Africa Data Center Market Landscape 2023-2028: Public-Private Partnerships In Digital Infrastructure Leading To Increased Demand


(MENAFN- PR Newswire) DUBLIN, July 26, 2023 /PRNewswire/ -- The "africa data center market landscape 2023-2028" report has been added to
ResearchAndMarkets.com's offering.

The Africa data center market is experiencing remarkable growth and is poised to achieve a value of $4.92 billion by 2028, compared to $2.74 billion in 2022, representing a robust CAGR of 10.25%.

The market's focus on IT infrastructure is evident, with a significant rise in demand for switches with up to 40GbE ports, and the anticipated growth in cloud data centers is expected to further drive demand for switches with ports of over 40GbE. With the rising need for advanced infrastructure, the adoption of flash storage devices and blade servers is predicted to surge in the coming years.

South Africa emerges as a dominant force in the region's data center investments, closely followed by promising markets like Nigeria and Kenya. Notably, Egypt is rapidly emerging as a hotspot for regional investments, attracting significant attention from major African investors keen on developing data centers. Furthermore, other markets, including Ethiopia and Ghana, are also poised for growth, responding to the escalating demand for data centers in the region.

This thriving industry includes key IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco System, NetApp, IBM, and others, who are instrumental in driving the availability of advanced IT infrastructure in the market. Additionally, sustainability is becoming a pivotal factor, with increasing demand for generators fueled by sustainable sources like hydrotreated vegetable oil and a rise in the adoption of UPS systems with lithium-ion batteries and other eco-friendly alternatives.

As the industry gains momentum, greenfield buildings are sprouting across multiple countries, taking advantage of the ample availability of land. This progress has also attracted new global contractors, eager to make their mark in the region following the entry of prominent global operators.

The Africa data center market promises an exciting trajectory with a focus on cutting-edge technology and sustainable practices, attracting significant investments and driving digital transformation across the continent.

KEY TRENDS

Governmental Support for Special Economic Zones (SEZs): Local governments in various African countries are actively focusing on developing special economic zones, including free trade zones, industrial parks, high-tech parks, and business service parks. These SEZs are designed to stimulate economic growth, attract foreign investments, and create employment opportunities. As a result, the development of these zones is likely to drive the demand for data centers as businesses seek to establish their operations in these strategic locations.

Public-Private Partnerships in Digital Infrastructure: Governments in South Africa and Kenya have forged partnerships with private entities to develop digital infrastructure, leading to increased demand for data centers in the region. Such collaborations are instrumental in fostering technological advancements and the adoption of innovative technologies that drive the growth of data center investments.

Governmental Support for Digitalization and Tax Incentives: African governments are actively supporting digitalization efforts and providing tax incentives to encourage investments in data center facilities. These initiatives are expected to accelerate the development of data centers in the region and attract more stakeholders to participate in the industry.

Smart City Initiatives and Urbanization: Local governments in Africa are funding smart city initiatives to promote the adoption of cutting-edge technologies such as IoT, Big Data, and Artificial Intelligence. Rapid urbanization, especially among the low-income population, is driving the need for technology-driven solutions to address the challenges posed by urban growth. This development is expected to generate significant data generation, leading to higher demand for data storage and computation capabilities, thereby increasing the demand for edge data centers for high-performance computing (HPC).

Commercial Attractiveness and Increased Market Participants: The development of smart cities and the growing adoption of advanced technologies are making the region commercially attractive to various organizations. As the demand for data centers rises, more businesses and stakeholders are expected to enter the data center industry in Africa, fostering further growth and competition in the market.

VENDOR LANDSCAPE

IT INFRASTRUCTURE PROVIDERS

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise (HPE)
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Inspur
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle

Prominent Support Infrastructure Providers

  • 4energy
  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • EATON
  • EVAPCO
  • Enlogic
  • Legrand
  • Master Power Technologies
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • STULZ
  • Vertiv

Prominent Data Center Construction Contractors

  • Abbeydale
  • Advanced Vision Morocco
  • ARSMAGNA
  • Arup
  • Atkins
  • b2 Architects
  • CAP DC
  • Chess Enterprises
  • Copy Cat Group
  • Eastra Solutions
  • Edarat Group
  • EDS Engineers
  • Egypro
  • H&MV Engineering
  • Ingenium
  • Interkel
  • JLB Architects
  • MWK Engineering
  • Orascom Construction
  • Royal HaskoningDHV
  • Shaker Group
  • Sterling & Wilson
  • Summit Technology Solutions
  • Tri-Star Construction
  • United Egypt
  • Westwood Management

Data Center Investors

  • 21st Century Technology
  • Africa Data Centres
  • Digital Parks Africa
  • Galaxy Backbone
  • icolo.io (Digital Realty)
  • IXAfrica
  • MainOne
  • Medallion Communications
  • NTT Global Data Centers
  • Paratus Namibia
  • Rack Centre
  • Raxio Data Centres
  • Telecom Egypt
  • Wingu

New Entrants

  • Open Access Data Centres (OADC)
  • Nxtra by Airtel
  • Cloudoon
  • Kasi Cloud
  • Google
  • Vantage Data Center

SEGMENTATION INSIGHTS

Segmentation by Infrastructure

  • IT Infrastructure
  • Electrical Infrastructure
  • Mechanical Infrastructure
  • General Construction

Segmentation by IT Infrastructure

  • Server Infrastructure
  • Storage Infrastructure
  • Network Infrastructure

Segmentation by Electrical Infrastructure

  • UPS Systems
  • Generators
  • Transfer Switches & Switchgear
  • Power Distribution Units
  • Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

  • Cooling Systems
  • Racks
  • Other Mechanical Infrastructure

Segmentation by Cooling Systems

  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers, and Dry Coolers
  • Other Cooling Units

Segmentation by Cooling Techniques

  • Air-based Cooling Technique
  • Liquid-based Cooling Technique

Segmentation by General Construction

  • Core & Shell Development
  • Installation & Commissioning Services
  • Engineering & Building Design
  • Physical Security
  • Fire Detection & Suppression
  • DCIM/BMS Solutions

Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

GEOGRAPHICAL ANALYSIS

  • Africa
  • South Africa
  • Kenya
  • Nigeria
  • Egypt
  • Ethiopia
  • Other African Countries

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