Africa Data Center Colocation Market - Industry Outlook & Forecast 2023-2028

Description

The Africa data center colocation market is expected to grow at a CAGR of 10.64% from 2022-2028.

KEY HIGHLIGHTS

South Africa plays an important role in the Africa data center colocation market, standing out as the primary driver of capacity in the region. With more than 60% of the IT power capacity, South Africa stands out, making it an attractive destination for substantial investments in data center facilities. Nigeria, Kenya, and other African countries follow this. Smart city initiatives, a rise in 5G network connectivity, and fiber connectivity are other factors driving continuous regional data center investments.
The growing adoption of Artificial Intelligence (AI) is fueling regional data center investments. An example is the strategic partnership between Huawei and ITDIA in Egypt, where they established the "Spark" initiative to promote AI-based investments and initiatives in the country.
The Africa data center colocation market grows continuously in terms of connectivity by deploying new submarine cables such as Africa-1, 2Africa, India Europe Xpress (IEX), Equiano, and Medusa Submarine Cable System, and SeaMeWe - 6, which are expected to be ready for services during the forecast period.

MARKET TRENDS & DRIVERS

Deployment of 5G Network Services

The introduction of 5G in Africa will likely generate substantial data, further increasing investment in data centers. High internet connectivity, bandwidth, and less processing time is the feature of 5G technology. South Africa, Nigeria, Kenya, Egypt, and Ethiopia have witnessed the commercial launch of 5G in the region, while countries like Ghana, Algeria, Tanzania, and Congo were in the initial stages of their development.
Vodacom, MTN, Ericsson, Orange, Ethio Telecom, and Rain are the main telecom operators in Africa involved in the commercial deployment of 5G services that partially or entirely cover 5G services in the country. Several pilot 5G projects are underway and expected to be deployed in the forecasted period.

Procurement of Renewable Energy Sources

Due to the unavailability of proper power infrastructure in the African region, data centers were forced to develop their renewable energy infrastructure for power generation.

I. MTN, a South Africa-based telecom company, operates four facilities in Kenya and other African countries, uses renewable energy to power its data center, and aims to be carbon-neutral by 2040. It has introduced the "Project Zero" program.

II. In June 2022, Vantage Data Centers signed a 20-year Power Purchase Agreement (PPA) with SolarAfrica, in which the company will procure 87 MWp of solar energy that will be used to power its new facility.

SEGMENTATION INSIGHTS

Data centers invest in power infrastructure with a minimum N+1 redundancy. In 2022, UPS systems accounted for a market share of more than 30% of the total electrical infrastructure in data centers.
Data centers are investing in cooling infrastructure due to the high-temperature climate in some African countries. In 2022, cooling systems accounted for a market share of more than 65% of the total mechanical infrastructure in data centers. Air-based cooling contributed to more than 70% of the cooling technique in the African region.
There has been significant growth in establishing data centers in the region, specifically in the Tier III and Tier IV certification categories. Many private and public entities, including those in the BFSI, education, and government sectors, have obtained Uptime Institute certifications during the design phase or for their completed facilities. This demonstrates a strong commitment to high reliability and operational excellence in data center infrastructure.

SEGMENTATION ANALYSIS

Segmentation by Colocation Service

Retail Colocation
Wholesale Colocation

Segmentation by Infrastructure

Electrical Infrastructure
Mechanical Infrastructure
General Construction

Segmentation by Electrical Infrastructure

UPS Systems
Generators
Transfer Switches & Switchgear
Power Distribution Units
Other Electrical Infrastructure

Segmentation by Mechanical Infrastructure

Cooling Systems
Racks
Other Mechanical Infrastructure

Segmentation by Cooling Systems

CRAC & CRAH Units
Chiller Units
Cooling Towers, Condensers & Dry Coolers
Other Cooling Units

Segmentation by Cooling Technique

Air-based Cooling Technique
Liquid-based Cooling Technique

Segmentation by General Construction

Core & Shell Development
Installation & Commissioning Services
Engineering & Building Design
Fire Detection & Suppression
Physical Security
DCIM/BMS Solutions

Segmentation by Tier Standard

Tier I & II
Tier III
Tier IV

GEOGRAPHICAL ANALYSIS

In the Africa data center colocation market, South Africa, Kenya, and Nigeria are the developed data center markets in the region.
South Africa represents more than 60% of the African region's power capacity, followed by Nigeria and Kenya.
Data center expansion in the African region is driven by the emergence of smart cities, special economic zones, and free trade zones, coupled with government incentives and exemptions. Major countries such as South Africa, Kenya, Morocco, Nigeria, Egypt, Ethiopia, and Ghana have spearheaded investments in smart city initiatives. Examples include the Lanseria and Nkuna smart city projects in South Africa and Nigeria's Eko Atlantic City, all contributing to the region's growing data center landscape.

Segmentation by Geography

Africa
South Africa
Kenya
Nigeria
Egypt
Ethiopia
Other African Countries

KEY MARKET PARTICIPANTS' INITIATIVES

The Africa data center colocation market is witnessing increased demand across industries, and acquisitions & joint ventures enable new players to enter the industry, attract customers, and capture a higher market share.

I. Equinix expanded its footprint in the region by completing the acquisition of MainOne, including MDXi, in H1 2022.

II. Digital Realty acquired a major stake of around 55% in Teraco.

Key Data Center Investors

21st Century Technologies
Africa Data Centres
Digital Realty
Digital Parks Africa
Equinix
Galaxy Backbone
IXAfrica
Medallion Communications
Paratus Namibia
NTT Global Data Centers
Rack Centre
Raxio Data Centres
Telecom Egypt
Wingu

New Entrants

Airtel Nigeria
Airtel Nigeria
Cloudoon
Gulf Data Hub
Kasi Cloud
Khazna Data Centers
Open Access Data Centres
Vantage Data Centers

KEY QUESTIONS ANSWERED:

1. How big is the Africa data center colocation market?

2. What is the growth rate of the Africa data center colocation market?

3. What is the estimated market size in terms of area in the Africa data center colocation market by 2028?

4. What are the key trends in the African data center colocation market?

5. How many MW of power capacity is expected to reach the Africa data center colocation market by 2028?

Product Code: ARZ230716

1. REPORT COVERAGE

1.1. WHAT'S INCLUDED
1.2. SEGMENTAL COVERAGE
- 1.2.1. Market Segmentation by Colocation Service Type
- 1.2.2. Market Segmentation by Infrastructure
- 1.2.3. Market Segmentation by Electrical Infrastructure
- 1.2.4. Market Segmentation by Mechanical Infrastructure
- 1.2.5. Market Segmentation by Cooling System

2. MARKET AT A GLANCE

3. SEGMENTAL & GEOGRAPHICAL SNAPSHOT

4. INFRASTRUCTURE SEGMENTATION

5. PREMIUM INSIGHTS

5.1. KEY HIGHLIGHTS
5.2. SEGMENTAL ANALYSIS
5.3. MARKET TRENDS
5.4. GEOGRAPHICAL ANALYSIS
5.5. KEY MARKET PARTICIPANTS' INITIATIVES

6. INTRODUCTION

6.1. SITE SELECTION CRITERIA

7. MARKET OPPORTUNITIES & TRENDS

7.1. INCREASE IN SMART CITY INITIATIVES
7.2. GOVERNMENT SUPPORT FOR DATA CENTER DEVELOPMENT
7.3. GROWING ADOPTION OF ARTIFICIAL INTELLIGENCE
7.4. MIGRATION FROM ON-PREMISES TO COLOCATION & MANAGED SERVICES
7.5. RISE IN 5G NETWORK CONNECTIVITY AND EDGE DATA CENTER DEPLOYMENTS

8. MARKET GROWTH ENABLERS

8.1. INCREASING ADOPTION OF CLOUD SERVICES
8.2. GROWTH IN PENETRATION OF BIG DATA & IOT
8.3. RISE IN RENEWABLE ENERGY ADOPTION
8.4. INCREASE IN SUBMARINE CABLE & INLAND CONNECTIVITY

9. MARKET RESTRAINTS

9.1. LOW BUDGETS & INVESTMENT CONSTRAINTS IN DATA CENTER DEVELOPMENT
9.2. LOCATION CONSTRAINTS ON DATA CENTERS
9.3. DEARTH OF SKILLED WORKFORCE
9.4. SECURITY THREATS IN DATA CENTERS

10. MARKET LANDSCAPE

10.1. MARKET SNAPSHOT & GROWTH ENGINE
10.2. MARKET OVERVIEW
10.3. INVESTMENT: MARKET SIZE & FORECAST
10.4. AREA: MARKET SIZE & FORECAST
10.5. POWER CAPACITY: MARKET SIZE & FORECAST
10.6. COLOCATION REVENUE: MARKET SIZE & FORECAST

11. COLOCATION SERVICE TYPE

11.1. MARKET OVERVIEW
11.2. RETAIL COLOCATION
- 11.2.1. Market Overview
- 11.2.2. Market Size & Forecast
11.3. WHOLESALE COLOCATION
- 11.3.1. Market Overview
- 11.3.2. Market Size & Forecast

12. INFRASTRUCTURE

12.1. MARKET SNAPSHOT & GROWTH ENGINE
12.2. ELECTRICAL INFRASTRUCTURE
- 12.2.1. Market Overview
- 12.2.2. Market Size & Forecast
12.3. MECHANICAL INFRASTRUCTURE
- 12.3.1. Market Overview
- 12.3.2. Market Size & Forecast
12.4. GENERAL CONSTRUCTION
- 12.4.1. Market Overview
- 12.4.2. Market Size & Forecast

13. ELECTRICAL INFRASTRUCTURE

13.1. MARKET SNAPSHOT & GROWTH ENGINE
13.2. MARKET OVERVIEW
13.3. UPS SYSTEMS
- 13.3.1. Market Overview
- 13.3.2. Investment: Market Size & Forecast
13.4. GENERATORS
- 13.4.1. Market Overview
- 13.4.2. Investment: Market Size & Forecast
13.5. TRANSFER SWITCHES & SWITCHGEAR
- 13.5.1. Market Overview
- 13.5.2. Investment: Market Size & Forecast
13.6. PDUS
- 13.6.1. Market Overview
- 13.6.2. Investment: Market Size & Forecast
13.7. OTHER ELECTRICAL INFRASTRUCTURE
- 13.7.1. Market Overview
- 13.7.2. Investment: Market Size & Forecast

14. MECHANICAL INFRASTRUCTURE

14.1. MARKET SNAPSHOT & GROWTH ENGINE
14.2. MARKET OVERVIEW
14.3. COOLING SYSTEMS
- 14.3.1. Market Overview
- 14.3.2. Market Size & Forecast
14.4. RACKS
- 14.4.1. Market Overview
- 14.4.2. Investment: Market Size & Forecast
14.5. OTHER MECHANICAL INFRASTRUCTURE
- 14.5.1. Market Overview
- 14.5.2. Investment: Market Size & Forecast

15. COOLING SYSTEMS

15.1. MARKET SNAPSHOT & GROWTH ENGINE
15.2. MARKET OVERVIEW
15.3. CRAC & CRAH UNITS
- 15.3.1. Market Overview
- 15.3.2. Market Size & Forecast
15.4. CHILLER UNITS
- 15.4.1. Market Overview
- 15.4.2. Investment: Market Size & Forecast
15.5. COOLING TOWERS, CONDENSERS & DRY COOLERS
- 15.5.1. Market Overview
- 15.5.2. Investment: Market Size & Forecast
15.6. OTHER COOLING UNITS
- 15.6.1. Market Overview
- 15.6.2. Investment: Market Size & Forecast

16. COOLING TECHNIQUE

16.1. MARKET SNAPSHOT & GROWTH ENGINE
16.2. MARKET OVERVIEW
16.3. AIR-BASED COOLING
- 16.3.1. Market Overview
- 16.3.2. Market Size & Forecast
16.4. LIQUID-BASED COOLING
- 16.4.1. Market Overview
- 16.4.2. Investment: Market Size & Forecast

17. GENERAL CONSTRUCTION

17.1. MARKET SNAPSHOT & GROWTH ENGINE
17.2. MARKET OVERVIEW
17.3. CORE & SHELL DEVELOPMENT
- 17.3.1. Market Overview
- 17.3.2. Market Size & Forecast
17.4. INSTALLATION & COMMISSIONING SERVICES
- 17.4.1. Market Overview
- 17.4.2. Market Size & Forecast
17.5. ENGINEERING & BUILDING DESIGN
- 17.5.1. Market Overview
- 17.5.2. Investment: Market Size & Forecast
17.6. FIRE DETECTION & SUPPRESSION
- 17.6.1. Market Overview
- 17.6.2. Investment: Market Size & Forecast
17.7. PHYSICAL SECURITY
- 17.7.1. Market Overview
- 17.7.2. Investment: Market Size & Forecast
17.8. DCIM/BMS SOLUTIONS
- 17.8.1. Market Overview
- 17.8.2. Investment: Market Size & Forecast

18. TIER STANDARDS

18.1. MARKET SNAPSHOT & GROWTH ENGINE
18.2. MARKET OVERVIEW
18.3. TIER I & II
- 18.3.1. Market Overview
- 18.3.2. Market Size & Forecast
18.4. TIER III
- 18.4.1. Market Overview
- 18.4.2. Investment: Market Size & Forecast
18.5. TIER IV
- 18.5.1. Market Overview
- 18.5.2. Market Size & Forecast

19. AFRICA

19.1. SOUTH AFRICA
- 19.1.1. Market Snapshot & Growth Engine
- 19.1.2. Market Overview
- 19.1.3. Investment: Market Size & Forecast
- 19.1.4. Area: Market Size And Forecast
- 19.1.5. Power Capacity: Market Size & Forecast
- 19.1.6. Support Infrastructure: Market Size & Forecast
- 19.1.7. Colocation Revenue: Market Size & Forecast
19.2. KENYA
- 19.2.1. Market Snapshot & Growth Engine
- 19.2.2. Market Overview
- 19.2.3. Investment: Market Size & Forecast
- 19.2.4. Area: Market Size & Forecast
- 19.2.5. Power Capacity: Market Size & Forecast
- 19.2.6. Support Infrastructure: Market Size & Forecast
- 19.2.7. Colocation Revenue: Market Size & Forecast
19.3. NIGERIA
- 19.3.1. Market Snapshot & Growth Engine
- 19.3.2. Market Overview
- 19.3.3. Investment: Market Size & Forecast
- 19.3.4. Area: Market Size & Forecast
- 19.3.5. Power Capacity: Market Size & Forecast
- 19.3.6. Support Infrastructure: Market Size & Forecast
- 19.3.7. Colocation Revenue: Market Size & Forecast
19.4. EGYPT
- 19.4.1. Market Snapshot & Growth Engine
- 19.4.2. Market Overview
- 19.4.3. Investment: Market Size & Forecast
- 19.4.4. Area: Market Size & Forecast
- 19.4.5. Power Capacity: Market Size & Forecast
- 19.4.6. Support Infrastructure: Market Size & Forecast
- 19.4.7. Colocation Revenue: Market Size & Forecast
19.5. ETHIOPIA
- 19.5.1. Market Snapshot & Growth Engine
- 19.5.2. Market Overview
- 19.5.3. Investment: Market Size & Forecast
- 19.5.4. Area: Market Size & Forecast
- 19.5.5. Power Capacity: Market Size & Forecast
- 19.5.6. Support Infrastructure: Market Size & Forecast
- 19.5.7. Colocation Revenue: Market Size & Forecast
19.6. OTHER AFRICAN COUNTRIES
- 19.6.1. Market Snapshot & Growth Engine
- 19.6.2. Market Overview
- 19.6.3. Investment: Market Size & Forecast
- 19.6.4. Area: Market Size & Forecast
- 19.6.5. Power Capacity: Market Size & Forecast
- 19.6.6. Support Infrastructure: Market Size & Forecast
- 19.6.7. Colocation Revenue: Market Size & Forecast

20. COMPETITIVE LANDSCAPE

20.1. MARKET SHARE BY COLOCATION INVESTMENT
20.2. MARKET SHARE BY COLOCATION AREA
20.3. MARKET SHARE BY COLOCATION POWER CAPACITY

21. KEY DATA CENTER INVESTORS

21.1. 21ST CENTURY TECHNOLOGY
- 21.1.1. Business Overview
- 21.1.2. Service Offerings
21.2. AFRICA DATA CENTRES
- 21.2.1. Business Overview
- 21.2.2. Service Offerings
21.3. DIGITAL REALTY
- 21.3.1. Business Overview
- 21.3.2. Service Offerings
21.4. DIGITAL PARKS AFRICA
- 21.4.1. Business Overview
- 21.4.2. Service Offerings
21.5. EQUINIX
- 21.5.1. Business Overview
- 21.5.2. Service Offerings
- 21.5.3. Key News
21.6. GALAXY BACKBONE
- 21.6.1. Business Overview
- 21.6.2. Service Offerings
- 21.6.3. Key News
21.7. IXAFRICA
- 21.7.1. Business Overview
- 21.7.2. Service Offerings
21.8. MEDALLION COMMUNICATIONS
- 21.8.1. Business Overview
- 21.8.2. Service Offerings
21.9. NTT GLOBAL DATA CENTERS
- 21.9.1. Business Overview
- 21.9.2. Service Offerings
- 21.9.3. Key News
21.10. PARATUS NAMIBIA
- 21.10.1. Business Overview
- 21.10.2. Service Offerings
21.11. RACK CENTRE
- 21.11.1. Business Overview
- 21.11.2. Service Offerings
21.12. RAXIO DATA CENTRES
- 21.12.1. Business Overview
- 21.12.2. Service Offerings
- 21.12.3. Key News
21.13. TELECOM EGYPT
- 21.13.1. Business Overview
- 21.13.2. Service Offerings
21.14. WINGU
- 21.14.1. Business Overview
- 21.14.2. Service Offerings

22. NEW ENTRANTS

22.1. AIRTEL NIGERIA
- 22.1.1. Business Overview
- 22.1.2. Service Offerings
22.2. AGILITY
- 22.2.1. Business Overview
- 22.2.2. Service Offerings
22.3. CLOUDOON
- 22.3.1. Business Overview
- 22.3.2. Service Offerings
22.4. GULF DATA HUB
- 22.4.1. Business Overview
- 22.4.2. Service Offerings
22.5. KASI CLOUD
- 22.5.1. Business Overview
- 22.5.2. Service Offerings
22.6. KHAZNA DATA CENTERS
- 22.6.1. Business Overview
- 22.6.2. Service Offerings
- 22.6.3. Key News
22.7. OPEN ACCESS DATA CENTRES
- 22.7.1. Business Overview
- 22.7.2. Service Offerings
22.8. VANTAGE DATA CENTERS
- 22.8.1. Business Overview
- 22.8.2. Service Offerings

23. REPORT SUMMARY

23.1. KEY TAKEAWAYS

24. QUANTITATIVE SUMMARY

24.1. AFRICA DATA CENTER COLOCATION MARKET
- 24.1.1. Market Size & Forecast
- 24.1.2. Market by Colocation Service: Market Size & Forecast
- 24.1.3. Infrastructure: Market Size & Forecast
24.2. MARKET SEGMENTATION
- 24.2.1. Electrical Infrastructure: Market Size & Forecast
- 24.2.2. Mechanical Infrastructure: Market Size & Forecast
- 24.2.3. Cooling Systems: Market Size & Forecast
- 24.2.4. Cooling Techniques: Market Size & Forecast
- 24.2.5. General Construction: Market Size & Forecast
- 24.2.6. Tier Standards: Market Size & Forecast

25. MARKET BY GEOGRAPHY

25.1. AFRICA
- 25.1.1. Investment: Market Size & Forecast
- 25.1.2. Area: Market Size & Forecast
- 25.1.3. Power Capacity: Market Size & Forecast
- 25.1.4. Colocation Revenue: Market Size & Forecast
25.2. SOUTH AFRICA
- 25.2.1. Overview: Market Size & Forecast
- 25.2.2. Support Infrastructure: Market Size & Forecast
- 25.2.3. Market by Colocation Service: Market Size & Forecast
25.3. KENYA
- 25.3.1. Overview: Market Size & Forecast
- 25.3.2. Support Infrastructure: Market Size & Forecast
25.4. NIGERIA
- 25.4.1. Overview: Market Size & Forecast
- 25.4.2. Support Infrastructure: Market Size & Forecast
25.5. EGYPT
- 25.5.1. Overview: Market Size & Forecast
- 25.5.2. Support Infrastructure: Market Size & Forecast
25.6. ETHIOPIA
- 25.6.1. Overview: Market Size & Forecast
- 25.6.2. Support Infrastructure: Market Size & Forecast
25.7. OTHER AFRICAN COUNTRIES
- 25.7.1. Overview: Market Size & Forecast
- 25.7.2. Support Infrastructure: Market Size & Forecast

26. APPENDIX

26.1. LIST OF ABBREVIATIONS
26.2. MARKET SEGMENTATION & DEFINITION
- 26.2.1. Market Segmentation by Cooling Techniques
- 26.2.2. Market Segmentation by General Construction
- 26.2.3. Market Segmentation by Tier Standards
26.3. CURRENCY CONVERSION