(MENAFN- GlobeNewsWire - Nasdaq) Key trends driving growth in Africa's data center market include government support through digital infrastructure development and tax incentives, expansion of submarine and inland connectivity, and rising smart city projects. Demand for advanced technologies such as AI, 5G, and IoT is fueling market expansion, with Morocco, Kenya, and Nigeria leading developments. Enhanced local data storage regulations and eco-friendly practices are also shaping the market landscape.Dublin, April 24, 2025 (GLOBE NEWSWIRE) -- The "Africa Data Center Market Landscape 2025-2030" report has been added to ResearchAndMarkets.com's offering.
The Africa Data Center Market was valued at USD 3.49 Billion in 2024, and is projected to reach USD 6.81 Billion by 2030, rising at a CAGR of 11.79%.
GEOGRAPHICAL ANALYSIS
Several countries in the African data center market are experiencing significant growth, driven by a combination of technology advancements, increased digitalization, and government support. Johannesburg and Cape Town are the main hubs for development in South Africa data center. Additionally, other areas like Centurion, Durban, and Port Elizabeth are also seeing significant growth in data center development. The Kenyan government offers tax incentives for investments in special economic zones, including around 10% corporate tax exemption for the first ten years, and over 15% exemption after the ten years. Nigeria is emerging as one of Africa's fastest-growing markets after South Africa, with increasing demand for data centers expected in the upcoming years. Nigeria has strong connectivity as it consists of around seven cables connecting the country to other African nations and one upcoming cable is currently being deployed. The data center market in Egypt is emerging as one of the key players in the Africa data center market, driven by its close proximity to Europe, advancing digitalization, availability of industrial land and affordable land and electricity prices, and enhanced fiber connectivity. Other country markets, including Ethiopia, Morocco, Ghana, Algeria, Cameroon, Angola, Uganda, Namibia, Zambia, Senegal, Rwanda, Mozambique, Botswana, and others are also witnessing significant data center investments. The demand is expected to surge across these nations, driving significant growth in regional data center capacity in the upcoming years. The Moroccan government has various programs to encourage investment, including the Hassan II fund, the Industrial and Investment Development Fund (FDII), Casablanca Finance City, and Industrial Acceleration Zones.
AFRICA DATA CENTER MARKET KEY TRENDS
Africa Data Center Market Key Trends Government Support for Data Center Development
African governments are prioritizing digital infrastructure with initiatives such as digitalization incentives and Free Trade Zones to attract data center investments. In 2024, Morocco launched the Digital Morocco 2030 plan, which involves an investment of USD 1.1 billion aimed at boosting technology infrastructure and Morocco's ranking as a digital leader. Regulations like South Africa's Protection of Personal Information Act are ensuring secure and local storage of sensitive data, driving digital economy growth.
Expansion of Submarine Cable and Inland Connectivity
Africa is a hub for submarine cable stations crucial for global connectivity, with South Africa, Nigeria, and Kenya leading developments. Telecom Namibia's 2024 launch of a cable landing in Swakopmund connects Africa to Google's Equiano subsea cable, enhancing regional connectivity.
Growing Smart City Developments
The increase in smart city projects is fostering demand for technologies like 5G, IoT, and AI, driving the data center market forward. Kenya's Konza Technopolis, progressing in 2024 with local and international support, aims to boost Kenya's GDP through a digital economy.
Rising Artificial Intelligence
Africa holds 2.5% of the global AI market. Data centers are advancing to support AI, with innovations from companies like Africa Data Centres and Digital Realty. In 2024, Teraco began constructing the JB7 data center, designed to handle AI workloads with advanced cooling technologies. Kenya's ICT Ministry launched a National AI Strategy to foster AI innovation and governance.
SEGMENTATION INSIGHTS
The Africa data center market, particularly in terms of IT infrastructure, is primarily witnessing the use of switches with up to 100 GbE ports. As the development of hyperscale data centers expands across the region, the demand for switches with ports exceeding 100 GbE is projected to rise significantly. Additionally, with the growing demand for well-developed infrastructure, the adoption of flash storage devices and blade servers is expected to increase in the forecast period in Africa. In the upcoming years, sustainability practices are expected to encourage the use of generators powered by eco-friendly fuels like hydrotreated vegetable oils in the Africa data center market. This shift will increase demand for UPS systems that use lithium-ion batteries and other energy-efficient options. As enterprises across various industries are embracing artificial intelligence, data center operators are investing significantly to develop AI-ready data center facilities to respond to the growing demands for AI workloads across the region. To manage the heat produced by servers in AI data centers, traditional cooling techniques are insufficient. Therefore, data center facilities will be equipped with liquid cooling techniques to support AI workloads.
AFRICA DATA CENTER MARKET VENDOR LANDSCAPE
The Africa data center market has the presence of IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, IBM, NetApp,Oracle, and others that provide advanced IT infrastructure in the market. The Africa data center market has a presence of several regional and global contractors and subcontractors, such as AtkinsRealis, Arup, Abbeydale, CAP DC, Copycat Group, Edarat Group, JLB Architects, REDCON Construction, Raya Network Services, and others, which provide construction, installation, engineering and commissioning services for the construction of data center facilities across the region. The Africa data center market has the presence of several global support infrastructure providers that will increase its competitiveness in the market. Some of the support infrastructure vendors present in the Africa data center market include ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Rittal, Rolls-Royce, Schneider Electric, Siemens, STULZ, Vertiv, and others.
IT Infrastructure Providers
Arista Networks Atos Broadcom Cisco Systems Dell Technologies Fujitsu Hewlett Packard Enterprise (HPE) Hitachi Vantara Huawei Technologies IBM Inspur Group Juniper Networks Lenovo NetApp Oracle
Prominent Support Infrastructure Providers
4energy Group ABB Caterpillar Cummins Delta Electronics EATON EVAPCO Legrand Master Power Technologies Rittal Rolls-Royce Schneider Electric Siemens STULZ Vertiv
Prominent Data Center Construction Contractors
Abbeydale Arup AtkinsRealis b2 Architects CAP DC Chess Enterprises COPYCAT GROUP Eastra Solutions Edarat Group EDS Engineers Egypro H&MV Engineering Ingenium Interkel JLB Architects MWK Engineering Orascom Construction REDCON Construction Raya Network Services Royal HaskoningDHV Shaker Group Sterling & Wilson Summit Technology Solutions Tri-Star Construction United For Technology Solutions Westwood Management
Data Center Investors
21st Century Technologies Africa Data Centres Airtel Africa Digital Parks Africa Digital Realty Equinix Galaxy Backbone IXAFRICA Data Centre N+ONE NTT Data Open Access Data Centres (OADC) PAIX Paratus Namibia Rack Centre Raxio Data Centres Raya Data Center Telecom Egypt Vantage Data Centers
New Entrants
Cloudoon Kasi Cloud Kemet Data Center (Intro Technology and Oman Data Park) Khazna Data Centers Gulf Data Hub
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 145 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value (USD) in 2024 | $3.49 Billion |
| Forecasted Market Value (USD) by 2030 | $6.81 Billion |
| Compound Annual Growth Rate | 11.7% |
| Regions Covered | Africa |
Report Scope:
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 PDUs 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
Segmentation by General Construction
Core & Shell Development Installation & Commissioning Services Engineering & Building Design Fire Detection & Suppression Physical Security DCIM
Segmentation by Tier Standard
Tier I & II Tier III Tier IV
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African Data Center Market
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