(MENAFN- GlobeNewsWire - Nasdaq) Kenya's data center sector is expanding in Nairobi, driven by new submarine cables, cloud and colocation demand, Tier III builds, renewable energy and resilient power solutionsDublin, Sept. 22, 2026 (GLOBE NEWSWIRE) -- "Kenya Data Center Market - Investment Analysis & Growth Opportunities 2026-2031" has been added to ResearchAndMarkets.com's offering.
The Kenya data center market was valued at USD 266 million in 2025 and is projected to reach USD 805 million by 2031, expanding at a compound annual growth rate of 20.27%. Market growth is being supported by increased cloud adoption, digital transformation, improving international connectivity, renewable energy availability, and investment from colocation, hyperscale, and enterprise data center operators.
Kenya currently connects to seven operational submarine cable systems: 2Africa, Djibouti Africa Regional Express 1, Eastern Africa Submarine System, Lower Indian Ocean Network 2, PEACE Cable, SEACOM/Tata TGN-Eurasia, and The East African Marine System. Two additional systems, Africa-1 and Daraja, are expected to become operational during 2026-2027, further strengthening bandwidth availability, network resilience, and Kenya's position as an East African digital infrastructure hub.
Kenya Data Center Market Highlights
Kenya has approximately 13 operational colocation data centers, with most facilities developed in line with Tier III standards. Nairobi remains the country's leading data center destination. As of September 2025, the city had eight existing and seven upcoming facilities, including advanced colocation sites, hyperscale developments, and dedicated cloud infrastructure. The Kenyan government continues to promote renewable energy procurement as part of its strategy to attract sustainable data center investment. In July 2025, Kenya Electricity Generating Company installed a Battery Energy Storage System to support its modular data center in Nairobi and improve power stability and operational resilience. The market includes nine identified upcoming facilities across more than four locations, creating new opportunities for technology providers, engineering firms, construction contractors, and support infrastructure suppliers.
Major Data Center Investments and New Market Entrants
Established data center investors in Kenya include Africa Data Centres, iColo, a Digital Realty company, iXAfrica Data Centres, Safaricom, and Telkom Kenya. In September 2025, iXAfrica Data Centres secured financing from Rand Merchant Bank to expand its NBOX1 facility. The development was also supported by a USD 50 million investment from Helios.
New entrants are increasing competition and accelerating capacity development. Nxtra by Airtel, Cloudoon, and G42 are among the companies entering or expanding within the Kenya data center market. In September 2025, Airtel's Nxtra business began constructing a Nairobi data center expected to attract an investment of approximately KES 19 billion, equivalent to about USD 147 million. The project is planned in two phases and is expected to become operational by the first quarter of 2027.
In March 2024, G42 signed a memorandum of understanding with Kenyan developer EcoCloud to establish a large-scale green data center campus. The first phase is planned to deliver 100 MW of IT capacity, with a long-term ambition to scale to 1 GW. If completed as planned, the campus would rank among the largest proposed data center developments in Africa.
Research Coverage
The Kenya data center market report evaluates investments by colocation, hyperscale, and enterprise operators. It provides market sizing and forecasts based on investment value, facility area, power capacity, and colocation revenue. The research covers 13 existing facilities and nine upcoming developments across Nairobi and other Kenyan locations.
The report also assesses Kenya's colocation market revenue from 2022 through 2031, including retail and wholesale colocation revenue and pricing. Existing and upcoming facilities are compared by data center area and IT load capacity, while investment forecasts are classified across IT infrastructure, electrical systems, mechanical systems, cooling, and general construction services.
Market segmentation includes:
IT infrastructure: servers, storage systems, and network infrastructure. Electrical infrastructure: UPS systems, generators, transfer switches, switchgear, power distribution units, and related equipment. Mechanical infrastructure: cooling systems, rack cabinets, and associated mechanical equipment. Cooling systems: CRAC and CRAH units, chillers, cooling towers, condensers, dry coolers, and other cooling technologies. General construction: core and shell development, installation and commissioning, engineering and building design, fire detection and suppression, physical security, and data center infrastructure management. Tier standards: Tier I and Tier II, Tier III, and Tier IV facilities.
Kenya Data Center Vendor Landscape
Prominent IT infrastructure providers operating in the market include Arista Networks, Cisco, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, NetApp, and NVIDIA. Key support infrastructure providers include ABB, Caterpillar, Cummins, Delta Electronics, Eaton, Legrand, Schneider Electric, Siemens, STULZ, and Vertiv.
The construction and engineering landscape includes Arup, Copy Cat Group, Crovik Technologies, East Africa Solutions, Egypro, Future-tech, Gruppo ICM, HubTech, Kinetic Controls, Remax Consult, Tetra Tech, Turner & Townsend, Westwood Management, and X2X Group. These companies support facility design, construction, commissioning, power deployment, cooling implementation, security, and operational readiness.
Why Purchase This Research?
Access forecasts for Kenya data center market investment, facility area, power capacity, and colocation revenue. Evaluate existing and upcoming data centers across Nairobi and other locations. Assess retail and wholesale colocation revenue, pricing, and growth prospects through 2031. Identify market trends, investment opportunities, growth constraints, and competitive developments. Review the business operations and offerings of leading investors, technology suppliers, contractors, and infrastructure providers. Understand the demand and supply factors shaping Kenya's rapidly expanding digital infrastructure sector.
The research addresses the principal factors driving the Kenya data center market, the additional power capacity expected through 2031, and the market's projected size and growth trajectory. It provides investors, operators, suppliers, and other stakeholders with actionable insight into one of Africa's fastest-growing data center markets.
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