Africa currently holds less than 2% of the global market share for co-location data centers.
This low figure is unsurprising given the continent’s challenges with energy infrastructure and a lack of supportive government policies for data center development.
Investor Interest in Africa’s Data Center Potential
Despite the lack of government backing, external investors have shown significant interest in Africa’s data center potential. Since 2022, the continent has seen the launch of 25 new data centers. Major players like Equinix and Microsoft have established facilities in Cape Town and Nairobi, respectively, while Airtel has announced plans for a data center in Kenya.
Africa Data Centres’ Expansion Plans
Africa Data Centres (ADC), a prominent telecommunications provider, has secured $108.9 million in funding to expand its operations in South Africa. The company currently operates four data centers in the country and will use the investment to boost its power capacity by 20MW, allowing for additional servers and infrastructure.
Artificial Intelligence as a Driver
The surge in data center investments across Africa may be partly fueled by the rise of artificial intelligence. AI systems demand substantial data and computational resources to function effectively, driving the need for robust data center infrastructure.
Opportunities for Growth
While these investments mark a positive trend for Africa, there’s ample room for further growth. Data from the Africa Data Centres Association reveals South Africa houses over half of the continent’s data centers, highlighting investment opportunities in other regions.