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Oxford Business Group, in partnership with the African Data Center Association (ADCA), has launched its latest Focus Report entitled ‘Data Centers in Africa’, offering insight into the central role of data centers in driving the continent’s digital evolution .
The comprehensive report delves into the complex landscape of Africa’s Information and Communications Technology (ICT) sector. It examines how data centers contribute to economic growth, sustainability efforts, bridging the ICT skills gap, regulatory frameworks and the imperative to integrate environmental responsibility into their operations.
Africa’s data center market is poised for substantial growth, with a projected 50% increase in capacity by 2026. Fueled by a growing digital economy and increasing internet penetration, the continent presents lucrative opportunities despite infrastructure and regulatory challenges .
The report highlights Africa’s evolving data center ecosystem, analyzing infrastructure development, broadband expansion and regulatory frameworks. It highlights the importance of bridging the ICT skills gap and integrating sustainability into data center operations. With a focus on environmental responsibility and innovation, Africa’s data center sector is leading digital transformation and sustainable economic growth across the continent.
Key findings from the report reveal significant capacity growth, with Africa’s data center capacity expected to grow by 50% between 2021 and 2026. However, the distribution of data centers across the continent remains uneven, with some regions lack adequate facilities, presenting opportunities for further development.
Government initiatives play a critical role in increasing data center capacity. Across the continent they are actively promoting partnerships with international cloud service providers and implementing initiatives to move data to national data centers and the supporting infrastructure required as a result.
Bridging the ICT skills gap is recognized as a critical factor in the wider adoption of the Internet and increased demand for data center capacity. African start-ups and digital professionals play a central role in providing digital skills training.
In addition, the report highlights the growing focus on data governance in African countries, with regulations aligned with global standards, with significant implications for data center growth in the coming years.
Sustainability is also a key area of focus, with efforts being made to establish energy-efficient practices and address water consumption in cooling systems, as Africa’s high temperatures require additional cooling.
Ayotunde Coker, President of ADCA, emphasizes the urgent need for collective efforts, including special economic zones and renewable energy incentives, to unlock Africa’s digital potential and accelerate its growth.
“As Africa leads this transformative wave, data centers are emerging as a driver of regional growth, fueled by high-speed fiber connections and strategic investments. Key markets such as Nigeria, Kenya, Egypt and Morocco are leveraging their competitive advantages to attract investment and accelerate the development of digital infrastructure,” he stressed.
Karine Loehman, OBG Managing Director for Africa, is optimistic about the report, stating: “As Africa leads the digital revolution, our latest Focus Report shines a light on the essential role of digital infrastructure in shaping the continent’s economic landscape . It highlights the critical contribution of data centers as primary drivers of regional development, highlighting the need for collective efforts to overcome infrastructure barriers and unlock Africa’s digital potential.”
In addition to ADCA, MainOne – a West African submarine communications cable company with a presence in Nigeria, Ghana and Ivory Coast – and Paix – a cloud-neutral data center service provider and carrier across Africa – were also prominent partners were involved in the production of this report.