INTELLIGENT BRANDS // Cloud
Chinese hyperscalers, Alibaba Cloud and Huawei Cloud, investing in local cloud regions
Chinese cloud providers are becoming a rising force in South Africa’ s digital infrastructure race. While global cloud narratives often spotlight American providers, Alibaba Cloud and Huawei Cloud are changing the equation through local presence, sector-specific partnerships, and energy-conscious infrastructure design.
According to Xalam Analytics, South Africa’ s cloud market is projected to reach R46 billion by 2027. Mayekiso says the providers investing in local infrastructure now will be best positioned to lead this high-growth segment. He points out that 88 % of CIOs in regulated sectors view data sovereignty as a top concern, referencing a 2024 IDC survey.
These investments are timely. Africa’ s AI market is projected to the $ 4.51 billion mark by year-end, according to Statista. Huawei’ s private 5G networks already support over 100 mining sites globally, with multiple deployments underway in Africa.
“ Since 2019, Chinese hyperscalers have built multiple availability zones and local data centres in Johannesburg and Cape Town,” says Jones Mayekiso, Technical Solutions Engineer at IPT.“ This has brought lowlatency, high-throughput cloud computing directly into the South African market.”
This move supports compliance with local regulations such as POPIA and is particularly critical for banks, state departments, and regulated industries.
Beyond regulatory alignment, Mayekiso highlights the importance of strategic partnerships. Huawei, MTN, and China Telecom have launched joint initiatives to accelerate local innovation. Among these is Africa’ s largest private 5G mining network, built for a major industrial client.
“ This is not a proof of concept. It is a functioning ecosystem using private cloud, AI, and IoT for real-time industrial operations,” he adds.
Geopolitical friction, regional fragmentation, and margin pressure are slowing growth. The real challenge is not expansion. It is reinvention. To stay competitive, they must rethink the model. That means more transparency and more unified product portfolios. It also means better pricing frameworks and faster infrastructure rollout. It comes down to smarter, not just faster, scaling.
Energy is the final critical variable.“ Cloud data centres cannot function without power stability,” says Mayekiso.
A 2022 Uptime Institute study showed that 43 % of severe global data centre
Jones Mayekiso, Technical Solutions Engineer, IPT
outages were linked to power failures. The International Energy Agency predicts that AI workloads could double total data centre electricity use by 2026. South Africa’ s data centres currently consume over 500 megawatts per year. That figure is expected to triple by 2030.
“ Power is no longer an afterthought but a design principle. Chinese providers that collaborate with local utilities have an edge. They can deliver reliable, scalable services while avoiding outages and building trust.”
The shift toward localised, purpose-built cloud services is gaining momentum. Mayekiso believes proximity, partnerships, and power will continue to drive the next phase of hyperscaler strategy in South Africa. The market does not need the loudest voice. It needs the provider who is building for its realities.
IPT is a managed IT services and cybersecurity provider with over 20 years of experience in South Africa. The organisation specialises in IT infrastructure, cloud solutions, and cybersecurity. p
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