MARKET OUTLOOK

The South Africa data center market size will witness investments of USD 3.10 billion by 2028, growing at a CAGR of 8.60% during the forecast period. Johannesburg currently holds the position of the top data center market in South Africa, boasting a robust ecosystem of major data center facilities and renowned operators. Moreover, Johannesburg has attracted several prominent operators, including Teraco (Digital Realty), Africa Data Centres, MTN, and Business Connexion (BCX). Additionally, global cloud providers like Huawei Technologies, Microsoft, and Oracle Cloud have established their own cloud regions within Johannesburg.

In 2022, South Africa witnessed significant investments from various colocation data center operators, expanding their market presence. Prominent players such as Equinix and Vantage Data Centers have made notable contributions to the South Africa data center market. Further, in August 2022, the U.S. International Development Finance Corporation (DFC) disbursed an initial payment of USD 83 million as part of its USD 300 million loan to Africa Data Centres. This initial disbursement primarily supports the expansion of data centers in South Africa.

South Africa is home to renowned global cloud service providers, including Amazon Web Services (AWS), Microsoft, and Oracle Cloud. These providers offer cloud-on-ramp services across multiple facilities in Cape Town, Johannesburg, and other nationwide cities. Further, in April 2023, Amazon Web Services (AWS), the cloud computing division of Amazon, announced its plan to allocate USD 1.66 billion towards expanding its cloud infrastructure in South Africa by 2029.

KEY HIGHLIGHTS

• South Africa boasts the largest investment market for data centers in Africa. Prominent players in the South Africa data center market landscape include Africa Data Centres, Teraco (Digital Realty), and Vodacom, among others.
• The South African economy has exhibited signs of growth and made a remarkable recovery from the impacts of the COVID-19 pandemic. In Q3 2022, South Africa's GDP experienced a 1.6% expansion.
• Organizations throughout South Africa are actively transitioning their workloads to the cloud, contributing to the nation's digitalization objectives and fueling the demand for data centers. Noteworthy cloud service providers like Huawei, AWS, Microsoft, and Oracle have established a presence in the country, indicating a robust appetite for cloud services among local organizations.
• The South African government is implementing initiatives to accelerate the adoption of broadband and ultra-broadband across the country. Among these efforts is the plan to discontinue 2G and 3G networks by March 2025.
• Operators in South Africa increasingly embrace renewable energy sources to power their facilities, often through power purchase agreements (PPAs). In June 2022, Vantage Data Centers, a prominent U.S.-based data center provider, entered into a long-term agreement with SolarAfrica, a leading commercial solar installer in South Africa.
• South Africa is one of Africa's most extensively connected countries, hosting eight operational submarine cables with two additional cables in the pipeline.

WHY SHOULD YOU BUY THIS RESEARCH?

• Market size available in the investment, area, power capacity, and South Africa colocation market revenue.
• An assessment of the data center investment in South Africa by colocation and enterprise operators.
• Investments in the area (square feet) and power capacity (MW) across locations in the country.
• A detailed study of the existing South Africa data center market landscape, an in-depth industry analysis, and insightful predictions about industry size during the forecast period.
• Snapshot of existing and upcoming third-party data center facilities in South Africa
  • Facilities Covered (Existing): 50
  • Facilities Identified (Upcoming): 11
  • Coverage: 11+ Locations
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
• Data center colocation market in South Africa
  • Market Revenue & Forecast (2022-2028)
  • Retail Colocation Pricing
• The South African 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 market.

VENDOR LANDSCAPE

• Some key investors in the South Africa data center market include Africa Data Centres, Digital Parks Africa, and Teraco (Digital Realty).
• The construction contractors in the country have both global and local presence and are supplying to major operators present in the market. For instance, Abbeydale, AECOM, Arup, b2 Architects, EDS Engineers, H&MV Engineering, Ingenium, ISF Group, ISG, LYT Architecture, MWK Engineering, Royal HaskoningDHV, among others.
• The South African data center market has witnessed investments from new entrants like Google, NTT Global Data Centres, Open Access Data Centres, and Vantage Data Centers.
• There is a slight fluctuation and variation in construction costs due to land-related activities.

EXISTING VS. UPCOMING DATA CENTERS

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

REPORT COVERAGE:

This report analyses the South Africa 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
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
• Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV 
• Geography
  • Johannesburg
  • Other Cities

VENDOR LANDSCAPE

• IT Infrastructure Providers: Atos, Cisco Systems, Dell Technologies, Fujitsu, Hewlett Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Juniper Networks, Lenovo, and ZTE.
• Data Center Construction Contractors & Sub-Contractors: Abbeydale, AECOM, Arup, b2 Architects, EDS Engineers, H&MV Engineering, Ingenium, ISF Group, ISG, LYT Architecture, MWK Engineering, Rider Levett Bucknall (RLB), Royal HaskoningDHV, and Tri-Star Construction.
• Support Infrastructure Providers: ABB, Alfa Laval, Caterpillar, Cummins, Delta Electronics, Eaton, EVAPCO, Enlogic, Johnson Controls, Legrand, Master Power Technologies, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, and Vertiv.
• Data Center Investors: Africa Data Centres, Digital Parks Africa, and Teraco (Digital Realty).
• New Entrants: Google, NTT Global Data Centres, Open Access Data Centres, and Vantage Data Centers.