FEATURE : DATA CENTRES
While the African data centre market grows , we should consider whether this growth aligns with the continent ’ s pressing socioeconomic and environmental priorities . Does investment in data centres risk diverting critical resources from communities ? Or could the industry use this as an opportunity to play a pivotal role in shaping the economic development of the continent , asks
Mike Meyer at Portman Partners
Africa is home to 1.5 billion people , or roughly 18 % of the world ’ s population . By the end of the century , it will be almost 40 %. And with an average age of just 19 years , the world ’ s youngest population is accelerating the continent ’ s adoption of digital innovation to create work , build businesses , educate themselves , and ensure communities thrive .
Currently , around 43 % of Africans , some 645 million people , use the Internet ; by 2029 , this number is estimated to reach 1.1 billion . However , access varies because of poor digital infrastructure . According to the World Bank , in some regions of Eastern and Southern Africa , only 24 % of the population uses the Internet .
A skilled workforce is needed to sustain Africa ’ s growing digital infrastructure and to build its own data centre capabilities . By 2030 , it is expected that there will be around 230 million jobs requiring digital expertise . Currently , however , there is an acute shortage of trained professionals in the region .
Government and private-sector partnerships are essential for closing the skills gap . Initiatives that provide digital training to young Africans are vital in creating a sustainable talent pipeline for the data centre and technology industries . Many companies , such as Africa Data centres , are now investing in local educational programmes to prepare young talent for the growing industry .
According to the UN , the region represents the biggest economic growth opportunity globally .
Data centres
Africa ’ s data centre market is growing rapidly in response to rising demand for Internet access , cloud computing and digital services across the continent . Valued at US $ 2.7 billion in 2021 , the industry is expected to reach US $ 5.4 billion by 2027 , as an anticipated 70 % of small to medium-sized enterprises and government agencies adopt cloud technology and their need for data storage and computing capability grows .
The fastest-growing data centre markets across Africa are Nigeria , South Africa , and Egypt , followed by Kenya , Morocco , and Algeria . Countries such as Côte d ’ Ivoire , Ghana , Tanzania , and Cameroon are expanding at a slower rate , and Senegal , Angola , Uganda , Ethiopia , Rwanda , and Mozambique are building capacity more slowly , yet still recognise the potential for digital transformation .
Yet Africa only represents 2 % of global data centre capacity , half of which is based in South Africa . So substantial investment is needed to meet growing demand . The ADCA reports that an additional 700 facilities providing 1000MW are needed to serve the continent ’ s needs , especially as entrepreneurs , businesses , and governments build digital solutions .
Currently , Africa ’ s data centre market is a mix of local and international operators . Firms like Teraco Data Environments , Africa Data centres , and Vantage Data centres are expanding their footprints across regions as demand for colocation and cloud services increases . However , facilities are often built to hyperscaler specifications to meet the needs of global technology giants such as Meta and Amazon .
Can data centre growth drive Africa ’ s economic development ?
34 INTELLIGENTCIO AFRICA www . intelligentcio . com