Africa Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Africa Data Center Market is segmented by Data Center Size (Large, Massive, Medium, Mega, Small) , by Tier Type (Tier 1 and 2, Tier 3, Tier 4) , by Absorption (Non-Utilized, Utilized) and by Country (Nigeria, South Africa)

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Africa Data Center Market Size

Africa Data Center Market Summary
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https://s3.mordorlabs.com/study%20period/1629296433432_test~study_period_study_period.svg Study Period 2017 - 2029
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Base Year For Estimation 2022
https://s3.mordorlabs.com/cagr/1629296433433_test~cagr_cagr.svg CAGR 15.41 %
https://s3.mordorlabs.com/hydraulic_fluids/1629285650767_test~hydraulic_fluids_hydraulic_fluids.svg Largest Share by Tier Type Tier 3
https://s3.mordorlabs.com/globe/1629285706162_test~globe_globe.svg Largest Share by Country South Africa
https://s3.mordorintelligence.com/cagr/1629296433433_test~cagr_cagr.svg Market Concentration High

Major Players
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*Disclaimer: Major Players sorted in no particular order

Key Players

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Africa Data Center Market Analysis

The Africa Data Center Market is projected to register a CAGR of 15.41%

  • IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 1226.8 MW by 2029.
  • Raised Floor Space: The total raised floor area of the country is expected to increase to 5.2 million sq. ft by 2029.
  • Installed Racks: The number of installed racks is expected to reach 260,783 units by 2029. South Africa is expected to house the maximum number of racks by 2029.
  • DC Facilities: There are 37 colocation data center facilities in Africa. South Africa holds the highest country-wise share in the region. Growing connectivity, increasing demand for cloud services, and rising government incentives for land and tax are a few factors that have accelerated the growth of data center facilities in Africa.
  • Leading Market Player: Teraco Data Environment led the market in 2022, with a share of 35.65% and an operational capacity of 150 MW. The company has announced plans to launch a 30 MW hyperscale facility in Ekurhuleni, South Africa, east of Johannesburg.

Africa Data Center Market Trends

This section covers the major market trends shaping the Africa Data Center Market according to our research experts:

Tier 3 is the largest Tier Type

  • Increasing developments in artificial intelligence, IoT, and blockchain technology across varying sectors, including telecom, cloud, and government, have contributed to the growing data consumption in Africa.
  • Africa has more than 400 technology hubs across 93 cities in 42 countries. In 2022, the African start-ups raised about USD 4.8 billion through 1,000 deals, compared to about USD 4.33 billion raised across 820 rounds in 2021. These technology start-ups may require low latency and high-speed, uninterrupted internet and cloud facilities to ensure continuous customer service. The increasing demand for better infrastructure may fuel the demand for more IT load capacity and more Tier 3 and 4-certified data center facilities.
  • The long-term growth vision is better suited to set up at least Tier 3-certified data centers to cover the initial high cost of establishing the facilities. However, Tier 1 & 2 facilities were losing traction, given the limited power availability. Hence, to ensure the longevity of investments and tackle the increasing demand for faster and more reliable data storage and processing facilities, companies are focusing on constructing Tier 3 and 4 facilities.
  • Tier 4 data centers offer higher bandwidth speed, low latency, better connectivity, and disaster recovery options. Thus, during the forecast period, the Tier 4 segment is expected to record a CAGR of 18.02%, compared to the Tier 3 segment at 14.40% and the Tier 1 & 2 segment at 3.26%.
Africa Data Center Market: Africa Data Center Market, CAGR, %, By Tier Type, 2023 - 2029

South Africa is the largest Country

  • South Africa is the most prominent country for data centers in Africa since the country comprises about 42 million internet users. It also has internet penetration rates closer to 70%, and its adaptation to e-commerce and other demand-generating aspects is growing. This, in turn, has led data center operators to set up their data center facilities in the region to leverage the increasing demand for the facilities.
  • South Africa held a market share of around 63.1%, followed by the Rest of African countries at 24.4%, and Nigeria accounted for 12.4% in 2021. The company that has strengthened its market share in South Africa is Teraco Data Environments (acquired by Digital Realty), which currently has a market share of 36.72% and operates at an IT load capacity of 150 MW. Through its subsidiaries, Medallion Communication Ltd and Teraco Data Environments, companies such as Digital Realty have announced plans to develop mega and massive data centers with IT load capacities of 160 MW and 110 MW during the forecast period.
  • Cape Town has been ranked among the top smart cities worldwide for its IoT and real-time data analysis through sensor implementation. Smart cities create huge amounts of data owing to the varying smart services imparted to the citizens.
  • The country is expected to witness more such smart cities as operators plan to extend the deployment of IoT-based devices. The Rest of Africa segment also comprises smart cities like Kigali, Rwanda, which have sensors to measure air quality, monitor the power grid's safety, and detect water leakages. Due to all the above factors, the South African data center market is expected to grow and register a CAGR of 15.68% over the forecast period.
Africa Data Center Market: Africa Data Center Market, CAGR, %, By Country, 2023 - 2029

Africa Data Center Industry Overview

The Africa Data Center Market is fairly consolidated, with the top five companies occupying 67.54%. The major players in this market are Africa Data Centres (Cassava Technologies), Open Access, Rack Centre Limited, Teraco Data Environments (Digital Realty) and WIOCC’s OADC (sorted alphabetically).

Africa Data Center Market Leaders

  1. Africa Data Centres (Cassava Technologies)

  2. Open Access

  3. Rack Centre Limited

  4. Teraco Data Environments (Digital Realty)

  5. WIOCC’s OADC

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Market Concentration
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Africa Data Center Market News

  • February 2023: The company has announced plans of opening a new data center in Senegal, the facility would be in close proximity to the cable landing station having 2Africa submarine cable.
  • December 2022: With a USD 160 million data center investment in JOHANNESBURG, Equinix, Inc., a provider of digital infrastructure, wants to expand its presence on the African continent beyond its current locations in NIGERIA, GHANA, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa; JN1, a new 4.0 MW data center, will offer more than 20,000 gross square feet of colocation space and 690+ cabinets. Also, there will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross square feet of colocation space and 3,450+ cabinets.
  • December 2022: OADC announced the expansion of its data centers in Nigeria and South Africa and also stated its completion of phase 2 Durban DC facility and two upcoming new facilities in Cape Town in the near future.

Africa Data Center Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1. Study Assumptions & Market Definition

    2. 1.2. Scope of the Study​

    3. 1.3. Research Methodology

  2. 2. MARKET OUTLOOK

    1. 2.1. IT Load Capacity

    2. 2.2. Raised Floor Space

    3. 2.3. Colocation Revenue

    4. 2.4. Installed Racks

    5. 2.5. Rack Space Utilization

    6. 2.6. Submarine Cable

  3. 3. KEY INDUSTRY TRENDS

    1. 3.1. Smartphone Users

    2. 3.2. Data Traffic Per Smartphone

    3. 3.3. Mobile Data Speed

    4. 3.4. Broadband Data Speed

    5. 3.5. Fiber Connectivity Network

    6. 3.6. Regulatory Framework

    7. 3.7. Value Chain & Distribution Channel Analysis

  4. 4. MARKET SEGMENTATION

    1. 4.1. Data Center Size

      1. 4.1.1. Large

      2. 4.1.2. Massive

      3. 4.1.3. Medium

      4. 4.1.4. Mega

      5. 4.1.5. Small

    2. 4.2. Tier Type

      1. 4.2.1. Tier 1 and 2

      2. 4.2.2. Tier 3

      3. 4.2.3. Tier 4

    3. 4.3. Absorption

      1. 4.3.1. Non-Utilized

      2. 4.3.2. Utilized

        1. 4.3.2.1. By Colocation Type

          1. 4.3.2.1.1. Hyperscale

          2. 4.3.2.1.2. Retail

          3. 4.3.2.1.3. Wholesale

        2. 4.3.2.2. By End User

          1. 4.3.2.2.1. BFSI

          2. 4.3.2.2.2. Cloud

          3. 4.3.2.2.3. E-Commerce

          4. 4.3.2.2.4. Government

          5. 4.3.2.2.5. Manufacturing

          6. 4.3.2.2.6. Media & Entertainment

          7. 4.3.2.2.7. Telecom

          8. 4.3.2.2.8. Other End User

    4. 4.4. Country

      1. 4.4.1. Nigeria

      2. 4.4.2. South Africa

      3. 4.4.3. Rest of Africa

  5. 5. COMPETITIVE LANDSCAPE

    1. 5.1. Market Share Analysis

    2. 5.2. Company Landscape

    3. 5.3. Company Profiles

      1. 5.3.1. Africa Data Centres (Cassava Technologies)

      2. 5.3.2. Business Connexion (Pty) Ltd.

      3. 5.3.3. Digital Parks Africa (PTY) LTD.

      4. 5.3.4. Digital Realty Trust, Inc.

      5. 5.3.5. Equinix, Inc.

      6. 5.3.6. ONIX data center

      7. 5.3.7. Open Access

      8. 5.3.8. Rack Centre Limited

      9. 5.3.9. Raxio Group B.V

      10. 5.3.10. Teraco Data Environments (Digital Realty)

      11. 5.3.11. Vantage Data Centers, LLC

      12. 5.3.12. WIOCC’s OADC

    5. 5.4. LIST OF COMPANIES STUDIED

  6. 6. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS

  7. 7. APPENDIX

    1. 7.1. Global Overview

      1. 7.1.1. Overview

      2. 7.1.2. Porter’s Five Forces Framework

      3. 7.1.3. Global Value Chain Analysis

      4. 7.1.4. Global Market Size and DROs

    2. 7.2. Sources & References

    3. 7.3. List of Tables & Figures

    4. 7.4. Primary Insights

    5. 7.5. Data Pack

    6. 7.6. Glossary of Terms

List of Tables & Figures

  1. Figure 1:  
  2. AFRICA DATA CENTER MARKET, IT LOAD CAPACITY, VOLUME IN MW, 2017 - 2029
  1. Figure 2:  
  2. AFRICA DATA CENTER MARKET, RAISED FLOOR SPACE, VOLUME IN SQ. FT.(000'), 2017 - 2029
  1. Figure 3:  
  2. AFRICA DATA CENTER MARKET, COLOCATION REVENUE, VALUE IN USD MILLION, 2017 - 2029
  1. Figure 4:  
  2. AFRICA DATA CENTER MARKET, INSTALLED RACKS, VALUE IN UNIT, 2017 - 2029
  1. Figure 5:  
  2. AFRICA DATA CENTER MARKET, RACK SPACE UTILIZATION, VALUE IN (%), 2017 - 2029
  1. Figure 6:  
  2. AFRICA DATA CENTER MARKET, SMARTPHONE USERS, VOLUME IN MILLION, 2017 - 2029
  1. Figure 7:  
  2. AFRICA DATA CENTER MARKET, DATA TRAFFIC PER SMARTPHONE, VOLUME IN GB, 2017 - 2029
  1. Figure 8:  
  2. AFRICA DATA CENTER MARKET, MOBILE DATA SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 9:  
  2. AFRICA DATA CENTER MARKET, BROADBAND SPEED, VOLUME IN MBPS, 2017 - 2029
  1. Figure 10:  
  2. AFRICA DATA CENTER MARKET, FIBER CONNECTIVITY NETWORK, VOLUME IN KILOMETER, 2017 - 2029
  1. Figure 11:  
  2. AFRICA DATA CENTER MARKET, VOLUME, MW, 2017 - 2029
  1. Figure 12:  
  2. AFRICA DATA CENTER MARKET, BY DATA CENTER SIZE, VOLUME IN MW, 2017 - 2029
  1. Figure 13:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY DATA CENTER SIZE, 2017 - 2023 - 2029
  1. Figure 14:  
  2. AFRICA DATA CENTER MARKET, LARGE, VOLUME IN MW, 2017 - 2029
  1. Figure 15:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, LARGE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 16:  
  2. AFRICA DATA CENTER MARKET, MASSIVE, VOLUME IN MW, 2017 - 2029
  1. Figure 17:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, MASSIVE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 18:  
  2. AFRICA DATA CENTER MARKET, MEDIUM, VOLUME IN MW, 2017 - 2029
  1. Figure 19:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, MEDIUM, VOLUME SHARE (%), 2022 - 2029
  1. Figure 20:  
  2. AFRICA DATA CENTER MARKET, MEGA, VOLUME IN MW, 2017 - 2029
  1. Figure 21:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, MEGA, VOLUME SHARE (%), 2022 - 2029
  1. Figure 22:  
  2. AFRICA DATA CENTER MARKET, SMALL, VOLUME IN MW, 2017 - 2029
  1. Figure 23:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, SMALL, VOLUME SHARE (%), 2022 - 2029
  1. Figure 24:  
  2. AFRICA DATA CENTER MARKET, BY TIER TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 25:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY TIER TYPE, 2017 - 2023 - 2029
  1. Figure 26:  
  2. AFRICA DATA CENTER MARKET, TIER 1&2, VOLUME IN MW, 2017 - 2029
  1. Figure 27:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, TIER 1&2, VOLUME SHARE (%), 2022 - 2029
  1. Figure 28:  
  2. AFRICA DATA CENTER MARKET, TIER 3, VOLUME IN MW, 2017 - 2029
  1. Figure 29:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, TIER 3, VOLUME SHARE (%), 2022 - 2029
  1. Figure 30:  
  2. AFRICA DATA CENTER MARKET, TIER 4, VOLUME IN MW, 2017 - 2029
  1. Figure 31:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, TIER 4, VOLUME SHARE (%), 2022 - 2029
  1. Figure 32:  
  2. AFRICA DATA CENTER MARKET, BY ABSORPTION, VOLUME IN MW, 2017 - 2029
  1. Figure 33:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY ABSORPTION, 2017 - 2023 - 2029
  1. Figure 34:  
  2. AFRICA DATA CENTER MARKET, NON-UTILIZED, VOLUME IN MW, 2017 - 2029
  1. Figure 35:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, NON-UTILIZED, VOLUME SHARE (%), 2022 - 2029
  1. Figure 36:  
  2. AFRICA DATA CENTER MARKET, BY COLOCATION TYPE, VOLUME IN MW, 2017 - 2029
  1. Figure 37:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY COLOCATION TYPE, 2017 - 2023 - 2029
  1. Figure 38:  
  2. AFRICA DATA CENTER MARKET, HYPERSCALE, VOLUME IN MW, 2017 - 2029
  1. Figure 39:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, HYPERSCALE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 40:  
  2. AFRICA DATA CENTER MARKET, RETAIL, VOLUME IN MW, 2017 - 2029
  1. Figure 41:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, RETAIL, VOLUME SHARE (%), 2022 - 2029
  1. Figure 42:  
  2. AFRICA DATA CENTER MARKET, WHOLESALE, VOLUME IN MW, 2017 - 2029
  1. Figure 43:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, WHOLESALE, VOLUME SHARE (%), 2022 - 2029
  1. Figure 44:  
  2. AFRICA DATA CENTER MARKET, BY END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 45:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY END USER, 2017 - 2023 - 2029
  1. Figure 46:  
  2. AFRICA DATA CENTER MARKET, BFSI, VOLUME IN MW, 2017 - 2029
  1. Figure 47:  
  2. AFRICA DATA CENTER MARKET, CLOUD, VOLUME IN MW, 2017 - 2029
  1. Figure 48:  
  2. AFRICA DATA CENTER MARKET, E-COMMERCE, VOLUME IN MW, 2017 - 2029
  1. Figure 49:  
  2. AFRICA DATA CENTER MARKET, GOVERNMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 50:  
  2. AFRICA DATA CENTER MARKET, MANUFACTURING, VOLUME IN MW, 2017 - 2029
  1. Figure 51:  
  2. AFRICA DATA CENTER MARKET, MEDIA & ENTERTAINMENT, VOLUME IN MW, 2017 - 2029
  1. Figure 52:  
  2. AFRICA DATA CENTER MARKET, TELECOM, VOLUME IN MW, 2017 - 2029
  1. Figure 53:  
  2. AFRICA DATA CENTER MARKET, OTHER END USER, VOLUME IN MW, 2017 - 2029
  1. Figure 54:  
  2. AFRICA DATA CENTER MARKET, BY COUNTRY, VOLUME IN MW, 2017 - 2029
  1. Figure 55:  
  2. AFRICA DATA CENTER MARKET, SHARE(%), BY COUNTRY, 2017 - 2023 - 2029
  1. Figure 56:  
  2. AFRICA DATA CENTER MARKET, NIGERIA, VOLUME IN MW, 2017 - 2029
  1. Figure 57:  
  2. AFRICA DATA CENTER MARKET, SOUTH AFRICA, VOLUME IN MW, 2017 - 2029
  1. Figure 58:  
  2. AFRICA DATA CENTER MARKET, REST OF AFRICA, VOLUME IN MW, 2017 - 2029
  1. Figure 59:  
  2. AFRICA DATA CENTER MARKET, BY MAJOR PLAYER IT LOAD CAPACITY, 2022

Africa Data Center Industry Segmentation

Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption. Nigeria, South Africa are covered as segments by Country.
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
Country
Nigeria
South Africa
Rest of Africa
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Market Definition

  • IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
  • ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
  • RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
  • DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
  • TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
  • COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
  • END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
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Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
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Africa Data Center Market Research FAQs

The Africa Data Center Market size is expected to reach 519.30 mw in 2023 and grow at a CAGR of 15.41% to reach 1.23 thousand mw by 2029.

In 2023, the Africa Data Center Market size is expected to reach 519.30 mw.

Africa Data Centres (Cassava Technologies), Open Access, Rack Centre Limited, Teraco Data Environments (Digital Realty) and WIOCC’s OADC are the major companies operating in the Africa Data Center Market.

In the Africa Data Center Market, the Tier 3 segment accounts for the largest share by tier type.

In 2023, South Africa accounts for the largest share by country in the Africa Data Center Market.

Africa Data Center Industry Report

Statistics for the 2022 Africa Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Africa Data Center analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Africa Data Center Market Report Snapshots