2024 is a big year for the African data centres market. There’s huge growth on the horizon with new hubs popping up and adding to the geographical footprint. The demand for data centres is growing exponentially as Africa’s 1.4billion is set to double by 2050, driving the need for connectivity and access to the top of the agenda. Across the industry 2024 is being coined as the ‘rebound year’ in Africa as 2023 saw deferred momentum, with many projects being delayed or being put on hold. So, what is really going on across Africa and what can we be on the lookout for over the coming 12-18 months.
- Existing hubs, new growth opportunities. The past 5 years have seen new locations arise as investment in data centres gathered momentum. Lagos and Nairobi have become pinnacles for both West and East Africa with companies such as OADC and IX Africa taking the investment leap. According to Dr Ayotunde Coker, CEO OADC and Chairman ADCA, Lagos is set to launch a 10mw data centre every quarter over the coming 18 months. That’s not only a massive step forward for Lagos as a data centre hub, but also a challenge to other locations.
- Due diligence for new investment. Investment has always been key to the success of Africa’s data centres market and traditionally has come from international sources. Yet with the creation of organisations such as Africa 50 local investment within the continent is shifting the equilibrium. It’s now thought that 60% investment is coming from African born sources, with 40% from international. Now, more than ever, due diligence for new investment opportunities is crucial – you have to be considering what you can build, as well as your expectations and whether all of that is proportional to the overall risk. With local investment there are opportunities to give back to the communities, as well as engaging government bodies in certain countries. Countries such as Rwanda, Ghana, Egypt, Morocco, Tanzania and Uganda are becoming focal points for future data centre locations, backed both by local support as well as some international.
- Power access. We all know that the driving force of Africa’s data centres market boils down to power, and more importantly renewables. With sustainability agendas a priority for companies, access to renewables, grid capacity and flexibility are under the microscope. We know that solar is a game changer and is used across South Africa already, but it’s not always a viable option. In countries such as Kenya hydro or natural gas is creating ‘clean grids’ – a successful, alternative solution to renewables to power data centres. Yet, whatever the power source, the growing demand for AI coupled with the need for distribution grids, Africa is at a turning point as it seeks to find creative solutions for clean energy.
These are just some of the topics that arose in our recent webinar where we talked about the status of Africa’s data centres market and the direction it is moving in. The bottom line is that Africa has huge potential to expand its data centres offering and with a collaboration between local and international support the next 12-18 months should prove both exciting and busy.
