Africa is an emerging nation for data center development


CHICAGO, October 4, 2021 / PRNewswire / – In the Middle East & Africa, increasing internet penetration, use of social media and smart initiatives will continue to drive the market over the next few years. Africa is an emerging data center market, and has seen around 15 data center investments in 2020. Growth in adoption of IoT and big data analytics services will drive development rapidly of data centers in the Africa data center market. The market is evolving and investments are expected to increase significantly thanks to contributions from local and global data center operators. The Middle East region has seen investments from telecom service providers as well as global colocation operators. A major asset in the Middle East & Africa market is the low cost of energy.

Observing these rapid and drastic changes in demand and supply patterns has encouraged industry analysts at Arizton to publish comprehensive and data-based information on these current trends in the industry. Arizton has a dedicated vertical that focuses on data center knowledge base across geographies. These market research reports cover a detailed analysis of supply chain disruptions induced by COVID-19, technological innovations, equipment financing, economic impact and a detailed study of the competitive landscape.

Kenya Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The Kenya data center market should reach $ 342 million in 2026, with a CAGR of 12.36% during the period 2021-2026. Kenya is one of the leading data centers in Africa and is considered the gateway to the East African region. Nairobi, the capital, is a place conducive to the development of data centers. The data center market in Kenya includes approximately 6 unique third-party data center service providers, operating around 9 facilities. Over the past 3 to 4 years, the market has grown considerably, with an increase in the development of data centers.


  • More $ 480 million will be invested in the development of data centers through Kenya between 2021 and 2026. During the forecast period, the country will experience investments in around 6 data center facilities.
  • The Kenyan government has established Special Economic Zones (SEZs) to enhance economic growth, offering tax and duty exemptions, and facilitating work permits to attract large and small investments to the country.
  • The 5G commercial network was deployed in Kenya by Safaricom with Nokia in 2021, which will drive digital initiatives such as IoT and big data and increase demand for data centers.
  • In Kenya, on-premise data centers make it easy to digitize. The forecast period will see businesses move to the cloud and colocation data centers. Managed hosting services will be adopted by large companies.
  • Nairobi is called the London for Kenya because it is the true technology hub and is leading the competition to attract investment in data centers as it is one of the global headquarters of the United Nations.

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Nigerian Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The Nigeria data center market should reach $ 218 million in 2026, with a CAGR of 17% over the period 2020-2026. Investments in the Nigerian data center market are primarily driven by factors such as the digitization of advanced technologies, the presence of large operators, internet penetration and government initiatives. Nigeria hosts 11 existing facilities and will assist with the deployment of 9 upcoming facilities spread across 2 cities, including Lagos and Abuja.


  • The outbreak of the COVID-19 pandemic has been a major rapid growth catalyst for the growth of the cloud market in Nigeria, several companies migrating their workload to the cloud platform.
  • The shift of industrial sectors such as BFSI, education, retail, manufacturing and others towards modern technologies such as cloud and big data is likely to promote the growth of the market during the forecast period. .
  • In december 2020, the federal government of Nigeria launched its “Solar Power Naija” project, focusing on 5 million solar connections via solar home installations as well as mini-grids.
  • With the improvement of digital infrastructure and connectivity, an expected increase in the colocation business of cloud service providers is likely to boost the development of on-premises data centers, significantly boosting the colocation market in Nigeria.
  • By 2025, the government plans to increase the share of renewable electricity supply to 10% of the total electricity produced in Nigeria.

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South Africa Data Center Market – Investment Analysis and Growth Opportunities 2021-2026

The South Africa data center market should reach $ 3,071 million in 2026, with a CAGR of 15.17% during the period 2021-2026. South Africa is the largest data center market in Africa. The market consists of approximately 7 unique third-party data center service providers, operating more than 22 facilities. The entry of new hyperscale data center operators is expected to increase in the country during the forecast period. The COVID-19 pandemic has been a powerful market driver for digital transformation initiatives in private and public sector companies in South Africa.


  • The market will witness the entry of global data center colocation service providers through independent data center developments and partnerships or through acquisitions by leading colocation providers in the country.
  • The expansion of 5G services is likely to propel the growth of data centers in the country.
  • Merger and acquisition activities are expected to continue in South Africa during the forecast period. In 2020, Africa Data Centers acquired the Samrand data center from Standard Bank in Johannesburg.
  • Vendors such as IBM, Cisco and Dell Technologies have a strong presence in the market. ODM servers will experience growth as investments in hyperscale data center facilities from cloud service providers, which are expected to increase during the forecast period.
  • Smart PDUs are likely to gain traction with the construction of new data centers. The demand for smart metered, monitored or switched PDUs is likely to dominate the market during the forecast period.

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