Africa’s Booming Digital Economy Fuels Demand for Data Centers: Huge Investment Opportunities Await

The African data center market is poised for a surge, with a projected 50% capacity increase by 2026, according to a new report from the Oxford Business Group (OBG) and the Africa Data Centres Association (ADCA).

This rapid growth is driven by the continent’s thriving digital economy and surging internet adoption.

This news presents a significant opportunity for data center stakeholders. The report, titled “The Data Centres in Africa,” delves into the continent’s expanding data center ecosystem, analyzing infrastructure development, broadband expansion, and regulatory frameworks. While technical and regulatory hurdles remain, the potential rewards are substantial.

The report emphasizes two key areas for sustainable growth:

Bridging the ICT skills gap: A skilled workforce is crucial for building and managing data centers effectively. Investment in training programs will be essential to meet the growing demand for qualified personnel.

Embracing sustainability: Data centers are significant energy consumers. The report highlights the importance of incorporating sustainable practices into data center operations, such as utilizing renewable energy sources.

Speaking on this, the  Chiarman of Africa Data Centres Association (ADCA), Ayotunde Coker stresses the need for collaborative efforts to unlock Africa’s digital potential fully. He suggests initiatives like establishing special economic zones and offering renewable energy subsidies to attract investment and accelerate digital infrastructure development.

“As Africa spearheads this transformative wave,” says Coker, “data centers are emerging as the cornerstone for regional growth, powered by high-speed fiber-optic links and strategic investments.”

“We have a mix of operators, suppliers, and general industry executives. We’re driving out advocacy for the data centre industry in Africa. We want to set the scene – bringing people together, getting the industry moving faster, making sure that we get things going at scale, providing thought leadership and being seen as a great example of an industry association,” explains Coker.

The report identifies key markets like Nigeria, Kenya, Egypt, and Morocco as frontrunners, leveraging their competitive advantages to attract investment and expedite digital infrastructure development.

Karine Loehman, OBG’s managing director for Africa, echoes the optimistic outlook. “Africa is at the forefront of the digital revolution,” says Loehman, “and our latest report underscores the critical role of digital infrastructure in shaping the continent’s economic landscape.”

Co-produced by MainOne, a West African underwater communications cable business, and Paix, a provider of cloud- and carrier-neutral data center services across Africa, the report offers valuable insights for data center stakeholders seeking to capitalize on the immense growth potential within the African market.