Africa Data Center Market Landscape 2023-2028: Public-Private Partnerships in Digital Infrastructure Leading to Increased Demand

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Jul 26, 2023, 13:15 ET

DUBLIN, July 26, 2023 /PRNewswire/ -- The "Africa Data Center Market Landscape 2023-2028" report has been added to ResearchAndMarkets.com's offering.

The Africa data center market is experiencing remarkable growth and is poised to achieve a value of $4.92 billion by 2028, compared to $2.74 billion in 2022, representing a robust CAGR of 10.25%.

The market's focus on IT infrastructure is evident, with a significant rise in demand for switches with up to 40GbE ports, and the anticipated growth in cloud data centers is expected to further drive demand for switches with ports of over 40GbE. With the rising need for advanced infrastructure, the adoption of flash storage devices and blade servers is predicted to surge in the coming years.

South Africa emerges as a dominant force in the region's data center investments, closely followed by promising markets like Nigeria and Kenya. Notably, Egypt is rapidly emerging as a hotspot for regional investments, attracting significant attention from major African investors keen on developing data centers. Furthermore, other markets, including Ethiopia and Ghana, are also poised for growth, responding to the escalating demand for data centers in the region.

This thriving industry includes key IT infrastructure providers such as Arista Networks, Atos, Broadcom, Cisco System, NetApp, IBM, and others, who are instrumental in driving the availability of advanced IT infrastructure in the market. Additionally, sustainability is becoming a pivotal factor, with increasing demand for generators fueled by sustainable sources like hydrotreated vegetable oil and a rise in the adoption of UPS systems with lithium-ion batteries and other eco-friendly alternatives.

As the industry gains momentum, greenfield buildings are sprouting across multiple countries, taking advantage of the ample availability of land. This progress has also attracted new global contractors, eager to make their mark in the region following the entry of prominent global operators.

The Africa data center market promises an exciting trajectory with a focus on cutting-edge technology and sustainable practices, attracting significant investments and driving digital transformation across the continent.

KEY TRENDS

Governmental Support for Special Economic Zones (SEZs): Local governments in various African countries are actively focusing on developing special economic zones, including free trade zones, industrial parks, high-tech parks, and business service parks. These SEZs are designed to stimulate economic growth, attract foreign investments, and create employment opportunities. As a result, the development of these zones is likely to drive the demand for data centers as businesses seek to establish their operations in these strategic locations.

Public-Private Partnerships in Digital Infrastructure: Governments in South Africa and Kenya have forged partnerships with private entities to develop digital infrastructure, leading to increased demand for data centers in the region. Such collaborations are instrumental in fostering technological advancements and the adoption of innovative technologies that drive the growth of data center investments.

Governmental Support for Digitalization and Tax Incentives: African governments are actively supporting digitalization efforts and providing tax incentives to encourage investments in data center facilities. These initiatives are expected to accelerate the development of data centers in the region and attract more stakeholders to participate in the industry.

Smart City Initiatives and Urbanization: Local governments in Africa are funding smart city initiatives to promote the adoption of cutting-edge technologies such as IoT, Big Data, and Artificial Intelligence. Rapid urbanization, especially among the low-income population, is driving the need for technology-driven solutions to address the challenges posed by urban growth. This development is expected to generate significant data generation, leading to higher demand for data storage and computation capabilities, thereby increasing the demand for edge data centers for high-performance computing (HPC).

Commercial Attractiveness and Increased Market Participants: The development of smart cities and the growing adoption of advanced technologies are making the region commercially attractive to various organizations. As the demand for data centers rises, more businesses and stakeholders are expected to enter the data center industry in Africa, fostering further growth and competition in the market.

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
Royal HaskoningDHV
Shaker Group
Sterling & Wilson
Summit Technology Solutions
Tri-Star Construction
United Egypt
Westwood Management

Data Center Investors

21st Century Technology
Africa Data Centres
Digital Parks Africa
Galaxy Backbone
icolo.io (Digital Realty)
IXAfrica
MainOne
Medallion Communications
NTT Global Data Centers
Paratus Namibia
Rack Centre
Raxio Data Centres
Telecom Egypt
Wingu

New Entrants

Open Access Data Centres (OADC)
Nxtra by Airtel
Cloudoon
Kasi Cloud
Google
Vantage Data Center

SEGMENTATION INSIGHTS

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/BMS Solutions

Segmentation by Tier Standard

Tier I & II
Tier III
Tier IV

GEOGRAPHICAL ANALYSIS

Africa
South Africa
Kenya
Nigeria
Egypt
Ethiopia
Other African Countries

For more information about this report visit https://www.researchandmarkets.com/r/l71dr0

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