There is potential for substantial growth in the data center sector in Africa. Africa’s data center market is poised for significant expansion, with projections indicating a 50% increase in capacity by 2026.
Data Center Sector Potential for Substantial Growth in Africa
Despite facing technical and regulatory challenges, the continent presents substantial opportunities within a thriving digital economy and growing internet adoption rates.
A collaborative report by the Oxford Business Group (OBG) and the Africa Data Centres Association (ADCA) delves into the burgeoning data centre ecosystem across Africa.
This comprehensive analysis covers infrastructure development, broadband expansion, and regulatory frameworks, highlighting the critical importance of addressing the ICT skills gap and integrating sustainability into data centre operations.
Imperative for Collective Action
Ayotunde Coker, Chairman of ADCA, underscores the imperative for collective action, advocating for measures such as establishing special economic zones and providing subsidies for renewable energy. These initiatives are essential to unlocking Africa’s digital potential and driving regional growth.
“As Africa spearheads this transformative wave, data centres emerge as the linchpin driving regional growth,” remarked Coker, emphasizing the pivotal role of high-speed fibre-optic connections and strategic investments.
The report identifies key markets like Nigeria, Kenya, Egypt, and Morocco as frontrunners in leveraging their competitive advantages to attract investment and accelerate digital infrastructure development.
Critical Role of Digital Infrastructure
Karine Loehman, OBG’s managing director for Africa, expressed optimism about the report’s findings, highlighting the critical role of digital infrastructure in shaping the continent’s economic landscape amid the digital revolution.
Co-produced by MainOne, a West African underwater communications cable business, and Paix, a provider of cloud- and carrier-neutral data centre services across Africa, the report underscores the collaborative efforts driving Africa’s digital transformation.
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