Private capital investment needed for Africa data centres
A new report from the Africa Data Centres Association provides a much needed glimpse into the current state of data centre markets across the continent.
Private capital investment needed for Africa data centres
A reconfiguration of infrastructure is required in Africa yet the gap between ambition and what has actually been achieved remains wide. At a time when market growth is forecast at 17.5% across the coming year, capital is needed to support the growth of AI infrastructure as the shift to the digitalization of economies across the continent continues with private capital identified as the most preferred source.
Inevitably power remains a major constraint across most countries and underscores the fragmented energy landscape.
“Overall, the data confirms that while demand fundamentals remain strong, infrastructure growth hinges on resolving core structural constraints unique to each country, with significant disparities in terms of access to skilled talent, stable power supply, and predictable regulatory frameworks.”
Geographic expansion was cited as a key growth vector highlighting perhaps an acceleration of merged economies and regions across the continent. The survey notes that despite the African Continental Free Trade Area (AfCFTA) being a landmark policy initiative, its perceived impact on the carrier-neutral data centre market remains limited at this stage. Clearly operators are seeking alternative solutions.
Interestingly the survey found some operators are still keen to exploit underutilised capacity. Around a quarter of data centres in the survey already have dedicated AI-ready racks.
Investment opportunities are open as Africa data centres remain critical to the expansion and success of digital economies across the continent.
Thanks to Faith Waithaka and Paul-François Cattier for this new insight.