Artificial intelligence is creating new opportunities for investment, productivity and economic transformation worldwide. For Africa, the next phase of this technological shift could extend beyond software development to the infrastructure that makes AI possible: data centres, computing capacity, digital connectivity and dependable electricity.
Yet the continent’s ability to attract a greater share of this investment will depend on addressing persistent infrastructure gaps. A report published on 20 October 2026, citing analysis from KPMG, warned that Africa risks missing growing investment opportunities in artificial intelligence and data centres unless governments improve electricity supply and strengthen supporting infrastructure.
READ ALSO: Africa’s Biodiversity: Building Prosperity Through Conservation and Community Participation
The opportunity is significant. McKinsey estimates that Africa could require between $10 billion and $20 billion in data-centre investment by 2030, excluding fit-out costs. The continent’s data-centre capacity could expand from approximately 0.4 gigawatts to between 1.5 and 2.2 gigawatts over the same period, with the wider value chain potentially generating $20 billion to $30 billion in revenue.
Data centres provide the computing power and storage required for cloud services, digital platforms and increasingly sophisticated AI applications. As demand for these services grows, countries with dependable electricity, strong digital networks and predictable regulatory environments could attract more infrastructure investment.
For African economies, the benefits could extend beyond hosting digital infrastructure. Data centres can support the development of local technology businesses, create specialised technical jobs and improve access to computing resources for companies, researchers and public institutions.
However, these opportunities come with substantial challenges. Data centres require continuous electricity, reliable cooling systems and high-capacity connectivity. In markets where businesses already contend with unreliable power, the cost of securing dependable electricity can undermine the commercial case for investment.
The scale of Africa’s electricity challenge is particularly relevant. The International Energy Agency estimates that approximately 600 million people in sub-Saharan Africa lacked access to electricity in 2024. Expanding digital infrastructure must therefore proceed alongside efforts to improve electricity access for households, businesses and essential services.
Nigeria faces a similar balancing act. Its large population and growing digital economy offer a substantial market for AI-related services, but attracting major infrastructure investment will require improvements in power reliability, connectivity, technical skills and policy certainty.
Governments and private investors can respond by expanding renewable energy, strengthening transmission networks, developing efficient data-centre facilities and supporting local talent in computing and engineering. Regional cooperation could also help countries pool demand and build shared digital infrastructure where individual markets lack sufficient scale.
Nevertheless, attracting investment should not be the only measure of success. African economies must also build local capabilities, develop home-grown technology businesses and ensure that digital infrastructure supports productive economic activity.
Africa’s AI opportunity is therefore inseparable from its energy and industrial development agenda. The countries that combine reliable power with digital infrastructure, skilled workers and clear investment frameworks will be better positioned to turn growing global demand for AI into long-term economic value.
