South Africa Data Center Market - Investment Analysis & Growth Opportunity 2025-2030
THE SOUTH AFRICA DATA CENTER MARKET SIZE WAS VALUED AT USD 2.16 BILLION IN 2024 AND IS EXPECTED TO REACH USD 3.40 BILLION BY 2030, GROWING AT A CAGR OF 7.86% DURING THE FORECAST PERIOD
THE SOUTH AFRICA DATA CENTER MARKET SIZE WAS VALUED AT USD 2.16 BILLION IN 2024 AND IS EXPECTED TO REACH USD 3.40 BILLION BY 2030, GROWING AT A CAGR OF 7.86% DURING THE FORECAST PERIOD
The South Africa Data Center Market Report Includes Size in Terms of
- IT Infrastructure: Server Infrastructure, Storage Infrastructure, and Network Infrastructure
- Electrical Infrastructure: UPS Systems, Generators, Transfer Switches & Switchgear, PDUs, and Other Electrical Infrastructure
- Mechanical Infrastructure: Cooling Systems, Racks, and Other Mechanical Infrastructure
- Cooling Systems: CRAC and CRAH Units, Chillers Units, Cooling Towers, Condensers, and Dry Coolers, and Other Cooling Units
- General Construction: Core & Shell Development, Installation & Commissioning Services, Building & Engineering Design, Fire Detection & Suppression Systems, Physical Security, and DCIM
- Tier Standard: Tier I & Tier II, Tier III, and Tier IV
- Geography: Johannesburg and Other Cities
Get Insights on 53 Existing Data Centers and 10 Upcoming Facilities across South Africa
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SOUTH AFRICA DATA CENTER MARKET REPORT SCOPE
REPORT ATTRIBUTE | DETAILS |
---|---|
MARKET SIZE (INVESTMENT) | USD 3.40 Billion (2030) |
MARKET SIZE (AREA) | 532 thousand sq. feet (2030) |
MARKET SIZE (POWER CAPACITY) | 118 MW (2030) |
CAGR - INVESTMENT (2024-2030) | 7.86% |
COLOCATION MARKET SIZE (REVENUE) | USD 850 Million (2030) |
HISTORIC YEAR | 2021-2023 |
BASE YEAR | 2024 |
FORECAST YEAR | 2025-2030 |
SOUTH AFRICA DATA CENTER MARKET SIZE
The South Africa data center market size was valued at USD 2.16 billion in 2024 and is expected to reach USD 3.40 billion by 2030, growing at a CAGR of 7.86% during the forecast period. In 2024, South Africa held the position of being the largest data center market in Africa. The vast consumer market, the supportive regulatory environment for local data storage, and the dynamic technology sector are the reasons that boost South Africa data center market growth and help it stand out as a key destination for data center investments in Africa. Among the country's leading cities for such investments are Johannesburg, followed by Cape Town, and Durban.
The development of AI is playing a critical role in encouraging digital innovation, complemented by the IoT and smart cities. Till March 2024, South Africa had ten submarine cables, with launch plans for 2 additional cables in the upcoming years. Some international players, such as Google and Meta, are investing in undersea cables to enhance connectivity. These cables are critical for boosting international bandwidth and reducing latency, making South Africa a strategic hub for global data flow and digital services in Africa. Furthermore, data centers are investing in alternative energy resources, other than the national power grids, to prevent operational disruptions due to the shortage of electricity in the country.
Investments in renewable energy partnerships and Power Purchase Agreements (PPAs) have become a trend among operators in the South Africa data center market. Investors are implementing their own power sources, such as solar farms and wind power contracts, to secure a sustainable energy supply while reducing carbon footprints. For instance, Teraco (Digital Realty) is developing its own solar farm (120 MW) in the country, while Vodacom Business has signed an energy deal with local energy firm Eskom, South Africa's state-owned power utility. Furthermore, the data center investors having an interest in South Africa are drawn by the availability of geographical space and enormous energy resource potential.
KEY HIGHLIGHTS
- The South Africa data center market became the critical focus for data center investments in 2024. Its commitment to renewable energy is playing a major role in attracting data center investments, as major technology firms seek to minimize their environmental impact.
- Johannesburg is among Africa's major cities with fully established cloud regions. It continues to be South Africa’s leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. In January 2024, Google launched its first cloud region in Johannesburg. Huawei is using its three data centers to extend AI cloud adoption in South Africa.
- As of December 2024, Johannesburg had a network of 15 data centers and 6+ upcoming data centers in the city. The city also has the presence of leading data center providers such as Vantage Data Centers, NTT DATA, Equinix, Open Access Data Centres (OADC), Teraco (Digital Realty), MTN, and Vodacom Business.
- Industrial land prices in South Africa have been growing over the recent years, especially in prime locations, owing to the robust demand and comparatively lesser supply. The average industrial land price in Cape Town varies from $120-$140 per square meter, while the average rental rate ranges around $4 per square meter. Durban and Centurion are also expected to see an increase in data center area in the year 2025.
- Sustainability has emerged as a key trend in expanding data centers across the South African data center market in 2024, driven by global environmental imperatives and local regulatory pressures. Leading players such as Microsoft, AWS, and Google are raising the bar with their sustainability targets, prompting others to follow suit to remain competitive.
- The South African government has been incentivizing data centers to implement additional alternative energy resources, to reduce dependence on the national power grids and prevent operational disruptions.
- South Africa also faces challenges in its energy sector, which include power outages and load shedding due to insufficient generation capacity. The nation’s power is heavily dependent on coal-fired plants in the energy grid. More than one-third of the nation’s 42,000 MW of electricity is generated by coal-fired power stations.
WHY SHOULD YOU BUY THIS RESEARCH?
- Market size available in the investment, area, power capacity, and colocation market revenue.
- Data center investments in the area (thousand square feet) and power capacity (MW) across cities in the country.
- A detailed study of the existing South Africa data center market landscape, an in-depth market analysis, and insightful predictions about the South Africa data center market size during the forecast period.
- Snapshot of existing and upcoming third-party data center facilities in South Africa
- Facilities Covered (Existing): 53
- Facilities Identified (Upcoming): 10
- Coverage: 27+ locations
- Existing vs. Upcoming (Data Center Area)
- Existing vs. Upcoming (IT Load Capacity)
- Data center colocation market in South Africa
- Colocation Market Revenue & Forecast (2021-2030)
- Wholesale vs. Retail Colocation Revenue (2021-2030)
- Retail Colocation Pricing
- Wholesale Colocation Pricing
- The South Africa data center landscape 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 market.
- 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.
SOUTH AFRICA DATA CENTER MARKET VENDOR LANDSCAPE
- The South Africa data center market has the presence of several colocation data center investors, such as Africa Data Centres, Digital Parks Africa, Equinix, NTT DATA, Open Access Data Centres (OADC), Teraco (Digital Realty), Vantage Data Centers, and others.
- Teraco (Digital Realty), NTT Data, Vantage Data Centers, and Africa Data Centres specialize in wholesale data center services, whereas companies such as Open Access Data Centres (OADC) focus on retail data center services.
- The majority of the Western hyperscalers are deploying facilities in the South Africa data center market. Cloud operators such as IBM, Microsoft, Oracle, AWS, and Google have all deployed facilities in South Africa.
- Microsoft is strengthening its position in the South Africa data center market by expanding its infrastructure with new data centers in the region. In March 2025, Microsoft announced its plan to spend USD 300 million on cloud and AI Infrastructure in South Africa by the end of 2027.
- Teraco (Digital Realty), provider of carrier-neutral colocation data centers and interconnection platforms, has plans to launch 4 data centers in South Africa in 2025-2026, with a cumulative investment of approximately USD 877 million.
- Being a water-scarce country, liquid cooling systems present a forthcoming challenge in South Africa, necessitating the adoption of an innovative and flexible approach for cooling technologies. The JB7 facility by Teraco (Digital Realty), which is expected to achieve completion by 2026, will feature a closed-loop chilled water system and direct free-air cooling.
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)
- Johannesburg
- Other Cities
REPORT COVERAGE:
This report analyses the South Africa data center market share. It elaborately 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
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC and CRAH Units
- Chillers Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Building & Engineering Design
- Fire Detection & Suppression Systems
- Physical Security
- DCIM
- Tier Standard
- Tier I & Tier II
- Tier III
- Tier IV
- Geography
- Johannesburg
- Other Cities
VENDOR LANDSCAPE
- IT Infrastructure Providers: Atos, Cisco, Dell Technologies, Fujitsu, Hewlett-Packard Enterprise, Hitachi Vantara, Huawei Technologies, IBM, Lenovo, and ZTE.
- Data Center Construction Contractors & Sub-Contractors: Abbeydale, AECOM, Arup, B2 Architects, EDS Engineering, 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, Johnson Controls, Legrand, Master Power Technologies, nVent, Piller Power Systems, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, and Vertiv.
- Data Center Investors: Africa Data Centres, Digital Parks Africa, Equinix, NTT DATA, Open Access Data Centres (OADC), Teraco (Digital Realty), Microsoft, Vantage Data Centers.
- New Entrants: Paratus Namibia.
TARGET AUDIENCE
- Real Estate Investment Trusts
- Construction Contractors
- Infrastructure Providers
- New Entrants
- Consultants/Consultancies/Advisory Firms
- Corporate and Government Agencies
SNAPSHOT
The South Africa data center market size is projected to reach USD 3.40 billion by 2030, growing at a CAGR of 7.86% from 2024 to 2030.
The following factors are likely to contribute to the growth of the South Africa data center market during the forecast period:
- Rise in Adoption of Cloud-based Services
- Rise in Data Center Investments
- Improvement in Connectivity via Submarine Cables
- Artificial Intelligence (AI) and IoT Drive Data Center Investments
Base Year: 2024
Forecast Year: 2025-2030
The report considers the present scenario of the South Africa data center market and its market dynamics for 2025-2030. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the industry.
The report includes the investment in the following areas:
- IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
- Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- PDUs
- Other Electrical Infrastructure
- Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
- Cooling Systems
- CRAC and CRAH Units
- Chillers Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
- General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Building & Engineering Design
- Fire Detection & Suppression Systems
- 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
- Dell Technologies
- Fujitsu
- Hewlett-Packard Enterprise
- Hitachi Vantara
- Huawei Technologies
- IBM
- Lenovo
- ZTE
Data Center Construction Contractors & Sub-Contractors
- Abbeydale
- AECOM
- Arup
- B2 Architects
- EDS Engineering
- H&MV Engineering
- Ingenium
- ISF Group
- ISG
- LYT Architecture
- MWK Engineering
- Rider Levett Bucknall (RLB)
- Royal HaskoningDHV
- Tri-Star Construction
Support Infrastructure Providers
- ABB
- Alfa Laval
- Caterpillar
- Cummins
- Delta Electronics
- Eaton
- Evapco
- Johnson Controls
- Legrand
- Master Power Technologies
- nVent
- Piller Power Systems
- Rittal
- Rolls Royce
- Schneider Electric
- Siemens
- STULZ
- Vertiv
Data Center Investors
- Africa Data Centres
- Digital Parks Africa
- Equinix
- NTT DATA
- Open Access Data Centres (OADC)
- Teraco (Digital Realty)
- Microsoft
- Vantage Data Centers
New Entrants
- Paratus Namibia
SOUTH AFRICA DATA CENTER MARKET FAQs
How big is the South Africa data center market?
What is the growth rate of the South Africa data center market?
How much MW of power capacity will be added across South Africa during 2025-2030?
Which all cities are included in the South Africa center market report?
What factors are driving the South Africa data center market?
LIST OF EXHIBITS
Exhibit 1: South Africa Data Center Market: Historical vs Present & Forecast
Exhibit 2: South Africa Data Center Market Snapshot
Exhibit 3: Existing and Upcoming Third-party Data Centers Investment in South Africa (Thousand Square Feet & MW)
Exhibit 4: Reciprocal Tariffs Imposed by the U.S. in some of Key Countries
Exhibit 5: Tariffs Imposed on the U.S. Imports by Key Trade Partners
Exhibit 6: South Africa Data Center Market Investment: Market Size & Forecast ($ Million)
Exhibit 7: Digital Data in South Africa
Exhibit 8: South Africa Data Center Market Area: Market Size & Forecast (Thousand Square Feet)
Exhibit 9: South Africa Data Center Market Power Capacity: Market Size & Forecast (MW)
Exhibit 10: Colocation Services Revenue in South Africa: Market Size & Forecast ($ Million)
Exhibit 11: Retail vs Wholesale Colocation Services Revenue in South Africa: Market Size & Forecast ($ Million)
Exhibit 12: Industry Market Share (%) of Colocation Services in South Africa
Exhibit 13: Retail vs Wholesale Colocation Pricing
Exhibit 14: South Africa Data Center Market by IT Infrastructure: Market Size & Forecast ($ Million)
Exhibit 15: South Africa Data Center Market by Electrical Infrastructure: Market Size & Forecast ($ Million) 52
Exhibit 16: South Africa Data Center Market by Mechanical Infrastructure: Market Size & Forecast ($ Million)
Exhibit 17: South Africa Data Center Market by Cooling Systems: Market Size & Forecast ($ Million)
Exhibit 18: Break Up of Data Center Construction Cost
Exhibit 19: South Africa Data Center Market by General Construction: Market Size & Forecast ($ Million)
Exhibit 20: South Africa Data Center Market by Tier Standards: Market Size & Forecast ($ Million)
Exhibit 21: Johannesburg Data Center Market Investment: Market Size & Forecast ($ Million)
Exhibit 22: Johannesburg Data Center Market Area: Market Size & Forecast (Thousand Square Feet)
Exhibit 23: Johannesburg Data Center Market Power Capacity: Market Size & Forecast (MW)
Exhibit 24: Other Cities Data Center Market Investment: Market Size & Forecast ($ Million)
Exhibit 25: Other Cities Data Center Market Area: Market Size & Forecast (Thousand Square Feet)
Exhibit 26: Other Cities Data Center Market Power Capacity: Market Size & Forecast (MW)
LIST OF TABLES
Table 1: List of Key Upcoming Data Center Projects in South Africa
Table 2: List of Existing Cloud Regions along with Availability Zones in South Africa
Table 3: List of Key Upcoming Submarine Cables
Table 4: South Africa Data Center Market Size & Forecast (2021-2030)
Table 5: South Africa Data Center Colocation Service Revenue by Colocation Type ($ Million) (2021-2030)
Table 6: South Africa Data Center Market by Infrastructure ($ Million) (2021-2030)
Table 7: South Africa Data Center Market by IT Infrastructure ($ Million) (2021-2030)
Table 8: South Africa Data Center Market by Electrical Infrastructure ($ Million) (2021-2030)
Table 9: South Africa Data Center Market by Mechanical Infrastructure ($ Million) (2021-2030)
Table 10: South Africa Data Center Market by Cooling Systems ($ Million) (2021-2030)
Table 11: South Africa Data Center Market by General Construction ($ Million) (2021-2030)
Table 12: South Africa Data Center Market by Tier Standards ($ Million) (2021-2030)
Table 13: Johannesburg Data Center Market Size & Forecast (2021-2030)
Table 14: Other Cities Data Center Market Size & Forecast (2021-2030)
1. EXISTING & UPCOMING THIRD-PARTY DATA CENTERS IN SOUTH AFRICA
1.1. Data Center Snapshot
1.2. Data Center Snapshot By Cities
1.3. Existing & Upcoming Data Center Supply
1.4. List of Upcoming Data Center Projects in South Africa
2. INVESTMENT OPPORTUNITIES IN SOUTH AFRICA
2.1. Microeconomic & Macroeconomic Factors for South Africa Market
2.2. Impact of the ongoing Tariff War
2.3. Investment Opportunities in South Africa
2.4. Digital Data in South Africa
2.5. Market Investment by Area
2.6. Market Investment by Power Capacity
3. DATA CENTER COLOCATION MARKET IN SOUTH AFRICA
3.1. Colocation Services Market in South Africa
3.2. Demand Across Several Industries in South Africa
3.3. Retail vs Wholesale Data Center Colocation
3.4. Colocation Pricing (Quarter Rack, Half Rack & Full Rack) & Add-ons
4. MARKET DYNAMICS
4.1. Market Enablers
4.2. Market Trends
4.3. Market Restraints
5. MARKET SEGMENTATION
5.1. IT Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4. General Construction: Market Size & Forecast
6. TIER STANDARDS INVESTMENT
6.1. Tier I & II
6.2. Tier III
6.3. Tier IV
7. GEOGRAPHY SEGMENTATION
7.1. Johannesburg
7.2. Other Cities
8. KEY MARKET PARTICIPANTS
8.1. IT Infrastructure Providers
8.2. Construction Contractors & Sub-Contractors
8.3. Support Infrastructure Providers
8.4. Data Center Investors
8.5. New Entrants
9. APPENDIX
9.1. Market Derivation
9.2. Site Selection Criteria
9.3. Quantitative Summary
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Frequently Asked Questions
How big is the South Africa data center market?
What is the growth rate of the South Africa data center market?
How much MW of power capacity will be added across South Africa during 2025-2030?
Which all cities are included in the South Africa center market report?
What factors are driving the South Africa data center market?