INDUSTRY WATCH
Two of Africa ’ s biggest economies suffer regular power grid blackouts . South Africa continues to grapple with a formidable energy challenge caused by a strained and unreliable power grid prone to rolling outages . In Nigeria , the grid crisis has reached alarming levels , with two total grid collapses occurring within a single week in September 2023 .
Such grid instability poses a significant hurdle for datacentre development , as these are facilities that require constant and uninterrupted power . The situation is being exacerbated by ageing infrastructure , maintenance issues , and a surge in energy demand .
Yet , the situation in both countries and across the African continent also present a unique set of opportunities for innovation . Datacentre developers in South Africa and Nigeria could explore alternative power solutions , such as microgrids and demand response mechanisms , to fortify their energy ecosystems and at the same time fuel the growth of their digital economies .
At the same time , local players are emerging . Typical projects include Liquid Intelligent Technologies ’ 10MW datacentre in Lagos , Nigeria . Africa Data Centres ’ new facility in Accra , Ghana with an initial capacity of 10MW , and the potential to expand to 30MW is the largest datacentre facility in West Africa outside Nigeria .
Raxio Data Centres has secured a sustainabilitylinked $ 170m loan from a consortium of investors , who include French development finance institution Proparco , Emerging Africa Infrastructure Fund , EAIF and investment manager Ninety-One . Raxio aims to accelerate the expansion of its facilities in seven African markets .
However , the growth of datacentre facilities in both size and number across Africa inevitably raises concerns about their environmental impact . Globally there is a need for the industry to take a more sustainable approach to minimise its carbon footprint and new builds in Africa present a sustainability opportunity which must not be wasted .
This juxtaposition of challenge and opportunity highlights the imperative for innovative and sustainable energy solutions in an increasingly data-driven world . Sector growth in Africa ’ s digital services in line with the rollout of off-grid power , increasing internet penetration , rising smartphone usage and e-commerce have sparked a rush into datacentres .
Existing and future investment figures are impressive , and demand drivers are accelerating , but such rapid growth should not be delivered in a gold rush fever that ignores the opportunities to respond to demand with long-term , efficient and sustainable facilities .
Booming datacentre industry
There is much to be optimistic about in Africa ’ s datacentre space . A report from market research group Arizton , found $ 2.6bn was invested in the market in 2021 . It is expected that $ 5.4bn will be invested by 2027 , at a compound annual growth rate of 12.73 % over five years .
Digital Realty , bought Teraco in 2022 ; Equinix , $ 320m acquisition of MainOne in December 2021 to expand in Ghana , the Ivory Coast , and Nigeria ; and Vantage $ 1bn invested with plans for more , have all made significant market moves in South Africa and are pushing into new territories across the continent .
Simply building as before and then fighting to get grid energy by relying on Africa ’ s power generation mix that is heavily reliant on traditional sources such as coal , oil , and natural gas is not viable .
Crucial for the industry is developers choosing to move away from conservative design approaches and adopting more sustainable practices . Only through the use of energy-efficient technologies run off renewable energy dominant microgrids can datacentres expect to significantly reduce their emissions profiles .
In short , the question is whether the industry is willing to leapfrog itself to adopting new sustainable designs , technologies , energy sources and practices .
Connectivity as driver
Power and connectivity can mean different things in different markets of Africa . Of Africa ’ s 1.2bn population , roughly half , 600 million people do not have a dependable networked electricity supply . In Sub- Saharan Africa , two-thirds of people have no regular access to electricity .
This is being changed through the development of offgrid power systems . Much of this off-grid solar power is largely used to charge the more than 1bn mobile phone handsets as people rush to get connected and online .
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