Dublin, April 24, 2024 (GLOBE NEWSWIRE) -- The "Africa Data Center Market Landscape 2024-2029" report has been added to ResearchAndMarkets.com's offering.
Africa Data Center Market to reach $6.46 billion by 2029 from $3.33 billion in 2023, growing at a CAGR of 11.7%
The Africa data center market has the presence of IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco Systems, Dell Technologies, IBM, NetApp, Oracle, and others that are driving the availability of advanced IT infrastructure in the market. The Africa data center industry has several regional and global contractors and subcontractors, such as Atkins, Orascom Construction, Arup, Abbeydale Projects, REDCON Construction, Raya Information Technology, and others.
The Africa data center market primarily sees switches with up to 40GbE ports, particularly in IT infrastructure. As cloud data centers expand, demand for switches with ports exceeding 40GbE is anticipated to increase. Additionally, with the growing need for sophisticated infrastructure, the uptake of flash storage devices and blade servers is expected to rise in the upcoming years.
In the coming years, sustainability mandates are anticipated to drive the adoption of generators in the Africa data center market that utilize sustainable fuels like hydrotreated vegetable oils, among others. This trend is expected to be followed by increased demand for UPS systems equipped with lithium-ion batteries and other types.
The industry is poised to see the ongoing development of greenfield buildings in various countries where abundant land is available for industrial development. The entry of new global data center operators and the increasing expansion of existing operators in the region are also expected to attract several new global contractors.
KEY TRENDS
Government Support for Data Center Development Will Drive The Market Growth
- African governments are working on improving digital infrastructure by supporting digitalization and offering tax incentives. Creating Free Trade Zones (FTZs) and Special Economic Zones (SEZs) will encourage innovative technologies, boost investments in data centers, and promote the overall progress of technologies in the region.
- In February 2023, the government of South Africa introduced the data-driven economy program to help businesses use data more effectively. The government offers financial support to encourage businesses to embrace data-driven approaches and grow more effectively.
- In addition, policies and regulations on the local storage of sensitive data will boost the digital economy in several African countries. Most data is currently stored in offshore data centers. For example, the Nigerian government has mandated the local storage of data about sectors such as oil and gas, financial services, and the public sector.
Growing Smart City Developments Will Drive the Demand for Advanced Technologies in the Market
- As of 2023, most countries, including South Africa, Kenya, Nigeria, Egypt, Ethiopia, Morocco, Ghana, and Algeria, account for an average internet penetration above 64%. Africa's central location market is a crucial area for undersea cable landing stations, enhancing global connectivity and creating large-scale smart cities. As a smart city grows, more data will be generated, augmenting the need for storage and computing power. This demand will drive the establishment of edge data centers for High-Performance Computing (HPC), making the region more commercially appealing and attractive for investors.
- As smart cities progress, advanced technologies, including 5G, IoT, and AI, will enhance internet speed and data flow. This surge in connectivity is expected to boost the Africa data center market. With the smart city initiatives gaining momentum, more investors are estimated to enter the data center market and invest in data center infrastructure.
GEOGRAPHICAL ANALYSIS
- The Africa data center market is poised for significant growth, driven by technology advancements, increased digitalization, and strategic government initiatives. South Africa is emerging as a major global consumer market due to its growing population, increasing disposable incomes, and expanded access to technology.
- The data center industry in Kenya is undergoing significant growth, driven by enhanced internet access, robust information and communication technology (ICT) infrastructure, and expanded services.
- Nigeria is emerging as one of Africa's fastest-growing markets after South Africa, with increasing demand for data centers expected in the upcoming years. Government initiatives and the country's strategic location are fueling this growth.
- Egypt's data center industry is emerging as a key player in the Africa data center market, driven by its proximity to Europe, advancing digitalization, development of industrial land, and enhanced fiber connectivity, among other factors.
- Ethiopia's data center industry is driven by the increasing use of digital platforms, adoption of advanced technologies such as IoT and big data, growth in an AI-driven digital economy, enhanced 5G network connectivity, and rise in internet users, particularly social media and mobile devices. These rapidly boost data traffic, escalating demand for data centers in the upcoming years.
- Other country markets, including Morocco, Ghana, Algeria, Cameroon, Angola, Uganda, Namibia, Zambia, Senegal, Rwanda, Mozambique, and Botswana, are also promising. Morocco currently leads with the most substantial data center facilities. Still, demand is expected to surge across these nations, driving significant regional data center capacity growth in the upcoming years.
KEY QUESTIONS ANSWERED
- How big is the Africa data center market?
- What is the growth rate of the Africa data center market?
- What is the estimated market size in terms of area in the Africa data center market by 2029?
- What are the key trends in the Africa data center industry?
- How many MW of power capacity is expected to reach the Africa data center market by 2029?
Key Attributes:
| Report Attribute | Details |
| No. of Pages | 99 |
| Forecast Period | 2023 - 2029 |
| Estimated Market Value (USD) in 2023 | $3.33 Billion |
| Forecasted Market Value (USD) by 2029 | $6.46 Billion |
| Compound Annual Growth Rate | 11.6% |
| Regions Covered | Africa |
VENDOR LANDSCAPE
IT Infrastructure Providers
- Arista Networks
- Atos
- Broadcom
- Cisco Systems
- Dell Technologies
- Fujitsu
- Hewlett Packard Enterprise (HPE)
- Hitachi Vantara
- Huawei Technologies
- IBM
- Inspur
- Juniper Networks
- Lenovo
- NetApp
- Oracle
Prominent Support Infrastructure Providers
- 4energy
- ABB
- Caterpillar
- Cummins
- Delta Electronics
- EATON
- EVAPCO
- Enlogic
- Legrand
- Master Power Technologies
- Rittal
- Rolls-Royce
- Schneider Electric
- Siemens
- STULZ
- Vertiv
Prominent Data Center Construction Contractors
- Abbeydale
- Advanced Vision Morocco
- ARSMAGNA
- Arup
- Atkins
- b2 Architects
- CAP DC
- Chess Enterprises
- Copy Cat Group
- Eastra Solutions
- Edarat Group
- EDS Engineers
- Egypro
- H&MV Engineering
- Ingenium
- Interkel
- JLB Architects
- MWK Engineering
- Orascom Construction
- Raya Network Services
- REDCON Construction
- Royal HaskoningDHV
- Shaker Group
- Sterling & Wilson
- Summit Technology Solutions
- Tri-Star Construction
- United Egypt
- Westwood Management
Data Center Investors
- 21st Century Technologies
- Africa Data Centres
- Airtel Africa
- Digital Parks Africa
- Digital Realty
- Equinix
- Galaxy Backbone
- IXAFRICA Data Centre
- Medallion
- NTT Data
- Open Access Data Centres (OADC)
- Paratus
- Rack Centre
- Raya Data Center
- Raxio Data Centres
- Telecom Egypt
- wingu.africa
- Vantage Data Centers
New Entrants
- Cloudoon
- Gulf Data Hub
- Kasi Cloud
- Khazna Data Centers
Segmentation by Infrastructure
- IT Infrastructure
- Electrical Infrastructure
- Mechanical Infrastructure
- General Construction
Segmentation by IT Infrastructure
- Server Infrastructure
- Storage Infrastructure
- Network Infrastructure
Segmentation by Electrical Infrastructure
- UPS Systems
- Generators
- Transfer Switches & Switchgear
- Power Distribution Units
- Other Electrical Infrastructure
Segmentation by Mechanical Infrastructure
- Cooling Systems
- Racks
- Other Mechanical Infrastructure
Segmentation by Cooling Systems
- CRAC & CRAH Units
- Chiller Units
- Cooling Towers, Condensers, and Dry Coolers
- Other Cooling Units
Segmentation by Cooling Techniques
- Air-based Cooling Technique
- Liquid-based Cooling Technique
Segmentation by General Construction
- Core & Shell Development
- Installation & Commissioning Services
- Engineering & Building Design
- Physical Security
- Fire Detection & Suppression
- DCIM
Segmentation by Tier Standard
- Tier I & II
- Tier III
- Tier IV
Segmentation by Geography
- Africa
- South Africa
- Kenya
- Nigeria
- Egypt
- Ethiopia
- Other African Countries
For more information about this report visit https://www.researchandmarkets.com/r/s9xdv1
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