African Data Centre targets 50% growth in 2026

Africa’s Data Centre is poised for substantial growth, with a projected 50 percent capacity increase by 2026 despite the infrastructure gap and regulatory challenges.

Fuelled by a burgeoning digital economy and rising internet penetration, the continent presents lucrative opportunities despite infrastructure and regulatory challenges, according to the report.

Oxford Business Group, in collaboration with the Africa Data Centres Association (ADCA), in its Focus Report titled “Data Centres in Africa”, offered insights into the pivotal role of data centres in driving the continent’s digital evolution.

The report highlights Africa’s evolving data centre ecosystem, analysing infrastructure development, broadband expansion, and regulatory frameworks, underscoring the importance of bridging the ICT skills gap and integrating sustainability into data centre operations.

With a focus on environmental responsibility and innovation, Africa’s data centre sector spearheads digital transformation and sustainable economic development continent-wide.

“Key findings from the report reveal significant capacity growth, with Africa’s data centre capacity expected to increase by 50 percent between 2021 and 2026. However, the distribution of data centres across the continent remains uneven, with some areas lacking adequate facilities, presenting opportunities for further development.”

Ayotunde Coker, chairman of ADCA, emphasises the urgent need for collaborative efforts, including special economic zones and renewable energy incentives, to unlock Africa’s digital potential and accelerate its development.

“As Africa leads this transformative wave, data centres emerge as the linchpin driving regional growth, powered by high-speed fibre-optic links and strategic investments. Key markets such as Nigeria, Kenya, Egypt, and Morocco capitalise on their competitive advantages to attract investment and accelerate digital infrastructure development,” he highlighted.

Karine Loehman, OBG’s managing director for Africa, expresses optimism regarding the report, stating, “As Africa leads the digital revolution, our latest Focus Report sheds light on the essential role of digital infrastructure in shaping the continent’s economic landscape. It underscores the critical contribution of data centres as primary drivers of regional growth, emphasising the necessity for collaborative efforts to overcome infrastructure hurdles and unleash Africa’s digital potential.