Data centres and Africa’s emerging digital economy

Oxford Business Group, a global research and consultancy firm, has published a focus report on the African data centre market, noting that it is primed for substantial growth

According to the report, published in collaboration with Africa Data Centres, rising Internet penetration and a blossoming digital economy are lighting a fire under the market, leading to a projected 50% capacity increase by 2026.

“Africa’s data centre industry is expanding rapidly due to the increasing demand for such facilities throughout the continent, particularly in fast-growing markets such as Kenya, Morocco and South Africa. The continent will need more than 700 data centres, in the long run, to fully benefit from the growing segment and ensure its digital sovereignty,” stated Ayotunde Coker, chairman of Africa Data Centres Association, in the report foreword.

Despite the significant growth potential on the horizon, there are a number of prevailing challenges which could act as a decelerator to market expansion, most notably around land access (facilities ideally require expansive real estate of several thousand sq m, located near business districts) and power reliability (data centres are incredibly energy-intensive structures, a daunting hurdle amid Africa’s current power challenges).

The report from Oxford Business Group and Africa Data Centres Association outlines and explores such aspects of the market and more. Click here to view the document.

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