Africa Data Center Market - Industry Outlook & Forecast 2022-2027

Africa Data Center Market - Industry Outlook & Forecast 2022-2027

  • January 2022 •
  • 362 pages •
  • Report ID: 6221885 •
  • Format: PDF
In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Africa Data Center Market Report

Africa data center market witnessed investments of USD 2.6 billion in 2021 and will witness investments of USD 5.4 billion by 2027, growing at a CAGR of 12.73% during 2022-2027

The data center market in Africa is attracting significant investments in recent years, led by South Africa, Kenya, Egypt, Nigeria, and Ethiopia. In Africa, there are more than 9 data centers that have added the white floor area of around 30,000 square feet area or more each in 2021. Several country governments are taking initiatives by developing special economic zones, and industrial parks, which provide tax exemptions for data center development.

The following factors are likely to contribute to the growth of the Africa data center market –

• Growing Smart City Initiatives
• Government Support for Data Centers
• Growing Artificial Intelligence Adoption
• Migration from On-premise to Colocation & Managed Services
• Adoption of Advance IT Infrastructure


• Cloud adoption is likely to grow up to 25% annually in South Africa and expects to generate up to USD 1.5 billion by 2024. SaaS is being widely adopted among organizations in South Africa, followed by IaaS solutions in the country’s data center and networking market.
• In September 2021, Eskom, a utility firm based in South Africa, announced to invest around USD 7 billion for renewable energy plans for the next nine years. This will drive the demand in the South African data center market.
• The increase in submarine cable investment and fiber connectivity is likely to attract more data center investments in the region. South Africa has the highest number of submarine cable deployments, followed by Nigeria and Kenya.


The Africa data center market is segmented on the basis of-

• Infrastructure
• IT infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Cooling Technique
• General Construction
• Tier Standard
• Geography

• Technologies such as the cloud, big data, and IoT generate more data through high-end applications and need more efficient systems for data processing. These technologies are growing the demand for advanced IT infrastructure in the African data center market
• Enterprises prefer servers that can reduce space in the data center environment without affecting performance. The competition between branded and ODM server suppliers will continue because multiple enterprises opt for server infrastructure based on open community designs (OCP). The increasing demand for server shipments will continue to grow moderately as enterprises move to the cloud or colocation platforms for their IT infrastructure operations.
• UPS systems are being widely adopted to provide backup power for cooling systems installed in the facility. Cooling systems are essential for the smooth operations of data centers since maintaining an optimal temperature will avoid malfunctions caused by overheating. The adoption of lithium-ion batteries is likely to increase during the forecast period as their price will continue to decline.

Market Segmentation by Infrastructure

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

Market Segmentation by IT infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Market Segmentation by Electrical Infrastructure

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

Market Segmentation by Mechanical Infrastructure

• Cooling Systems
• Racks
• Other Mechanical Infrastructure

Market Segmentation by Cooling Systems

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

Market Segmentation by Cooling Technique

• Air-Based Cooling Technique
• Liquid-Based Cooling Technique

Market Segmentation by General Construction

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

Market Segmentation by Tier Standard

• Tier I & II,
• Tier III
• Tier IV


• South Africa: The market will witness the entry of global data center colocation service providers through independent data center developments and partnerships or via acquisitions by major colocation providers in the country. In 2021, Teraco Data Environments, Africa Data Centre, NTT Global Data Centers were the major data center investors
• Nigeria: The shift of industry sectors such as BFSI, education, retail, manufacturing, and others toward new technologies such as cloud and big data is likely to aid the growth of the market during the forecast period. Microsoft has partnered with the Nigerian government to launch projects in the country aimed at promoting connectivity, upskilling citizens, and increasing digitalization.

Market Segmentation by Geography

• South Africa
• Kenya
• Nigeria
• Morocco
• Egypt
• Ethiopia
• Algeria
• Ghana
• Ivory Coast
• Other African Countries


• Global cloud service providers such as AWS, Microsoft, IBM, and Oracle are expanding their presence with new cloud regions. So there is an opportunity for vendors to grow in suburban areas and fuel the demand for hyperscale data centers in Africa
• In December 2021, Equinix announced its plan to acquire MainOne data centers with a sum of around USD 320 million to expand operations in Africa.
• The new entrants have a strong opportunity with new innovative technologies of infrastructure in the Africa cloud data center. In addition, the threat of acquisitions is to be also high since global data center operators acquire existing data centers in the region.

Prominent IT Infrastructure Providers

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

Prominent Support Infrastructure Providers

• 4Energy
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• Enlogic
• Legrand
• Master Power Technologies
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• Vertiv

Prominent Data Center Construction Contractors

• Abbeydale
• Advanced Vision Morocco
• Arup
• Atkins
• B2 Architects
• Chess Enterprises
• Copy Cat Group
• Eastra Solutions
• Edarat Group
• EDS Engineers
• Egypro
• H&MV Engineering
• Ingenium Engineers
• Interkel
• JLB Architects
• MWK Engineering
• Orascom Construction
• Royal HaskoningDHV
• Shaker Group
• Sterling & Wilson
• Summit Technology Solutions
• Tri-Star Construction
• United Egypt
• Westwood Management

Prominent Data Center Investors

• Africa Data Centres
• Icolo.Io (Digital Realty)
• IXAfrica
• MainOne (MDXI)
• NTT Global Data Centers
• Paratus Namibia
• Rack Centre
• Raxio Data Centres
• Telecom Egypt
• Teraco Data Environments (Digital Realty)
• Wingu

New Data Center Investors in The Market

• Open Access Data Centres (OADC)
• Vantage Data Centers


1. What is the size and share of the Africa data center market?
2. What are the investment opportunities in the Africa data center market?
3. Who are the key investors in the Africa data center industry?
4. What are the latest trends in cloud technology which directly impact the growth of the Africa data center market?
5. What are the factors driving the data center market growth in Africa?
6. Which companies are expanding their position in the Africa data center market?

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