Market Size of south africa data center Industry
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Study Period | 2017 - 2029 |
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Market Volume (2024) | 434.9 MW |
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Market Volume (2029) | 828.9 MW |
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Largest Share by Tier Type | Tier 3 |
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CAGR (2024 - 2029) | 13.77 % |
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Fastest Growing by Tier Type | Tier 4 |
Major Players |
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*Disclaimer: Major Players sorted in no particular order |
South Africa Data Center Market Analysis
The South Africa Data Center Market size is estimated at 434.9 MW in 2024, and is expected to reach 828.9 MW by 2029, growing at a CAGR of 13.77%. Further, the market is expected to generate colocation revenue of USD 471 Million in 2024 and is projected to reach USD 1,103.3 Million by 2029, growing at a CAGR of 18.56% during the forecast period (2024-2029).
USD 471.01 Million
Market Size in 2024
USD 1,103.34 Million
Market Size in 2029
37.2%
CAGR (2017-2023)
18.6%
CAGR (2024-2029)
IT Load Capacity
434.86 MW
Value, IT Load Capacity, 2024
The IT load capacity of the data center market will have steady growth and is expected to achieve 828.9 MW by 2029. Teraco (Digital Realty), NTT Ltd, Vantage Data Centers, and Equinix are constructing DC facilities in the region.
Total Raised Floor Space
Sq. Ft. 2.26 M
Volume, Raised Floor Space, 2024
The total raised floor area of the country is expected to increase to 4.4 million sq. ft by 2029. 56% of consumer internet traffic was generated from mobile by 2022, and the trend has increased in 2023 creating demand for DC facilities.
Installed Racks
113,177
Volume, Installed Racks, 2024
The number of installed racks is expected to reach 220,200 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029. The growing establishment of homegrown startups would increase the demand.
# of DC Operators & DC Facilities
12 and 31
Volume, DC Facilities, 2024
There are 31 colocation data center facilities in South Africa. Some factors contributing to the growth of the data center market in the country are the adoption of 5G, smartphone penetration, and rising digitization.
Leading Market Player
37.9%
Market Share, Teraco Data Environments (Digital Realty), 2023
Teraco Data Environments (Digital Realty) was the leading player in the South African market in the historical period and is expected to roll out a 7-data center facility with a total capacity of 150 MW during the forecast period.
Tier 3 data center accounted for majority share in terms of volume in 2023, it will continue its dominance during forecast period
- Tier 1 & 2 facilities are losing their demand as they cannot fulfill the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24/7, which has gradually shifted the preference toward tier 3 and tier 4 data centers.
- Tier 4 data centers are expected to witness the highest growth of 20.41%, followed by Tier 3 data centers with 12.87% growth till 2029. Implementing such standards in the facilities ensures minimal downtown while increasing the efficiency of the facilities.
- Among the major industries, BFSI and media & entertainment are expected to majorly adopt tier 3 facilities owing to the growing acceptance of solutions like bitcoin, digital cards, biometric payments, buy now pay later (BNPL), and open banking for various financial transactions in their daily lives, in addition to being aware of these technologies.
- According to Mastercard's New Payments Index 2022, 95% of South Africans used one or more developing digital payment methods in 2021. In Q2 and Q3, 67% of consumers made an online purchase, 66% bought something through a mobile app, and 49% purchased a service through an online subscription.
- In media & entertainment, the average time spent on social media in South Africa has been rising yearly since 2017, peaking at 2 hours and 47 minutes in that year and reaching 3 hours and 37 minutes by Q3 2021.
South Africa Data Center Industry Segmentation
Johannesburg are covered as segments by Hotspot. 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.
- Tier 1 & 2 facilities are losing their demand as they cannot fulfill the growing uninterrupted services of businesses. The growing number of global conglomerates has given rise to business continuity services 24/7, which has gradually shifted the preference toward tier 3 and tier 4 data centers.
- Tier 4 data centers are expected to witness the highest growth of 20.41%, followed by Tier 3 data centers with 12.87% growth till 2029. Implementing such standards in the facilities ensures minimal downtown while increasing the efficiency of the facilities.
- Among the major industries, BFSI and media & entertainment are expected to majorly adopt tier 3 facilities owing to the growing acceptance of solutions like bitcoin, digital cards, biometric payments, buy now pay later (BNPL), and open banking for various financial transactions in their daily lives, in addition to being aware of these technologies.
- According to Mastercard's New Payments Index 2022, 95% of South Africans used one or more developing digital payment methods in 2021. In Q2 and Q3, 67% of consumers made an online purchase, 66% bought something through a mobile app, and 49% purchased a service through an online subscription.
- In media & entertainment, the average time spent on social media in South Africa has been rising yearly since 2017, peaking at 2 hours and 47 minutes in that year and reaching 3 hours and 37 minutes by Q3 2021.
| Hotspot | |
| Johannesburg | |
| Rest of South Africa |
| Data Center Size | |
| Large | |
| Massive | |
| Medium | |
| Mega | |
| Small |
| Tier Type | |
| Tier 1 and 2 | |
| Tier 3 | |
| Tier 4 |
| Absorption | |||||||||||||||||
| Non-Utilized | |||||||||||||||||
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South Africa Data Center Market Size Summary
The South Africa data center market is experiencing significant growth, driven by the increasing demand for advanced data storage and processing capabilities. As businesses evolve and require more robust infrastructure to support uninterrupted services, there is a noticeable shift from Tier 1 and Tier 2 facilities to Tier 3 and Tier 4 data centers. This transition is largely due to the rising need for business continuity and the adoption of technologies such as digital payments and open banking, particularly in the BFSI and media & entertainment sectors. The market is also witnessing a surge in mobile data consumption, with a growing number of smartphone users contributing to the demand for enhanced data center capabilities. This trend is further fueled by the increasing volume of video content and online retail activities, which necessitate more servers and storage solutions to accommodate the expanding data landscape.
The market is moderately consolidated, with key players like Business Connexion, Equinix, NTT Ltd, Teraco Data Environments, and Vantage Data Centers leading the charge. These companies are actively investing in expanding their data center footprints to meet the burgeoning demand. For instance, Equinix is set to open a new data center in Johannesburg, while Teraco is constructing a hyperscale facility in Ekurhuleni. These developments are part of a broader trend towards building more sophisticated and environmentally friendly data centers, equipped with the latest cooling and water management technologies. As the market continues to grow, it is expected to play a crucial role in supporting South Africa's digital transformation and economic development.
South 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 Hotspot
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1.1.1 Johannesburg
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1.1.2 Rest of South Africa
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1.2 Data Center Size
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1.2.1 Large
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1.2.2 Massive
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1.2.3 Medium
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1.2.4 Mega
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1.2.5 Small
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1.3 Tier Type
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1.3.1 Tier 1 and 2
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1.3.2 Tier 3
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1.3.3 Tier 4
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1.4 Absorption
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1.4.1 Non-Utilized
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1.4.2 Utilized
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1.4.2.1 By Colocation Type
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1.4.2.1.1 Hyperscale
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1.4.2.1.2 Retail
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1.4.2.1.3 Wholesale
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1.4.2.2 By End User
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1.4.2.2.1 BFSI
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1.4.2.2.2 Cloud
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1.4.2.2.3 E-Commerce
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1.4.2.2.4 Government
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1.4.2.2.5 Manufacturing
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1.4.2.2.6 Media & Entertainment
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1.4.2.2.7 Telecom
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1.4.2.2.8 Other End User
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South Africa Data Center Market Size FAQs
What is the current South Africa Data Center Market size?
The South Africa Data Center Market is projected to register a CAGR of 13.77% during the forecast period (2024-2029).
Who are the key players in South Africa Data Center Market?
Business Connexion (Pty) Ltd, Equinix Inc., NTT Ltd, Teraco Data Environments (Digital Realty) and Vantage Data Centers LLC are the major companies operating in the South Africa Data Center Market.
