South Africa Data Center Power Market Size (2024 - 2029)

South Africa Data Center Power Market Analysis

The South Africa Data Center Power Market size is estimated at USD 181.40 million in 2024, and is expected to reach USD 333.5 million by 2029, growing at a CAGR of 13.60% during the forecast period (2024-2029).

African data centers use a considerable amount of power, and commercial DC power usage has been growing by an average of 40% annually over the past five years as adoption has accelerated. It was expected to pass the 4,000 GWh mark in 2022. South Africa's power grid has experienced challenges with reliability and stability, leading to potential disruptions in data center operations. Data centers require a reliable and stable power supply to ensure uninterrupted operations, and grid instability can impact their sustainability efforts. Such factor leads to major market demand.

Usage levels are expected to double over the next five years, and projections of DC power consumption will grow by 20% to 25% annually, expecting to reach nearly 8,000 GWh by 2026.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center power market is expected to reach 828.92 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 220,201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Africa, and many are under construction. One such submarine cable that was estimated to start service in 2023 was 2Africa, which stretched over 45,000 km with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South Africa Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance. 

The South African data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.