Market Size of africa data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 0.69 Thousand MW |
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Market Volume (2029) | 1.23 Thousand MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 12.34 % |
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Largest Share by Country | South Africa |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
Africa Data Center Market Analysis
The Africa Data Center Market size is estimated at 0.69 thousand MW in 2024, and is expected to reach 1.23 thousand MW by 2029, growing at a CAGR of 12.34%. Further, the market is expected to generate colocation revenue of USD 750.2 Million in 2024 and is projected to reach USD 1,709.6 Million by 2029, growing at a CAGR of 17.91% during the forecast period (2024-2029).
USD 740.24 Million
Market Size in 2024
USD 1,709.6 Million
Market Size in 2029
35%
CAGR (2017-2023)
17.9%
CAGR (2024-2029)
IT Load Capacity
685.76 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to reach 1,226.8 MW by 2029. By 2025, Africa is expected to account for more than 600 million mobile connections, with 65% of them through smartphones.
Total Raised Floor Space
Sq. Ft. 2.76 M
Volume, Raised Floor Space, 2024
The total raised floor area in the region is expected to increase to 5.2 million sq. ft by 2029. Due to the increased trend of online shopping, digital payments, gaming on smartphones region would witness growth in data centers.
Installed Racks
138,045
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 260,783 units by 2029. South Africa is expected to house the maximum number of racks by 2029. Africa is expected to have around 650 million internet users in 2024.
# of DC Operators & DC Facilities
27 and 45
Volume, DC Facilities, 2024
There are 45 colocation data center facilities in Africa. Increasing demand for cloud services, and rising government incentives for land are a few factors that have accelerated the growth of data center facilities in Africa.
Leading Market Player
28.9%
Market Share, Teraco Data Environments (Digital Realty), 2023
Teraco Data Environment led the market in 2023, with a share of 28.9%. The company has announced plans to launch a 30 MW hyperscale facility in Ekurhuleni, South Africa, east of Johannesburg, expected to assist in retaining market leadership.
Tier 3 data center accounted for majority share in terms of volume in 2023, and is expected to dominate through out the forecasted period
- Increasing developments in artificial intelligence, IoT, and blockchain technology across varying sectors, including telecom, cloud, and government, have contributed to the growing data consumption in Africa.
- Africa has more than 400 technology hubs across 93 cities in 42 countries. In 2022, the African start-ups raised about USD 4.8 billion through 1,000 deals, compared to about USD 4.33 billion raised across 820 rounds in 2021. These technology start-ups may require low latency and high-speed, uninterrupted internet and cloud facilities to ensure continuous customer service. The increasing demand for better infrastructure may fuel the demand for more IT load capacity and more Tier 3 and 4-certified data center facilities.
- The long-term growth vision is better suited to set up at least Tier 3-certified data centers to cover the initial high cost of establishing the facilities. However, Tier 1 & 2 facilities were losing traction, given the limited power availability. Hence, to ensure the longevity of investments and tackle the increasing demand for faster and more reliable data storage and processing facilities, companies are focusing on constructing Tier 3 and 4 facilities.
- Tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, and disaster recovery options. Thus, during the forecast period, the Tier 4 segment is expected to record a CAGR of 18.02%, compared to the Tier 3 segment at 14.40% and the Tier 1 & 2 segment at 3.26%.
South Africa dominates the Data center market in Africa in 2023, and would continue to keep its dominance in forecasted period
- South Africa is the most prominent country for data centers in Africa since the country comprises about 42 million internet users. It also has internet penetration rates closer to 70%, and its adaptation to e-commerce and other demand-generating aspects is growing. This, in turn, has led data center operators to set up their data center facilities in the region to leverage the increasing demand for the facilities.
- South Africa held a market share of around 63.1%, followed by the Rest of African countries at 24.4%, and Nigeria accounted for 12.4% in 2021. The company that has strengthened its market share in South Africa is Teraco Data Environments (acquired by Digital Realty), which currently has a market share of 36.72% and operates at an IT load capacity of 150 MW. Through its subsidiaries, Medallion Communication Ltd and Teraco Data Environments, companies such as Digital Realty have announced plans to develop mega and massive data centers with IT load capacities of 160 MW and 110 MW during the forecast period.
- Cape Town has been ranked among the top smart cities worldwide for its IoT and real-time data analysis through sensor implementation. Smart cities create huge amounts of data owing to the varying smart services imparted to the citizens.
- The country is expected to witness more such smart cities as operators plan to extend the deployment of IoT-based devices. The Rest of Africa segment also comprises smart cities like Kigali, Rwanda, which have sensors to measure air quality, monitor the power grid's safety, and detect water leakages. Due to all the above factors, the South African data center market is expected to grow and register a CAGR of 15.68% over the forecast period.
Africa Data Center Industry Segmentation
Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Nigeria, South Africa are covered as segments by Country.
- Increasing developments in artificial intelligence, IoT, and blockchain technology across varying sectors, including telecom, cloud, and government, have contributed to the growing data consumption in Africa.
- Africa has more than 400 technology hubs across 93 cities in 42 countries. In 2022, the African start-ups raised about USD 4.8 billion through 1,000 deals, compared to about USD 4.33 billion raised across 820 rounds in 2021. These technology start-ups may require low latency and high-speed, uninterrupted internet and cloud facilities to ensure continuous customer service. The increasing demand for better infrastructure may fuel the demand for more IT load capacity and more Tier 3 and 4-certified data center facilities.
- The long-term growth vision is better suited to set up at least Tier 3-certified data centers to cover the initial high cost of establishing the facilities. However, Tier 1 & 2 facilities were losing traction, given the limited power availability. Hence, to ensure the longevity of investments and tackle the increasing demand for faster and more reliable data storage and processing facilities, companies are focusing on constructing Tier 3 and 4 facilities.
- Tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, and disaster recovery options. Thus, during the forecast period, the Tier 4 segment is expected to record a CAGR of 18.02%, compared to the Tier 3 segment at 14.40% and the Tier 1 & 2 segment at 3.26%.
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
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| Country | |
| Nigeria | |
| South Africa | |
| Rest of Africa |
Africa Data Center Market Size Summary
The Africa Data Center Market is experiencing significant growth, driven by the increasing demand for advanced digital infrastructure to support burgeoning technologies such as artificial intelligence, IoT, and blockchain. This demand is particularly pronounced in sectors like telecom, cloud, and government, which are witnessing a surge in data consumption. The continent boasts over 400 technology hubs across numerous cities, with a notable rise in startup activity, further fueling the need for robust data center facilities. As companies seek to enhance their IT load capacity, there is a marked shift towards the construction of Tier 3 and Tier 4 certified data centers, which offer superior bandwidth, low latency, and improved connectivity. South Africa stands out as a key player in this market, with a substantial portion of the continent's data center operations concentrated there, driven by high internet penetration and a growing e-commerce landscape.
The market landscape is characterized by a fragmented structure, with major players like Business Connexion, Digital Realty Trust, Equinix, and Teraco Data Environments leading the charge. These companies are actively expanding their footprints across the continent, with significant investments in new facilities to meet the rising demand for data storage and processing capabilities. The proliferation of smartphones and digital services, coupled with the gradual rollout of 5G technology, is expected to further boost data consumption and, consequently, the data center market. As telecom companies phase out older technologies and enhance their 4G services, the need for increased IT load capacity and colocation space is anticipated to grow, supporting the market's upward trajectory over the forecast period.
Africa Data Center Market Size - Table of Contents
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1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)
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1.1 Data Center Size
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1.1.1 Large
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1.1.2 Massive
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1.1.3 Medium
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1.1.4 Mega
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1.1.5 Small
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1.2 Tier Type
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1.2.1 Tier 1 and 2
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1.2.2 Tier 3
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1.2.3 Tier 4
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1.3 Absorption
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1.3.1 Non-Utilized
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1.3.2 Utilized
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1.3.2.1 By Colocation Type
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1.3.2.1.1 Hyperscale
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1.3.2.1.2 Retail
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1.3.2.1.3 Wholesale
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1.3.2.2 By End User
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1.3.2.2.1 BFSI
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1.3.2.2.2 Cloud
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1.3.2.2.3 E-Commerce
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1.3.2.2.4 Government
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1.3.2.2.5 Manufacturing
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1.3.2.2.6 Media & Entertainment
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1.3.2.2.7 Telecom
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1.3.2.2.8 Other End User
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1.4 Country
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1.4.1 Nigeria
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1.4.2 South Africa
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1.4.3 Rest of Africa
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Africa Data Center Market Size FAQs
What is the current Africa Data Center Market size?
The Africa Data Center Market is projected to register a CAGR of 12.34% during the forecast period (2024-2029).
Who are the key players in Africa Data Center Market?
Business Connexion (Pty) Ltd, Digital Realty Trust Inc., Equinix Inc., Teraco Data Environments (Digital Realty) and Vantage Data Centers LLC are the major companies operating in the Africa Data Center Market.
