunities in the market.
• Some of the key investors in the Kenya data center market are IXAFRICA DATA CENTRE, Africa Data Centres, Olkaria EcoCloud Data Centre, Airtel Africa, Cloudoon, and Others.

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the Region (Area and Power Capacity)
  • Nairobi
  • Other Cities
• List of Upcoming Facilities in the Region (Area and Power Capacity)
  • Nairobi
  • Other Cities

REPORT COVERAGE:

This report analyses the Kenya 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
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
• Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • 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
• Geography
  • Nairobi
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Arista Networks, Atos, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, and NetApp.
• Data Center Construction Contractors & Sub-Contractors: Arup, Chess Enterprises, Copy Cat Group, Eastra Solutions, Egypro, Future-tech, Gruppo ICM, HubTech, Kinetic Controls, Norkun Intakes, Remax Consult, Sudlows Consulting, Tetra Tech, Turner & Townsend, Westwood Management, and X2X Group.
• Support Infrastructure Providers: ABB, Alfa Laval, Carrier, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, and Vertiv.
• Data Center Investors: Africa Data Centres, Digital Realty, IXAFRICA DATA CENTRE, Safaricom, and Telkom Kenya.
• New Entrants: Airtel Africa, Cloudoon, and Olkaria EcoCloud Data Centre.