Data Center Construction Market in Africa to Witness Investment Opportunities of $2.53 Billion by 2029 - Arizton - Seite 2

Market Dynamics     

• Increasing Adoption of Cloud Services
• Growth in Penetration of Big Data & IoT
• Rise in Renewable Energy Adoption
• Increase in Submarine Cable & Inland Connectivity

 

 

The African region has a population surge, urbanization, and digitalization, leading to increased power consumption, carbon emissions, and environmental concerns. Notably, data centers have grown across various locations recently. The concern of controlling carbon emissions and operating data centers sustainably is increasing with the growing number of data centers. In response, data center operators and government entities increasingly embrace sustainable practices, such as incorporating renewable energy into power facilities. As the demand for hyperscale investment rises, adopting renewable energy in data centers is expected to become more prevalent for long-term environmental benefits.

The South African data center construction market is one of the major data center markets in the African region. The major data center companies involved in development include NTT DATA, Vantage Data Centers, Africa Data Centres, Equinix, Digital Realty (Teraco), and Open Access Data Centres (OADC). Low electricity and land costs, renewable energy projects, data protection laws, a rise of digital technologies, such as AI & big data, better internet connections, deployment of submarine cables, uptake in cloud services, and demand for strong data storage and processing capabilities, and many more, are the major factors expected to drive the data center market. Some new data center developments announced in South Africa include.

• In November 2023, Open Access Data Centres (OADC) will expand its Johannesburg data center facility in South Africa, expanding its power capacity to 4MW and 600 racks, expected to be complete in Q1 2024.
• In November 2023, the Teraco (Digital Realty) DB1 facility in Durban completed its expansion up to 2 MW and 2,000 sqm of white space.
• In November 2023, Teraco (Digital Realty) is building a new data center in Cape Town, South Africa.

Data Center Investors