FEATURE : DATA CENTRES
Kenya with Ethiopia and Zambia to Malawi , and has recently completed a high-speed ring around Gaborone , Botswana ’ s capital , alongside a new route from Mombasa , Kenya , to the DRC . These networks provide local businesses with cloud access whilst enabling regional data to remain on the continent .
COMPANIES LIKE AFRICA DATA CENTRES , ARE NOW INVESTING IN LOCAL EDUCATIONAL PROGRAMMES TO PREPARE YOUNG TALENT FOR THE GROWING INDUSTRY .
In 2025 , 65 % of Africans are expected to use smartphones to connect to the Internet . Mobile banking has propelled the adoption of digital technology among those populations without traditional banking services . It has stimulated growth in the informal economy , which contributes 35 % of Africa ’ s output and 60 % of employment .
In Nigeria , extreme poverty fell by 4 % in the first year and 8 % in the second year following the introduction of mobile broadband . Increased data centre capacity underpins mobile services , which are vital to supporting Africa ’ s shift from poverty to a better quality of life .
Energy constraints
Despite the positive outlook , Africa ’ s data centre market faces several challenges . Many regions have poor power infrastructure , leaving around 600 million people without access to electricity and , therefore , the Internet . The World Bank and African Development Bank , however , are partnering to provide at least 300 million people with access by 2030 .
The existing power infrastructure is also unreliable for data centre operators , disrupting connectivity , creating service outages , and putting data centre operations at risk . Consequently , operators have situated data centres in industrial zones or near power generation facilities , while others are investing in uninterruptible power supply , UPS systems and diesel generators or exploring renewable energy to reduce their reliance on the national grid .
Operators such as Africa Data centres , in partnership with DPA SA , are building a 12-megawatt solar farm in South Africa to fuel its operations in Cape Town and Johannesburg whilst reducing its reliance on the local grid . The firm also plans to be carbon neutral by 2030 .
Similarly , Teraco , having raised US $ 680 million in funding , is constructing a utility-scale 120MW solar power energy site to fuel its data centres and add power to the national grid . Investing in renewable energy sources ensures more stable and cost-effective energy supplies and supports the environmental and sustainability standards of both customers and investors in these large-scale infrastructure projects .
Data residency
Data sovereignty is part of the new regulatory environment which is shaping Africa ’ s data centre landscape . The 2014 African Union Convention on Cyber Security and Personal Data Protection , also known as the Malabo Convention , was signed by 16 and ratified by 13 countries . Many countries , including Nigeria , Kenya and Zambia , now require data to be processed in their country and consent to transfer it out of the country . This not only enhances cyber security and supports real-time data-processing , but it also improves the cost-competitiveness of African businesses by reducing data transfer and egress fees .
Additionally , the African Continental Free Trade Area , AfCFTA agreement , ratified by 47 out of 55 African nations , aims to establish a single $ 3 trillion GDP customs and trade market across the continent , along with a pan-African payment and settlement system to streamline cross-border transactions .
This will encourage future investment by the DC industry across the continent , stimulate economic activity , and create jobs in those regions .
Way forward
Once trained , many people leave for better-paid opportunities in the US , Europe , and Asia . Therefore , the industry must help prepare sufficient young people for jobs in the data centre sector , understanding that many will go abroad to gain experience . In time , some diaspora professionals return , attracted by better opportunities at home and eager to help build Africa ’ s digital future .
While the African data centre market grows , we should consider whether this growth aligns with the continent ’ s pressing socioeconomic and environmental priorities where large sections of the population suffer from water shortage and are without access to power .
36 INTELLIGENTCIO AFRICA www . intelligentcio . com