Africa Data Center Market to Hit $4.58B by 2031 as Hyperscalers Expand Footprint
Event summary
- Africa's data center construction market is projected to grow to $4.58B by 2031, up from $1.24B in 2025, at a CAGR of 24.26%.
- South Africa leads with $1.2B in investments in 2025, expected to reach $4.6B by 2031, driven by AI adoption and cloud demand.
- Nigeria is the fastest-growing market, with investments rising from $132M in 2025 to $770M by 2031.
- Hyperscale investments in Africa are forecast to reach $390M by 2031, with Google and Microsoft expanding cloud regions in South Africa.
The big picture
Africa is rapidly becoming a key destination for hyperscale data center investments as global cloud providers expand their digital infrastructure. The continent's growing AI adoption, enterprise cloud demand, and submarine cable connectivity are driving significant investments, particularly in South Africa, which is positioning itself as a leading cloud and data center hub. The market's rapid growth underscores the strategic importance of Africa in the global digital transformation landscape.
What we're watching
- Regional Expansion
- How emerging markets like Morocco, Djibouti, Ethiopia, Ghana, and Tanzania will attract over $1.3B in investments by 2031.
- Hyperscale Growth
- Whether global cloud providers can sustain the pace of hyperscale data center investments across Africa.
- Infrastructure Development
- The impact of improving connectivity and digital infrastructure on enterprise demand for colocation services.
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