Africa Data Center Market Landscape 2026-2031

The Africa data center market size by investment is expected to grow at a CAGR of 15.76% from 2025 to 2031.

AFRICA DATA CENTER MARKET SEGMENTATION INSIGHTS

• AI data centers are now built around clusters of GPUs rather than traditional CPU-based setups. In Africa, strategic partnerships and GPU-focused infrastructure drive rapid growth in the AI sector, positioning the country as a central hub for cloud and AI technologies in the region. For instance, NVIDIA is planning to build an AI factory in Kenya in the next three to four years; furthermore, the company is slated to further deploy 12,000 GPUs in new facilities. In November 2025, Atlancis Technologies, through its Servernah Cloud platform, rolled out the first GPU-powered AI hub in East and Central Africa. The facility is hosted at iXAfrica Data Centers.
• In Africa, most of the data centers currently use traditional air-based cooling systems. However, in the coming years, the demand for AI-focused data centers is expected to increase across the region, leading to higher rack power densities. It is expected that data center operators are slated to shift toward liquid cooling techniques and immersion cooling solutions to efficiently manage heat and support high-performance workloads. For instance, the Masinga Cloud data center by Cloudoon is estimated to be using water cooling techniques, which is part of its green and efficient design. This technology is slated to be powered by a combination of hydroelectricity and an on-site solar plant. The facility is designed to minimize environmental impact and reduce operational costs through its innovative cooling system.

IMPACT OF THE MIDDLE EAST WAR

• Ongoing conflict in the Middle East is transmitting rapid and multi-dimensional shocks to African economies, with effects occurring faster and through more concentrated channels than previous global crises. A sharp surge in global oil prices, rising by over 50% as of March 2026, has significantly increased energy import bills across the continent, particularly for net oil-importing countries. This has contributed to widespread macroeconomic pressures, including the depreciation of 29 African currencies, which in turn has raised the cost of servicing external debt as well as importing essential commodities such as food, fuel, and fertilizers. Inflationary pressures are intensifying, with estimates suggesting that a 10% increase in energy prices could raise inflation in Africa by up to 1.7 percentage points, while also weakening growth prospects. Although Africa's growth was projected at around 4.5% in 2026, prolonged conflict could reduce GDP growth by approximately 0.2 percentage points or more.
• At the same time, disruptions to global trade and logistics are compounding economic challenges. Instability around critical maritime chokepoints, such as the Strait of Hormuz and the Red Sea, has disrupted global shipping routes, forcing vessels to reroute via the Cape of Good Hope. This diversion has increased transit times between Asia and Africa by 10-15 days and raised freight costs by 20%-40%, along with augmenting higher insurance premiums. Given that approximately 13% of Africa's imports transit through the Strait of Hormuz, these disruptions are leading to structurally higher import costs, which are feeding into inflation and reducing firm-level profitability.
• Submarine cables in the Middle East region face heightened risk during conflict due to physical damage from military activity, anchoring, or sabotage in strategic maritime routes such as the Red Sea and the Persian Gulf. Disruptions to these cables can significantly impact global internet traffic as a large share of data between Europe, Asia, and Africa passes through this corridor. Even minor damage can lead to bandwidth congestion, slower connectivity, and the rerouting of data.
• The conflict has important security and geopolitical implications. Increasing instability in the Red Sea and the Horn of Africa is raising concerns over maritime security and the potential spillover of conflict into strategically important regions. Additionally, the crisis risks diverting global diplomatic attention away from ongoing conflicts within Africa, while intensifying geopolitical competition in fragile states such as Sudan and Somalia.
• For the Africa data center sector, these development initiatives translate into higher construction and operational costs driven by rising energy prices, increased logistics expenses, and currency volatility. Supply chain disruptions may delay equipment delivery, while elevated power costs can impact long-term operational feasibility. However, the crisis underscores the strategic importance of strengthening local digital infrastructure, improving energy security through renewables, and enhancing regional self-reliance to build resilience against future external shocks.

AFRICA DATA CENTER MARKET KEY TRENDS

Sustainability Initiatives and Renewable Energy

• Data centers in Africa are energy-intensive facilities, and sustainability has become an important focus as the region expands its digital infrastructure. Operators are increasingly exploring renewable energy sources, such as solar, wind, and hydro power, to reduce emissions and operational costs. Several African countries have strong renewable potential, which creates opportunities for building greener and more energy-efficient data centers across the continent.
• In Africa, we observe that the data center operators are adopting renewable energy for data centers. For instance, in February 2025, Teraco, a Digital Realty company, announced the signing of a Power Purchase Agreement (PPA) with NOA, an integrated energy aggregator based in South Africa, to acquire renewable energy (wind energy) for use in its data center.
• Governments and private operators are gradually promoting environmentally responsible infrastructure by investing in renewable energy projects and energy-efficient cooling technologies.
• In April 2025, the government of Egypt secured financing of approximately $3.5 billion to develop multiple wind and solar projects across the country to generate approximately 6.4 GW and around 5.6 GW of wind energy and solar energy, respectively, by 2026 to increase the share of renewable sources in the nation's electricity mix.

Increased Adoption of AI, Automation, and Digitalization

• Africa is accelerating its shift toward AI, automation, and digitization, supported by advances in cloud computing, data centers, and supercomputing capabilities for climate research. The region is leveraging AI to enhance productivity across sectors, while prioritizing renewable energy and sustainable digital solutions.
• The governments of African countries are investing in AI infrastructure. For instance, in July 2025, South Africa's Minister of Science, Technology, and Innovation announced the country's investment of approximately $28.4 million in AI, blockchain, and other emerging technologies to strengthen foundational digital capabilities in the public sector. Additionally, the fund supports the Foundational Digital Capabilities Research (FDCR) platform and the Centre for Artificial Intelligence Research (CAIR) across nine universities located in Cape Town, Pretoria, Stellenbosch, and Sol Plaatje University.
• In August 2025, the Egyptian Ministry of Planning, Economic Development, and International Cooperation announced plans to invest approximately $255.6 million in the country's ICT sector by the end of FY 2026 to accelerate digital transformation across Egypt, while positioning the country as one of the leading regional tech hubs in Africa.
• Nigeria is accelerating its shift toward AI and digitization, supported by advancements in cloud computing, data centers, and supercomputing capabilities for climate research. The country is leveraging AI to enhance productivity across sectors, while prioritizing renewable energy and sustainable digital solutions.
• Africa is a developing region; over the last two to three years, the demand for emerging technologies such as Artificial Intelligence (AI), Machine Learning (ML), big data, and the Internet of Things (IoT) across various industries has been growing rapidly. We believe that this will help increase the demand for AI-ready data centers in African countries, and global investors are showing strong interest in investing in Africa.

GEOGRAPHICAL ANALYSIS

• South Africa is one of the major data center markets in Africa, offering plenty of space for data center growth. The South African government is taking initiatives to attract foreign investment, such as establishing SEZs and general investment incentives. In terms of data center development, Johannesburg and Cape Town are the major locations that witnessed the addition of data center space from operators such as Vantage Data Centers, Teraco (Digital Realty), and Cassava Technologies
• Nairobi is the preferred location in Kenya, with major investments from colocation service providers such as Africa Data Centres, Telkom Kenya, Safaricom, and iXAfrica Data Centres.
• As of 2025, Lagos remains the primary hub for data center expansion in Nigeria, witnessing significant capacity additions from major operators including Rack Centre, Digital Realty, Equinix, MTN, and Open Access Data Centres. The surge in cloud adoption, colocation demand, and digital services has driven large-scale development in this city.
• In Egypt, Cairo serves as the country's capital and the largest economic hub owing to the city's strategic location, along with the presence of various financial, technology, and business institutions; the city is a major destination for data center development in Egypt. In recent years, the Egyptian cities, including 6th of October, Mansura, 10th of Ramadan City, Alexandria, and Ain Sukhna, are gaining momentum for the development of data centers in the country.
• Countries such as Morocco and Tunisia benefit from their geographic proximity to Europe and strong submarine cable connectivity across the Mediterranean Sea. This locational advantage makes them emerging gateways for intercontinental data traffic between Europe and Africa.
• Morocco offers a stable regulatory environment as well as a strategic geographic location connecting Europe and Africa, supporting data center investments. Major telecom operators, such as Maroc Telecom and Orange Morocco, are key participants in the country's data center ecosystem.

VENDOR LANDSCAPE

• In 2025, the Africa data center market is witnessing strong investment activity from hyperscale operators such as Microsoft, Amazon Web Services (AWS), and Google, which have established or announced cloud regions in key markets such as Johannesburg and Cape Town. These investments are aimed at improving latency, supporting local enterprises, and accelerating cloud adoption across the continent. For instance, in March 2025, Google announced the official launch of its cloud region in Johannesburg. The company invested about $148 million in the project.
• Africa data center market has the presence of IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco, Dell Technologies, Lenovo, NVIDIA, and others.
• In March 2025, Cassava Technologies announced plans to deploy an Nvidia-powered AI supercomputer in South Africa as part of Africa's first AI factory. The initiative aims to accelerate AI innovation and expand advanced digital infrastructure across the continent.
• Africa data center market has the presence of support infrastructure providers such as ABB, Alfa Laval, Caterpillar, Cummins, Eaton, Johnson Controls, Legrand, Rehlko Vertiv, among others. These companies lead the market, driving advancements in power systems and cooling systems to ensure efficiency and reliability.
• Africa data center market has a presence of global and local contractors and subcontractors such as AECOM, Arup, B2 Architects, Edarat Group, H&MV Engineering, ISG, Kinetic Controls, MWK Engineering, Turner & Townsend, X2X Group, among others. which provides construction, installation, engineering, and commissioning services for the construction of data center facilities across the region.
• The Africa data center market has a presence of global as well as local data center operators, investor which include 21st Century Technologies, Africa Data Centres, ECC Solutions, Microsoft, NTT DATA, Raxio Data Centres, N+ONE, Raya Data Center, among others.
• The market will witness new data center investor to investment in Africa region, such as Cloudoon, Cybastion, Gulf Data Hub, Internet Initiative Japan, Iozera.ai, Kasi Cloud, Khazna Data Centers, NAVER Cloud, NEOIX, Nxtra by Airtel, and Otech.

This report also profiles and examines leading companies and other prominent ones operating in the market.

Segmentation by Facility Type

• Hyperscale Data Centers
• Colocation Data Centers
• Enterprise Data Centers

Segmentation by Infrastructure

• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction

Segmentation by IT Infrastructure

• Server Infrastructure
• Storage Infrastructure
• Network Infrastructure

Segmentation by Electrical Infrastructure

• UPS Systems
• Generators
• Transfer Switches & Switchgear
• PDUs
• 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, and Dry Coolers
• Other Cooling Units

Segmentation by Cooling Techniques

• Air-based
• Liquid-based

Segmentation by General Construction

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

Segmentation by Tier Standard

• Tier I & II
• Tier III
• Tier IV

Segmentation by Geography

• Africa
  • South Africa
  • Kenya
  • Nigeria
  • Egypt
  • Other African Countries

IT Infrastructure Providers

• Arista Networks
• Atos
• Broadcom
• Cisco
• Dell Technologies
• Fujitsu
• Hewlett Packard Enterprise (HPE)
• Hitachi Vantara
• Huawei Technologies
• IBM
• Inspur Group
• Lenovo
• NetApp
• NVIDIA
• Oracle

Data Center Support Infrastructure Providers

• ABB
• Alfa Laval
• Baudouin
• Carrier
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• Envicool
• EVAPCO
• Honeywell
• Johnson Controls
• KSTAR
• Legrand
• nVent
• Piller Power Systems
• Rehlko
• Rittal
• Rolls-Royce
• Schneider Electric
• Siemens
• STULZ
• Trane
• Vertiv

Data Center Construction Contractors and Sub Contractors

• AECOM
• Arup
• B2 Architects
• BlueSun DC
• Copy Cat Group
• Crovik Technologies
• Eastra Solutions
• Edarat Group
• EDS Engineering
• Egypro
• Future-tech
• GREA
• Gruppo ICM
• H&MV Engineering
• HubTech
• Ingenium
• Interkel Group
• ISF Group
• ISG
• Kent
• Kinetic Controls
• LYT Architecture
• Master Power Technologies
• MWK Engineering
• Norkun Intakes
• Orascom Construction PLC
• Raya Network Services
• REDCON Construction Co. S.A.E
• Remax Consult
• Reno Design and Finish
• Rider Levett Bucknall (RLB)
• Royal HaskoningDHV
• Shaker Consultancy Group
• Sterling and Wilson
• Summit Technology Solutions
• Tetra Tech
• Tri-Star Construction
• Turner & Townsend
• United For Technology Solutions
• WBHO Construction
• Westwood Management
• X2X Group

Data Center Investors

• 21st Century Technologies
• Africa Data Centres
• Digital Parks Africa
• Digital Realty
• ECC Solutions
• Equinix
• GPX Global Systems
• iXAfrica Data Centres
• Microsoft
• MTN
• N+ONE
• NTT DATA
• Open Access Data Centres (OADC)
• PAIX data center
• Paratus Namibia
• Rack Centre
• Raxio Data Centres
• Raya Data Center
• Safaricom
• Telecom Egypt
• Telkom Kenya
• Vantage Data Centers

New Entrants

• Cloudoon
• Cybastion
• Gulf Data Hub
• Internet Initiative Japan
• Iozera.ai
• Kasi Cloud
• Khazna Data Centers
• NAVER Cloud
• NEOIX
• Nxtra by Airtel
• Otech

KEY QUESTIONS ANSWERED:

1. How big is the Africa data center market?

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

3. How much MW of power capacity is expected to reach the Africa data center market by 2031?

4. What is the estimated market size in terms of area in the Africa data center market by 2030?

5. What are the key trends in the Africa data center market?