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Africa Data Center Market Landscape 2024-2029

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    Report

  • 99 Pages
  • April 2024
  • Region: Africa
  • Arizton
  • ID: 5527056
1h Free Analyst Time
1h Free Analyst Time

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The Africa data center market by investment is expected to grow at a CAGR of 11.65% from 2023 to 2029.

KEY TRENDS

Government Support for Data Center Development Will Drive The Market Growth

  • African governments are working on improving digital infrastructure by supporting digitalization and offering tax incentives. Creating Free Trade Zones (FTZs) and Special Economic Zones (SEZs) will encourage innovative technologies, boost investments in data centers, and promote the overall progress of technologies in the region.
  • In February 2023, the government of South Africa introduced the data-driven economy program to help businesses use data more effectively. The government offers financial support to encourage businesses to embrace data-driven approaches and grow more effectively.
  • In addition, policies and regulations on the local storage of sensitive data will boost the digital economy in several African countries. Most data is currently stored in offshore data centers. For example, the Nigerian government has mandated the local storage of data about sectors such as oil and gas, financial services, and the public sector.

Growing Smart City Developments Will Drive the Demand for Advanced Technologies in the Market

  • As of 2023, most countries, including South Africa, Kenya, Nigeria, Egypt, Ethiopia, Morocco, Ghana, and Algeria, account for an average internet penetration above 64%. Africa's central location market is a crucial area for undersea cable landing stations, enhancing global connectivity and creating large-scale smart cities. As a smart city grows, more data will be generated, augmenting the need for storage and computing power. This demand will drive the establishment of edge data centers for High-Performance Computing (HPC), making the region more commercially appealing and attractive for investors.
  • As smart cities progress, advanced technologies, including 5G, IoT, and AI, will enhance internet speed and data flow. This surge in connectivity is expected to boost the Africa data center market. With the smart city initiatives gaining momentum, more investors are estimated to enter the data center market and invest in data center infrastructure.

SEGMENTATION INSIGHTS

  • The Africa data center market primarily sees switches with up to 40GbE ports, particularly in IT infrastructure. As cloud data centers expand, demand for switches with ports exceeding 40GbE is anticipated to increase. Additionally, with the growing need for sophisticated infrastructure, the uptake of flash storage devices and blade servers is expected to rise in the upcoming years.
  • In the coming years, sustainability mandates are anticipated to drive the adoption of generators in the Africa data center market that utilize sustainable fuels like hydrotreated vegetable oils, among others. This trend is expected to be followed by increased demand for UPS systems equipped with lithium-ion batteries and other types.
  • The industry is poised to see the ongoing development of greenfield buildings in various countries where abundant land is available for industrial development. The entry of new global data center operators and the increasing expansion of existing operators in the region are also expected to attract several new global contractors.

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

Segmentation by Tier Standard

  • Tier I & II
  • Tier III
  • Tier IV

GEOGRAPHICAL ANALYSIS

  • The Africa data center market is poised for significant growth, driven by technology advancements, increased digitalization, and strategic government initiatives.
  • South Africa is emerging as a major global consumer market due to its growing population, increasing disposable incomes, and expanded access to technology.
  • The data center industry in Kenya is undergoing significant growth, driven by enhanced internet access, robust information and communication technology (ICT) infrastructure, and expanded services.
  • 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. Government initiatives and the country's strategic location are fueling this growth.
  • Egypt's data center industry is emerging as a key player in the Africa data center market, driven by its proximity to Europe, advancing digitalization, development of industrial land, and enhanced fiber connectivity, among other factors.
  • Ethiopia's data center industry is driven by the increasing use of digital platforms, adoption of advanced technologies such as IoT and big data, growth in an AI-driven digital economy, enhanced 5G network connectivity, and rise in internet users, particularly social media and mobile devices. These rapidly boost data traffic, escalating demand for data centers in the upcoming years.
  • Other country markets, including Morocco, Ghana, Algeria, Cameroon, Angola, Uganda, Namibia, Zambia, Senegal, Rwanda, Mozambique, and Botswana, are also promising. Morocco currently leads with the most substantial data center facilities. Still, demand is expected to surge across these nations, driving significant regional data center capacity growth in the upcoming years.

Segmentation by Geography

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

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 are driving the availability of advanced IT infrastructure in the market.
  • The Africa data center industry has several regional and global contractors and subcontractors, such as Atkins, Orascom Construction, Arup, Abbeydale Projects, REDCON Construction, Raya Information Technology, and others.

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
  • Raya Network Services
  • REDCON Construction
  • Royal HaskoningDHV
  • Shaker Group
  • Sterling & Wilson
  • Summit Technology Solutions
  • Tri-Star Construction
  • United Egypt
  • Westwood Management

Data Center Investors

  • 21st Century Technologies
  • Africa Data Centres
  • Airtel Africa
  • Digital Parks Africa
  • Digital Realty
  • Equinix
  • Galaxy Backbone
  • IXAFRICA Data Centre
  • Medallion
  • NTT Data
  • Open Access Data Centres (OADC)
  • Paratus
  • Rack Centre
  • Raya Data Center
  • Raxio Data Centres
  • Telecom Egypt
  • wingu.africa
  • Vantage Data Centers

New Entrants

  • Cloudoon
  • Gulf Data Hub
  • Kasi Cloud
  • Khazna Data Centers

KEY QUESTIONS ANSWERED

1. How big is the Africa data center market?
2. What is the growth rate of the Africa data center market?
3. What is the estimated market size in terms of area in the Africa data center market by 2029?
4. What are the key trends in the Africa data center industry?
5. How many MW of power capacity is expected to reach the Africa data center market by 2029?

Table of Contents

1. About the Analyst2. Data Center Capabilities3. What's Included4. Segments Included5. Research Methodology6. Market at Glance7. Premium Insights
8. Investment Opportunities
8.1. Investment: Market Size & Forecast
8.2. Area: Market Size & Forecast
8.3. Power Capacity: Market Size & Forecast
9. Market Dynamics
9.1. Market Opportunities & Trends
9.2. Market Growth Enablers
9.3. Market Restraints
9.4. Site Selection Criteria
10. Infrastructure Segmentation
10.1. IT Infrastructure
10.2. Electrical Infrastructure
10.3. Mechanical Infrastructure
10.4. Cooling Systems
10.5. Cooling Techniques
10.6. General Construction
11. Tier Standards Segmentation12. Geography Segmentation
13. Africa
13.1. Market Snapshot & Key Highlights
13.2. Data Center Market by Investment
13.3. Data Center Market by Infrastructure
13.4. Data Center Market by Area
13.5. Data Center Market by Power Capacity
13.6. Data Center Market by Support Infrastructure
13.7. Data Center Market by IT Infrastructure
14. South Africa
14.1. Key Investors & Investments
14.2. Market by Investment
14.3. Key Area, Investment Cost & Land Pricing
14.4. Market by Area
14.5. Renewable Energy Adoption
14.6. Market by Power Capacity
14.7. Key Support Infrastructure Adoption
14.8. Market by Infrastructure
15. Kenya
15.1. Key Investors & Investments
15.2. Market by Investment
15.3. Key Sezs, Investment Cost & Land Pricing
15.4. Market by Area
15.5. Renewable Energy Adoption
15.6. Market by Power Capacity
15.7. Key Support Infrastructure Adoption
15.8. Market by Infrastructure
16. Nigeria
16.1. Key Investors & Investments
16.2. Market by Investment
16.3. Key Sezs & Land Acquisition
16.4. Market by Area
16.5. Renewable Energy Adoption
16.6. Market by Power Capacity
16.7. Key Support Infrastructure Adoption
16.8. Market by Infrastructure
17. Egypt
17.1. Key Investors & Investments
17.2. Market by Investment
17.3. Key Area, Investment Cost & Land Pricing
17.4. Market by Area
17.5. Renewable Energy Adoption
17.6. Market by Power Capacity
17.7. Key Support Infrastructure Adoption
17.8. Market by Infrastructure
18. Ethiopia
18.1. Key Investors & Investments
18.2. Market by Investment
18.3. Key Area & Land Acquisition
18.4. Market by Area
18.5. Renewable Energy Adoption
18.6. Market by Power Capacity
18.7. Key Support Infrastructure Adoption
18.8. Market by Infrastructure
19. Other African Countries
19.1. Key Investors & Investments
19.2. Market by Investment
19.3. Key Sezs & Land Development
19.4. Market by Area
19.5. Renewable Energy Adoption
19.6. Market by Power Capacity
19.7. Key Support Infrastructure Adoption
19.8. Market by Infrastructure
20. Market Participants
20.1. IT Infrastructure Providers
20.2. Support Infrastructure Providers
20.3. Data Center Contractors & Subcontractors
20.4. Data Center Investors
20.5. New Entrants
21. Quantitative Summary
22. Appendix
22.1. Abbreviations
22.2. Definitions
22.3. Segmental Coverage

Companies Mentioned

  • Arista Networks
  • Atos
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Fujitsu
  • Hewlett Packard Enterprise (HPE)
  • Hitachi Vantara
  • Huawei Technologies
  • IBM
  • Inspur
  • Juniper Networks
  • Lenovo
  • NetApp
  • Oracle
  • 4energy
  • ABB
  • Caterpillar
  • Cummins
  • Delta Electronics
  • EATON
  • EVAPCO
  • Enlogic
  • Legrand
  • Master Power Technologies
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • STULZ
  • Vertiv
  • 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
  • Raya Network Services
  • REDCON Construction
  • Royal HaskoningDHV
  • Shaker Group
  • Sterling & Wilson
  • Summit Technology Solutions
  • Tri-Star Construction
  • United Egypt
  • Westwood Management
  • 21st Century Technologies
  • Africa Data Centres
  • Airtel Africa
  • Digital Parks Africa
  • Digital Realty
  • Equinix
  • Galaxy Backbone
  • IXAFRICA Data Centre
  • Medallion
  • NTT Data
  • Open Access Data Centres (OADC)
  • Paratus
  • Rack Centre
  • Raya Data Center
  • Raxio Data Centres
  • Telecom Egypt
  • wingu.africa
  • Vantage Data Centers
  • Cloudoon
  • Gulf Data Hub
  • Kasi Cloud
  • Khazna Data Centers

Methodology


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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