South Africa to emerge as a Hub for Public and Private Cloud Hosting Services

Oct 16, 2019

The South African data center market is witnessing an increased adoption of energy-efficient power infrastructure.

Arizton’s recent market research report on the Africa data center market provides comprehensive industry analysis, trend forecasts, and competitive analysis. The study segments the market by IT infrastructure (server, storage, and network devices), electrical infrastructure (UPS, generators, rack power distribution units (PDU), transfer switches and switchgears, and other), mechanical infrastructure (cooling systems, racks, and other mechanical infrastructure), cooling systems (CRAC & CRAH, chiller units, cooling towers and dry coolers, economizer and evaporative coolers, and other cooling units), cooling technique (air-based cooling technique and liquid-based cooling technique), general construction (building development, installation and commissioning services, building design, physical security, and DCIM), tier standards (Tier I & II, Tier III, and Tier IV), and geography (South Africa, Nigeria, Kenya, and Other African Countries).

The African data center market is expected to grow at a CAGR of over 13% during the period 2018−2024.

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 The increased penetration of the internet and smartphones and the improvement in broadband connectivity are aiding the data center growth across Africa. The cloud computing market in Africa reached around $1.5 billion in 2018.

The African data center market is divided into five major segments – IT infrastructure, electrical infrastructure, mechanical infrastructure, cooling systems, cooling technique, general construction, tier standards, and geography. The research report offers market share analysis in terms of area (square feet) and power capacity (Mega Watt) during the forecast period.

IT infrastructure is growing at a highest CAGR in African data center market by Infrastructure

The IT infrastructure market has evolved significantly in the last decade with the inception of technologies such as cloud, big data, and IoT. The data center IT infrastructure market is also growing because of the increased consumption of internet-based services in Africa. These services include e-commerce, online video streaming, and social media. The African data center market is witnessing an increase in the procurement of high-end infrastructure solutions as the number of internet-based applications is continuing to grow in the market. In terms of storage, the use of hard disk drives will continue to dominate, with the penetration of hybrid arrays likely to be higher in the next few years than all-flash storage solutions. The adoption of IT infrastructure highly depends on digitalization initiatives by governments and enterprises in the African continent, with more revenue likely to be generated from Kenya, Nigeria, and South Africa during the forecast period.

South Africa witnessed major Data Centers Developments

South Africa is rapidly emerging as a center for public and private cloud hosting services, which are expected to increase data center developments in the country. Due to the increasing number of smartphone users and a strong internet penetration in the country, there are high opportunities for mega investments during the forecast year. Manufacturing, financial services, and healthcare sectors are among the major contributors to data center investments as these sectors are rapidly adopting cloud computing. Submarine Cable connectivity is also playing a major role in South African Data center market. In terms of area, data centers development in South Africa reached around 70,000 square feet in 2018. The market is witnessing an increased adoption of energy-efficient power infrastructure in South Africa as the competition and demand are driving operators to construct facilities that can support IT loads of over 10 MW.

Arista, Atos, Broadcom, Cisco, Dell Technologies, Hewlett Packard Enterprise (HPE), Huawei, IBM, Lenovo, and NetApps are the prominent critical (IT) infrastructure providers in African data center market are. ABB, Caterpillar, Cummins, Eaton, HITEC Power Protection, KINOLT (EURO-DIESEL), Legrand Group, MTU Onsite Energy (ROLLS-ROYCE Power Systems AG), Rittal, Schneider Electric, Stulz, SHENZHEN ENVICOOL TECHNOLOGY, and Vertiv are the prominent support infrastructure providers in African data center market. Aveng Grinaker, Atkins, Concor, Edarat Group, ETIX EVERYWHERE, Future-Tech, Harinsa Qatar, and Huawei are the prominent data center contractors in African data center market. CLOUD EXCHANGE, Icolo.io, Internet Solutions, MainOne, MEDASYS, MEDALLION COMMUNICATIONS, and Teraco Data Environments are the prominent data center investors in the African data center market.

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The complete overview of the latest market research report on the Africa data center market by Arizton is now available.

The report offers a detailed study of major trends, drivers, challenges, and provides the market size and forecast for major geographical regions and key countries.

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