Today, data has become as vital to economies as oil was in the 20th century. Across Africa, a digital revolution is underway, with data centres emerging as the new wells fuelling economic growth and technological advancement. These facilities, which store, process, and disseminate vast amounts of information, are becoming critical infrastructure, underpinning everything from financial services to healthcare, education, and government operations.
In 2023, the continent had approximately 645 million internet users, a figure projected to exceed 1.1 billion by 2029. This surge is driven by increasing internet penetration, mobile device usage, and the adoption of cloud computing services. Consequently, the data centre market is projected to reach over $7 billion by 2028, growing at a compound annual growth rate (CAGR) of 7%, according to a 2023 Arizton Advisory & Intelligence report.
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South Africa leads the continent, holding a 63.1% market share in 2021, followed by Nigeria at 12.4%. The country’s dominance is attributed to its advanced infrastructure, favourable business environment, and strategic location. Teraco Data Environments, now majority-owned by Digital Realty, operates Africa’s largest data centre in Johannesburg, with an IT load capacity of 150 MW. Meanwhile, Morocco and Kenya are rising stars in East and North Africa’s digital scene, drawing investments from global tech companies looking to diversify their data geography.
Strategic Investments and Partnerships
Major investments are propelling the expansion of data centres across Africa. In 2021 alone, over $2 billion was invested in African data centre operators, reflecting the continent’s readiness to attract both private capital and public-private partnerships. Africa Data Centres, a subsidiary of Cassava Technologies, has embarked on a $500 million expansion drive, with new hyperscale facilities being developed across Nigeria, South Africa, Egypt, Morocco, and Kenya.
In Nigeria, the company is developing a 10 MW facility in Lagos, aiming to meet the growing demand for colocation and cloud services. This expansion is expected to not only cater to commercial and governmental needs but also create thousands of new jobs directly and indirectly linked to the digital economy.
Public-private partnerships are also playing a crucial role. In Kenya, the government has partnered with Microsoft and UAE-based G42 to build cloud infrastructure and a green data centre through a $1 billion digital investment initiative announced in May 2024. These collaborations align with Africa’s long-term strategy to localise data storage and reduce reliance on overseas servers.
Enhancing Connectivity: The Role of Subsea Cables
Connectivity is the lifeblood of data centres. Africa’s digital transformation is being bolstered by a wave of new subsea cable deployments, which provide high-speed internet access and reduce latency. Google’s Umoja cable, announced in May 2024, will link Kenya to Australia via a 13,000 km subsea route. It will also connect multiple African countries inland, improving resilience and accessibility of digital infrastructure across landlocked regions.
In Togo, the landing of Google’s Equiano subsea cable in March 2022 marked a significant milestone. Managed by CSquared, the cable is expected to add approximately 37,000 new jobs and increase Togo’s economic output by $351 million between 2022 and 2025. Other major cable projects, like Meta’s 2Africa and the PEACE Cable, are also strengthening Africa’s global internet links, enabling faster and cheaper data transmission to the rest of the world.
Sustainability: Powering Data Centres with Green Energy
Power reliability remains a challenge in many African countries. To address this, data centre operators are increasingly turning to renewable energy sources. Teraco is constructing a 120 MW solar photovoltaic power plant in South Africa’s Free State province, aiming to power its data centres sustainably. Similarly, Africa Data Centres plans to achieve carbon neutrality by 2030, aligning with global environmental, social, and governance (ESG) standards.
In Rwanda, the government has launched a 5 MW solar-powered data centre project in collaboration with international investors to meet the growing data needs of East Africa without burdening the national grid. Such green initiatives are not just about saving costs or ticking ESG boxes; they are part of a larger narrative of Africa positioning itself as a competitive, climate-conscious player in the global tech race.
Data Sovereignty and Economic Growth
The localisation of data centres is not only about infrastructure but also about data sovereignty. By hosting data within national borders, countries can enforce data protection laws, enhance cybersecurity, and stimulate local economies. Nigeria’s Data Protection Act, enacted in 2023, mandates that sensitive citizen data must be stored within the country. This has driven up demand for domestic data storage and sparked rapid investments in cloud and colocation infrastructure.
In Ghana, the National Data Centre has become a model for digital sovereignty, helping government ministries, departments, and agencies digitise their operations while protecting citizen information. Meanwhile, Egypt has prioritised its New Administrative Capital as a smart city powered by robust digital infrastructure, including new data centres.
Cybersecurity and Regulatory Frameworks
As data centres become central to national operations, the risk of cyber threats increases. African governments are now paying greater attention to cybersecurity laws and frameworks. South Africa passed the Cybercrimes Act in 2021, and Nigeria’s National Cybersecurity Policy (revised in 2024) outlines how government and private sector players must cooperate to ensure data security.
The African Union has also pushed for regional coordination through the Malabo Convention on Cybersecurity and Personal Data Protection. While adoption is still slow, there’s growing momentum among member states to ratify and implement the treaty, which aims to create a harmonised digital rights landscape across the continent.
Bridging the Digital Divide
Despite the remarkable progress, disparities remain. Many rural communities across Africa still lack reliable internet access, which hinders the inclusive growth of the digital economy. Data centres, while crucial, must be part of a broader strategy to ensure digital inclusion. Governments must invest in last-mile connectivity, digital literacy, and affordable data plans to ensure no one is left behind.
In Senegal, for instance, the government’s Smart Senegal initiative has combined rural fibre deployment with data centre construction to create a holistic ecosystem that empowers citizens through access to digital services. Similar efforts are taking shape in Ethiopia and Uganda, where national broadband plans are integrating with data infrastructure blueprints.
Challenges and Opportunities
While the growth of data centres in Africa presents immense opportunities, challenges remain. These include the need for skilled labour, reliable power supply, financing gaps, and clear regulatory frameworks. Africa currently requires an estimated 700 MW of additional IT load capacity by 2030 to meet growing demand, according to Xalam Analytics.
Yet, the prospects are bright. With continued investments, strategic partnerships, and supportive government policies, Africa is well-positioned to harness the power of data centres to drive economic growth and digital transformation. By 2030, the World Bank projects that digital technologies could add $180 billion to Africa’s GDP.
As data becomes the new oil, Africa’s investment in digital infrastructure will determine its place in the global digital economy. The continent’s ability to build, secure, and sustain data centres will be pivotal in shaping its future, offering a path toward economic diversification, innovation, and inclusive growth.
