Africa Data Center Rack Market Size (2024 - 2029)

The Africa Data Center Rack Market is anticipated to experience significant growth, with its market size expanding rapidly over the forecast period. This growth is driven by the increasing IT load capacity and the expansion of raised floor space across the region. The market's expansion is further supported by the planned installation of a substantial number of racks, particularly concentrated in South Africa. Additionally, the development of submarine cable systems, including major projects like 2Africa, is expected to enhance connectivity and support the market's growth trajectory.

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Market Size of Africa Data Center Rack Industry

Africa Data Center Rack Market Summary
Study Period 2024 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period
CAGR (2024 - 2030) 15.40 %
Market Concentration High

Major Players

Africa Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Rack Market Analysis

The Africa Data Center Rack Market is expected to register a CAGR of 15.40% during the forecast period.

The African Data Center Rack Market value was USD 1.1 million in the previous year, and it is further projected to grow and register a CAGR of 15.41%.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Africa data center market is expected to reach over 1,200 MW by 2029.

Under Construction Raised Floor Space: The region's construction of raised floor area is expected to increase by 5.2 million sq. ft by 2029.

Planned Racks: The region's total number of racks to be installed is expected to touch over 250,000 units by 2029. South Africa is expected to house the maximum number of racks by 2029.

Planned Submarine Cables: There are close to 60 submarine cable systems connecting Africa, and many are under construction. One such submarine cable, estimated to be built by the end of 2023, is 2Africa, which stretches over 45000 Kilometers with landing points in Lagos, Nigeria.

Africa Data Center Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The African data center rack market is segmented by rack size (quarter rack, half rack, and full rack), end-user industry (BFSI, IT and telecom, government, media and entertainment), and country (Nigeria, South Africa, and rest of South Africa). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

By Rack Size
Quarter Rack
Half Rack
Full Rack
By End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
By Country
Nigeria
South Africa
Rest of South Africa
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Africa Data Center Rack Market Size Summary

The African Data Center Rack Market is experiencing significant growth, driven by the increasing demand for data localization and the expansion of cloud services across the continent. The market is characterized by a robust expansion in IT load capacity, raised floor space, and the number of racks, with South Africa leading the charge due to its high internet penetration and growing e-commerce sector. The region's strategic initiatives, such as the Africa Continental Free Trade Area, have facilitated easier business operations, further boosting the demand for data centers. The proliferation of submarine cable systems, like the 2Africa project, is enhancing connectivity, which is crucial for supporting the burgeoning data traffic driven by advancements in mobile technology and smart city developments.

South Africa stands out as a key player in the African data center landscape, with major operators like Teraco Data Environments and Digital Realty expanding their presence to meet the rising demand. The country's focus on smart city initiatives and IoT deployment is generating substantial data, necessitating the establishment of more data centers. The market is fairly consolidated, with prominent companies such as Rittal GMBH & Co.KG, Schneider Electric SE, and Hewlett Packard Enterprise playing significant roles. Recent investments, like Equinix's new data center in Johannesburg, underscore the region's potential for further growth, as these facilities are strategically located near key infrastructure to support the increasing need for colocation services.

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Africa Data Center Rack Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increasing Deployment of Data Center Facilities

      2. 1.2.2 Growing Cloud Computing Adoption Leading to Investment in Hyperscale Data Centers

      3. 1.2.3 BFSI Sector Expected to Hold a Significant Share

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Utilization of Blade Servers

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 By End User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End Users

    3. 2.3 By Country

      1. 2.3.1 Nigeria

      2. 2.3.2 South Africa

      3. 2.3.3 Rest of South Africa

Africa Data Center Rack Market Size FAQs

The Africa Data Center Rack Market is projected to register a CAGR of 15.40% during the forecast period (2024-2030)

Rittal GMBH & Co.KG, Schneider Electric SE, Legrand SA, Dell Inc. and Hewlett Packard Enterprise are the major companies operating in the Africa Data Center Rack Market.

Africa Data Center Rack Market Report Snapshots

Africa Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)