The African data centre market is poised for significant growth. It is projected to reach approximately $6.81 billion by 2030, up from $3.49 billion in 2024, reflecting a remarkable compound annual growth rate (CAGR) of 11.79%. This surge is driven by government backing for digital infrastructure, increased connectivity, and the rise of smart city projects. Moreover, cutting-edge technologies like AI, 5G, and IoT are driving demand, with Morocco, Kenya, and Nigeria leading the way in development.
In South Africa, Johannesburg and Cape Town are key hubs for data centre expansion, while regions like Centurion and Durban are also witnessing growth. Kenya’s government promotes investment in data centres through tax incentives in special economic zones, offering a corporate tax exemption of up to 25% over a decade. Nigeria is rapidly emerging as a competitive data centre market, supported by extensive connectivity via multiple submarine cables linking it to other African countries.
Egypt is also gaining traction thanks to its favourable location near Europe, competitive land and electricity prices, and enhanced fibre connectivity. Furthermore, nations like Ethiopia, Ghana, and Morocco are increasing investments in data centres, indicating a robust regional demand anticipated in the coming years. Morocco’s Digital Morocco 2030 plan, requiring an investment of $1.1 billion, aims to enhance its digital infrastructure significantly.
Key market trends include strong government support for digital initiatives, the expansion of submarine cables for improved connectivity, and a rise in smart city projects encouraging technological advancements. Africa’s growing AI market now accounts for 2.5% of the global share, prompting the construction of data centres designed specifically for AI workloads, such as Teraco’s JB7 facility, in 2024.
As the region’s data centre landscape evolves, sustainability practices will likely gain prominence, encouraging eco-friendly technologies and increased adoption of robust IT infrastructure solutions.
