As the digital space steadily asserts itself as the commander of the 21st century, it reshapes how nations compete for influence, power, and prosperity. Its battlegrounds are cloud platforms, AI systems, blockchain networks, and the vast oceans of data that power them. Across the globe, companies, governments, and investors have built data centres as the infrastructure backbone of this transformation. These facilities, which store, process, and secure enormous volumes of data, are to the digital economy what ports and railways were to the industrial revolution.
For Africa, the race to establish robust data centre capacity is no longer a matter of ambition but one of urgency. In 2020, estimates indicated that the digital economy contributed 4.5%, approximately US$115 billion to Africa’s GDP. This growth is expected to continue in the coming years. A 2020 study by Google and the International Finance Corporation (IFC) projected that the sector could contribute US$180 billion (5.2%) by 2025 and US$712 billion (8.5%) by 2050. Yet, without adequate data infrastructure, much of this potential could remain an untapped promise.
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At present, Africa hosts less than 2% of the world’s data centre capacity, despite being home to nearly 18% of the global population. This stark mismatch underscores a critical vulnerability: while the continent’s internet penetration has grown to over 43% and mobile penetration exceeds 80%, the supporting infrastructure to store, process, and secure this data locally is grossly inadequate.
The Consequences of the Infrastructure Gap
The implications of this infrastructure shortfall are far-reaching. Without local data centres, African businesses and governments are forced to rely heavily on foreign facilities, particularly in Europe and North America, to store and process their data. This dependency creates multiple risks, from increased operational costs to heightened exposure to data sovereignty and privacy issues. Sensitive national data, when stored offshore, becomes subject to foreign jurisdictions and surveillance frameworks, raising serious concerns about security and autonomy.
Moreover, the absence of robust local facilities slows down service delivery. Latency, the delay in data transmission can have tangible economic costs. For businesses, even milliseconds of delay in data processing can translate into lost revenue, reduced competitiveness, and diminished user experiences. In critical sectors such as banking, healthcare, and e-commerce, these delays can undermine trust and efficiency.
The gap is also a barrier to innovation. Cutting-edge technologies like artificial intelligence, machine learning, and the Internet of Things rely on fast, reliable, and secure data processing. Without the necessary infrastructure, African innovators are left disadvantaged, unable to develop or scale technologies at the same pace as counterparts in regions with mature data ecosystems.
The Economic Stakes
The global data centre market is expected to surpass US$340 billion by 2030, driven by demand for cloud services, AI applications, and streaming platforms. For Africa, participating in this market is not simply about technological pride, it is about economic survival. According to the Africa Data Centres Association, the continent needs up to 1,000 MW of capacity and 700 facilities to match South Africa’s current capacity and meet growing demand. Change, however, is already underway. The investment required for this expansion is substantial, running into tens of billions of dollars.
Without this investment, Africa risks becoming a mere consumer in the global digital economy, paying foreign providers for infrastructure it could develop domestically. This would deepen the continent’s existing trade imbalances and perpetuate its role as an importer of high-value digital services rather than a creator.
Current Efforts and Persistent Challenges
Several African nations have begun to recognise the urgency of this challenge. South Africa, Nigeria, Kenya, and Egypt have emerged as key hubs, attracting investments from global players such as Microsoft, Amazon Web Services, and Google. Local companies, including Teraco Data Environments and Africa Data Centres, are also expanding their footprint.
However, these developments are far from sufficient. The vast majority of African countries still lack the capacity to host even medium-sized facilities. Energy insecurity remains one of the most significant bottlenecks. Data centres require uninterrupted power supply, often in the range of 20 to 50 megawatts for larger facilities. In many African countries, erratic electricity supply forces operators to rely on diesel generators, pushing operational costs up and deterring investors.
Connectivity is another hurdle. While submarine cables such as the Equiano Cable and 2Africa Cable are improving international bandwidth, inland fibre networks remain patchy and expensive. The lack of reliable, affordable last-mile connectivity limits the reach and impact of data centres, especially in landlocked nations.
Regulatory inconsistencies further complicate matters. Countries differ widely in their data protection laws, licensing regimes, and tax policies, creating uncertainty for investors who seek a stable and predictable operating environment.
What is Missing
What is glaringly absent in Africa’s data centre development is a continent-wide strategy that aligns infrastructure investment with the growth of the digital economy. Efforts remain fragmented, with some nations pushing ahead while others lag far behind. Without a coordinated approach, disparities in capacity will deepen, exacerbating digital inequality across the continent.
Furthermore, the lack of strong public-private partnerships is stalling momentum. Governments alone cannot finance the massive infrastructure required, and private investors often hesitate due to political risk, inconsistent regulation, and inadequate incentives.
Another missing piece is skills development. Building and operating data centres requires specialised expertise in engineering, cybersecurity, and network management. Africa’s digital skills gap means that even when facilities are built, there may be a shortage of qualified professionals to run them efficiently.
What Must Be Done
To bridge this gap, African leaders must treat data infrastructure as a strategic national priority, akin to roads, ports, and energy grids. This starts with creating investment-friendly environments that reduce regulatory friction, harmonise data protection laws, and offer tax incentives for local and foreign investors.
Governments should also invest directly in critical infrastructure, particularly in power generation and transmission. Renewable energy, especially solar, presents a viable option for powering data centres sustainably in regions with abundant sunlight. Public-private partnerships can accelerate the rollout of both energy and connectivity infrastructure.
Equally important is the need to foster regional integration. Cross-border data centre networks, facilitated by harmonised regulations and shared investment, can enable smaller economies to benefit from economies of scale. The African Continental Free Trade Area (AfCFTA) could serve as a framework for such collaboration, allowing data to flow seamlessly across borders under common governance standards.
Lastly, education and skills training must be prioritised. Establishing specialised training programmes in partnership with universities, technical colleges, and global technology companies will ensure that Africa has the human capital required to operate and secure its digital infrastructure.
Africa’s digital future hinges on its ability to build, own, and control the infrastructure that underpins the modern economy. Without urgent and coordinated action, the continent risks remaining on the periphery of the global digital order, dependent on others for the very backbone of its economic growth. The opportunity is vast, but so is the cost of inaction. The question is not whether Africa can afford to invest in data centres, it is whether Africa can afford not to.
