Africa is an Emerging Nation for Data Center Development - Arizton

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Arizton Advisory & Intelligence

Oct 04, 2021, 12:00 ET

CHICAGO, Oct. 4, 2021 /PRNewswire/ -- In the Middle East & Africa, growing internet penetration, social media usage, and smart initiatives will continue to drive the market over the next few years. Africa is an emerging data center market, and it witnessed around 15 data center investments in 2020. The growth in the adoption of IoT and big data analytics services will result in the rapid acceleration of data center development in the Africa data center market. The market is evolving, and investments are expected to rise significantly with contributions from local and global data center operators. The Middle Eastern region witnessed investments from telecommunication service providers as well as global colocation operators. A major advantage in the Middle Eastern & Africa market is the low power cost.

Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these current trends in the industry. Arizton has a dedicated vertical that focuses on data centre knowledge base across geographies. These market research reports cover a detailed analysis of the COVID-19-induced supply chain disruptions, innovations in technology, equipment financing, economic impact, and a detailed study of the competitive landscape. 

Kenya Data Center Market - Investment Analysis & Growth Opportunities 2021-2026

The Kenya data center market is expected to reach USD 342 million in 2026, growing at a CAGR of 12.36% during the period 2021-2026. Kenya is one of the major data center hubs in Africa and is considered the gateway to the East African region. Nairobi, the capital city, is a favorable location for data center development. The data center market in Kenya includes around 6 unique third-party data center service providers, operating around 9 facilities. Over the past 3 to 4 years, the market has grown significantly, with an increase in the development of data centers.

Key Highlights

  • Over USD 480 million will be invested in data center development across Kenya between 2021 and 2026. During the forecast period, the country will witness investments in around 6 data center facilities.
  • The Kenyan government has set up Special Economic Zones (SEZs) to improve economic growth, offering tax-and duty-free exemption, and work permit facilitation to attract small and large investments in the country.
  • Commercial 5G network has been rolled out in Kenya by Safaricom along with Nokia in 2021, which will boost digital initiatives such as IoT and big data and heighten the demand for data centers.
  • In Kenya, on-premises data centers are aiding digitalization. The forecast period will witness enterprises shifting to cloud and colocation data centers. Managed hosting services will be adopted by large enterprises.
  • Nairobi is called the London for Kenya as it is the real tech hub and is leading the competition for attracting data center investments because it is one of the global United Nations HQs.

Read more now: https://www.arizton.com/market-reports/kenya-data-center-market-investment-analysis

Nigeria Data Center Market - Investment Analysis & Growth Opportunities 2021-2026

The Nigeria data center market is expected to reach USD 218 million in 2026, growing at a CAGR of 17% during the period 2020-2026.  Investments in the Nigerian data center market are majorly driven by factors such as digitalization of advanced technology, the presence of major operators, internet penetration, and government initiatives. Nigeria hosts 11 existing and will witness the deployment of 9 upcoming facilities spread across 2 cities, including Lagos and Abuja.

Key Highlights

  • The outbreak of the COVID-19 pandemic has been a major rapid growth enabler for the cloud market growth in Nigeria, with several enterprises migrating their workload to the cloud platform.
  • The shift of industry sectors such as BFSI, education, retail, manufacturing, and others toward modern technologies such as cloud and big data is likely to aid the growth of the market during the forecast period.
  • In December 2020, the Federal Government of Nigeria launched its "Solar Power Naija" project, focusing on 5 million solar connections by way of solar home installations as well as mini grids.
  • With improved digital infrastructure and connectivity, an expected increase in colocation activities from cloud service providers is likely to boost the development of local data centers, significantly boosting the colocation market in Nigeria.
  • By 2025, the government plans to increase the supply share of renewable electricity to 10% of the overall electricity generated in Nigeria.

Read more now: https://www.arizton.com/market-reports/nigeria-data-center-market-investment-analysis

South Africa Data Center Market - Investment Analysis & Growth Opportunities 2021-2026

The South Africa data center market is expected to reach USD 3071 million in 2026, growing at a CAGR of 15.17% during the period 2021-2026. South Africa is the largest data center market in Africa. The market includes about 7 unique third-party data center service providers, operating over 22 facilities. The entry of new hyperscale data center operators expect to increase in the country during the forecast period. The COVID-19 pandemic has been a strong market driver for digital transformation initiatives in private and public sector enterprises in South Africa.

Key Highlights

  • The market will witness the entry of global data center colocation service providers through independent data center developments and partnerships or via acquisitions by major colocation providers in the country.
  • The expansion of 5G services is likely to propel the growth of data centers in the country.
  • M&A activities expect to continue in South Africa during the forecast period. In 2020, Africa Data Centers acquired Standard Bank's Samrand data center in Johannesburg.
  • Vendors such as IBM, Cisco, and Dell Technologies have a strong presence in the market. ODM servers will witness growth as investments in hyperscale data center facilities from cloud service providers, which is expected to increase during the forecast period.
  • Intelligent PDUs are likely to gain traction with the construction of new data centers. The demand for metered, monitored or switched intelligent PDUs is likely to dominate the market during the forecast period.

Read more now: https://www.arizton.com/market-reports/south-africa-data-center-market-investment-analysis

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About Arizton:  

Arizton Advisory and Intelligence is an innovation and quality-driven firm, which offers innovative research solutions to clients across the world. We excel in providing comprehensive market intelligence reports and advisory and consulting services.

We offer comprehensive market research reports on industries such as consumer goods & retail technology, automotive and mobility, smart tech, healthcare, and life sciences, industrial machinery, chemicals, and materials, IT and media, logistics, and packaging. These reports contain detailed industry analysis, market size, share, growth drivers, and trend forecasts.

Arizton comprises a team of exuberant and well-experienced analysts who have mastered generating incisive reports. Our specialist analysts possess exemplary skills in market research. We train our team in advanced research practices, techniques, and ethics to outperform in fabricating impregnable research reports.

Mail: [email protected] 
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SOURCE Arizton Advisory & Intelligence

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