As global demand for digital infrastructure grows, Africa is fast becoming a promising frontier for data center development. The continent, long underserved in terms of digital infrastructure, is now seeing a surge in data center investments driven by rising internet penetration, mobile adoption, cloud services demand, and favorable regulatory reforms.
“Africa accounts for less than 1% of the world’s data centre capacity even as mobile data usage grows by around 40% annually — nearly double the global average,” said the report, highlighting a massive infrastructure gap that the new build-outs aim to close”
This quote from a Reuters report underscores the urgent need for digital infrastructure on the continent, with mobile data traffic surging yet hosting capacity still lagging far behind.
The Digital Surge
Over the past decade, Africa’s digital landscape has transformed dramatically. The number of internet users has grown exponentially, powered by affordable smartphones, improved connectivity, and undersea cable expansions such as Equiano, 2Africa, and PEACE. This has triggered demand for local content hosting, cloud computing, and enterprise services — all of which require robust data center infrastructure.
Multinational tech giants like Microsoft, Google, Amazon Web Services, and Huawei have recognized the region’s potential. Microsoft Azure opened data centers in South Africa as early as 2019, and AWS followed suit with its Cape Town region. More recently, Google has announced plans for cloud regions across the continent, including Kenya and Nigeria.
Morocco has partnered with the American tech firm, Iozera in plans to build a cutting edge 386MW Data Center and AI hub that will be located in Tetouan, Morocco.
Rising Local and Regional Players
While global corporations bring in capital and expertise, African companies are also emerging as significant players in the data center space. Liquid Intelligent Technologies (formerly Liquid Telecom) operates several Tier III data centers across countries like South Africa, Kenya, and Zimbabwe. Africa Data Centres, a subsidiary of Cassava Technologies, is rapidly expanding its footprint, targeting over 10 countries in the coming years.
In Nigeria, MainOne (acquired by Equinix) has become a key player, while Raxio Group is developing facilities in Uganda, Ethiopia, Mozambique, and the Democratic Republic of Congo.
MTN Nigeria Launched Sifiso Dabengwa Data Centre, West Africa’s Largest Tier III Data Centre. Roger Shutte who is MTN Nigeria’s General Manager for Infrastructure, revealed to journalists during a press briefing that the facility will be scaling up to 14 or even 20 megawatts, this will depend on the future demand.
Visa is also eyeing a piece of the cake in Nigeria and announced plans to invest in a Visa data center in the country during a visit by the Regional President of Visa for Central and Eastern Europe, the Middle East, and Africa (CEMEA) Mr Andrew Torre.
Airtel Africa has also announced plans to construct Airtel data centers in Nigeria and Kenya. The Nigeira center will have a capacity of 36Mw while the Kenyan one has a planned 7Mw.
In Kenya the government said last year that it was setting aside Sh5.2 billion for the construction of a new data center in Konza Technopolis a new Smart City being constructed outside the capital Nairobi.
Early last year BitCluster became the first Russian company to open a 120 MW data center in Ethiopia. The data center is based in the Ethiopian capital Addis Ababa and covers a total area of 30,000 square meters.
Why Africa? Why Now?
Several key factors are accelerating this growth:
- Population and Market Size: Africa is home to over 1.4 billion people — the world’s youngest and fastest-growing population.
- Digital Transformation: Governments and enterprises are digitizing services, driving demand for cloud infrastructure.
- Data Sovereignty Laws: More African countries are introducing regulations that require local data storage, boosting the need for in-country data centers.
- Green Energy Potential: Countries like Kenya, South Africa, and Ethiopia offer access to renewable energy, which is essential for sustainable data center operations.
Challenges Ahead
Despite the momentum, Africa’s data center boom faces several hurdles. Power reliability remains a critical issue, particularly in countries with unstable electricity grids. High construction and operational costs, limited technical talent, and regulatory bottlenecks can also slow progress. However, increasing collaboration between governments, investors, and developers is helping mitigate these issues.
The Road Ahead
Africa’s data center market is expected to grow at a compound annual rate of over 12% through 2028, according to industry analysts. With the right mix of investment, policy, and innovation, the continent could leapfrog traditional stages of digital development and become a critical node in the global data economy.
From Lagos to Nairobi and Cape Town to Kigali, the rise of data centers in Africa signals not just a technological shift, but a reshaping of the continent’s economic future. Africa is no longer just consuming digital content — it’s becoming a vital hub for storing and distributing it.
