Africa Data Center Construction Market Investment to Reach $3.06 Bn by 2030
"Africa Data Center Construction Market Research Report by Arizton"
According to Arizton's latest research report, the Africa data center construction market is growing at a CAGR of 15.94% during 2024-2030.
Report Scope:
Market Size -Investment (2030): $3.06 Billion
Market Size – Investment (2024): $1.26 Billion
CAGR -Investment (2024-2030): 15.94%
Market Size – Area (2030): 1,503 thousand Sq. Ft.
Market Size – Power Capacity (2030): 329 MW
Historic Year: 2021-2023
Base Year: 2024
Forecast Year: 2025-2030
Market Segmentation: Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, Cooling Technique, General Construction, Tier Standards, and Geography
The Africa data center construction market is highly competitive, with global companies like ABB, Eaton, Legrand, Schneider Electric, Siemens, Rolls-Royce, and Vertiv providing advanced electrical infrastructure to meet growing demand. Leveraging Africa's abundant solar energy, many hyperscale operators opt for renewable power to enhance sustainability. The market emphasizes energy-efficient cooling systems, adhering to ASHRAE guidelines to boost efficiency and reduce carbon emissions. Key players, including Abbeydale, EDS Engineers, Edarat Group, JLB Architects, Royal Haskoning DHV, and H&MV Engineering, ensure reliable and scalable greenfield projects with specialized expertise in design and construction.
Trends and Challenges in Africa's Data Center and Cloud Market
The demand for data center services in Africa is evolving, with on-premises investments continuing due to the lack of colocation facilities in many emerging markets. While countries like South Africa, Kenya, and Nigeria are home to most colocation data centers, many enterprises still rely on on-premises infrastructure, particularly in critical sectors like government, banking, and healthcare. However, challenges such as security threats, operational inefficiencies, and infrastructure limitations persist.
Cloud adoption is accelerating across the continent, with African companies hosting an average of 43% of their workloads in the public cloud. This growth is driven by the cloud's scalability, cost-effectiveness, and the need for businesses to compete globally. However, legal and regulatory challenges, such as data residency laws and cross-border data transfer restrictions, as well as a shortage of skilled cloud professionals, continue to hinder full cloud potential.
Despite these hurdles, the future of cloud adoption in Africa is promising, with global cloud providers like AWS, Microsoft, and Google investing heavily in local infrastructure. Additionally, government entities and large corporations are increasingly migrating their data to third-party colocation data centers. Notable examples include the $3 million contract between Huawei and United Bank for Africa (UBA), and Gold Fields' migration to AWS, indicating the growing shift towards cloud solutions.
Surge in Submarine Cable Investments Boosts Connectivity in Africa
Investment in submarine cables across Africa has surged, with governments and enterprises enhancing fiber connectivity to build robust regional networks. Key players like telecom providers and data center operators are driving this expansion, with South Africa, Nigeria, and Kenya leading in deployments. Upcoming cables like Africa-1, Medusa, and SeaMeWe-6 will further improve connectivity, enabling faster, low-latency internet. Egypt, with its strategic location and 16 submarine cables, is increasingly becoming a hub for data centers. The growth in submarine cable infrastructure is reshaping the African digital landscape, attracting global data center operators and boosting regional cooperation.
Growth of Africa Data Center Construction Market: Key Developments and Investments
The African data center construction market is rapidly expanding. Johannesburg stands out as a key hub, benefiting from competitive construction costs and a strong infrastructure network. The city is attracting more investment as demand for colocation and data storage rises. A prime example is the Equinix JN1 data center in Germiston, which is planning significant expansion to meet growing needs in the region.
In Kenya, iColo is expanding its facilities to meet the increasing demand in key locations like Mombasa and Nairobi. These facilities are essential in supporting the country's growing data management requirements. Egypt is also seeing a surge in data center developments, particularly in Cairo and other cities, driven by government-led digitalization efforts. Cairo remains the dominant hub, housing most of the country's data center facilities.
Southern Africa is also witnessing increased infrastructure growth, exemplified by the recent opening of the Raxio MZ1 facility in Mozambique. Located in the Beluluane Industrial Park near Maputo, this new facility highlights the expansion of data infrastructure in the region. These developments across Africa underscore the continent's growing role as a digital infrastructure hub and its increasing importance in the global data center market.
Infrastructure
Electrical Infrastructure
Mechanical Infrastructure
General Construction
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgear
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Cooling Systems
CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers, & Dry Coolers
Other Cooling Units
Cooling Technique
Air-based Cooling
Liquid-based Cooling
General Construction
Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS Solutions
Tier Standards
Tier I & Tier II
Tier III
Tier IV
Geography
Africa
South Africa
Kenya
Nigeria
Egypt
Other African Countries
Competitive Landscape
Prominent Data Center Support Infrastructure Providers
4energy
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
AtkinsRéalis
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
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
Medallion Communications
N+ONE
NTT DATA
Open Access Data Centres
PAIX
Paratus Namibia
Rack Centre
Raxio Data Centres
Raya Data Center
Telecom Egypt
Vantage Data Centers
Wingu.Africa
New Entrants
Cloudoon
Business Overview
Service Offerings
Kasi Cloud
Kemet Data Center (INTRO Technology and Oman Data Park)
Khazna Data Centers
Gulf Data Hub
Key Questions Answered in the Report:
How big is the Africa data center construction market?
What is the growth rate of the Africa data center construction market?
What is the estimated market size in terms of area in the Africa data center construction market by 2030?
How many MW of power capacity is expected to reach the Africa data center construction market by 2030?
What are the key trends in the Africa data center construction market?
Why Arizton?
100% Customer Satisfaction
24x7 availability – we are always there when you need us
200+ Fortune 500 Companies trust Arizton's report
80% of our reports are exclusive and first in the industry
100% more data and analysis
1500+ reports published till date
Post-Purchase Benefit
1hr of free analyst discussion
10% off on customization
About Us:
Arizton Advisory and Intelligence is an innovative and quality-driven firm that offers cutting-edge research solutions to clients worldwide. We excel in providing comprehensive market intelligence reports and advisory and consulting services.
We offer comprehensive market research reports on consumer goods & retail technology, automotive and mobility, smart tech, healthcare, life sciences, industrial machinery, chemicals, materials, I.T. and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.
Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.
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