By Benson Daniel
Africa’s demand for data centre capacity could increase by between 3.5 and 5.5 times by 2030, creating an investment opportunity that may require between $10 billion and $20 billion in new capital.
The projected expansion is being driven by rapid digitalisation, increasing cloud adoption, artificial intelligence workloads, streaming services and the growing use of digital financial platforms across the continent.
Current data centre capacity in Africa stands at about 0.4 gigawatts, but this could rise to between 1.5GW and 2.2GW by 2030 as businesses and governments increasingly depend on digital infrastructure.
The projected growth places data centres at the centre of Africa’s digital economy ambitions, particularly as countries seek to attract technology companies, expand cloud services and develop local capacity for processing and storing data.
The investment requirement, however, extends beyond the construction of data centre facilities. Reliable electricity supply, transmission infrastructure, fibre connectivity, cooling systems and other supporting infrastructure will require significant additional investment.
Power availability remains one of the biggest challenges to the continent’s data centre expansion. Unlike many mature markets, several African countries continue to experience unreliable electricity supplies, making it necessary for operators to invest heavily in alternative power sources and backup systems.
The expansion of artificial intelligence is expected to further increase pressure on digital infrastructure because AI applications require significant computing capacity and electricity.
Industry projections indicate that Africa’s data centre development could generate a revenue pool of between $20 billion and $30 billion across the wider value chain by 2030, creating opportunities for investors, technology companies, power providers, construction firms and telecommunications operators.
Nigeria is expected to remain one of the key markets supporting the continent’s growth, alongside South Africa, Kenya, Egypt and Morocco. Nigeria’s large population, expanding digital economy, subsea cable connectivity and growing demand for cloud and financial technology services provide a strong foundation for further data centre investment.
The growth of data centres could also create wider economic benefits by supporting digital businesses, improving access to cloud computing and reducing dependence on overseas infrastructure for data processing and storage.
For governments, the sector presents an opportunity to attract foreign investment and strengthen digital sovereignty. However, investors are likely to assess electricity reliability, regulatory certainty, land availability, fibre connectivity and the ease of doing business before committing large amounts of capital.
Financing is another major consideration. With the projected requirement running into billions of dollars, industry stakeholders are expected to explore a combination of private equity, project finance, development finance and other long term funding structures.
Experts have also warned that Africa could struggle to fully benefit from the artificial intelligence boom if infrastructure development fails to keep pace with demand. Improvements in electricity supply, internet connectivity and digital skills will therefore be critical to ensuring that data centre growth translates into broader economic gains.
As demand continues to rise, countries that can provide reliable power, efficient connectivity and investor friendly policies are expected to attract a larger share of the continent’s data centre investments.
Africa’s projected fivefold expansion therefore represents both a major infrastructure challenge and an opportunity to build the digital foundation required for the next phase of economic growth.
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