Africa’s Data Centre Boom: Powering the Continent’s Digital Future
Over the past three years, Africa’s data centre capacity has doubled—a remarkable surge driven by skyrocketing demand for cloud services, digital transformation across industries, and a rapidly expanding online population. Yet despite being home to 17% of the world’s people, the continent still accounts for **less than 1%** of global data centre capacity, according to Xalam Analytics. This gap is now attracting major international investment—and reshaping Africa’s digital infrastructure landscape.
Global Capital Flows into Africa’s Cloud Economy
International investors are betting big on Africa’s digital potential. London-based private equity firm Actis recently committed $250 million to African data centres over the next three years, starting with a controlling stake in Rack Centre, Nigeria’s leading facility serving West Africa.
The investment will double Rack Centre’s current 750kW capacity and fuel regional expansion—positioning it as one of the continent’s largest neutral data hubs.
“Africa is no different: you see digitisation, the inexorable migration to cloud, and really the advent of big data—but the supply of data hasn’t kept up.”
— Kabir Chal, Director at Actis
Why Local Data Centres Matter
Historically, African governments and enterprises relied on in-house server rooms. But rising cyber threats, escalating maintenance costs, and the complexity of modern IT have made this model unsustainable—especially for banks, oil & gas firms, and public institutions.
As Uzoma Dozie, former CEO of Diamond Bank, explains:
“Cyber security is not an expert capability of banks, and continuous upgrading [of data centres] is expensive. So there’s a big opportunity… as more people begin to use cloud services instead of having their own data servers.”
Moreover, hosting data locally delivers critical advantages:
- Faster connection speeds (no transcontinental latency)
- Compliance with data sovereignty laws (many African nations now require local data residency)
- Lower operational risk through professional, secure, and scalable infrastructure
Overcoming Infrastructure Challenges
Despite the momentum, building data centres in Africa remains challenging:
- Unreliable power grids force operators to deploy costly diesel generators
- Limited fibre connectivity and high data costs hinder performance
- High capital costs due to perceived country risk
“We have to fundamentally build our own power-generating capability… so that is a capital cost in itself,” says Tunde Coker, Managing Director of Rack Centre, which interconnects with over 35 telecom operators—including MTN, Orange, and Airtel.
Cloud Giants Enter the Arena
Major hyperscalers are accelerating Africa’s cloud evolution:
- Microsoft launched its first African cloud regions in South Africa—now home to ~50% of the continent’s data centre capacity.
- Amazon Web Services (AWS) plans to open its first African data centres in Cape Town later this year.
- Berkshire Partners acquired a stake in Teraco, Africa’s largest data centre operator, aiming to double its capacity from 30MW to 60MW.
These global players rely on neutral, independent facilities like Rack Centre and Africa Data Centres (Liquid Telecom’s subsidiary)—not telco-owned centres—to ensure multi-carrier connectivity and operational neutrality.
“You will never see a big deployment of cloud in a telco data centre. Cloud providers need a diversity of connectivity.”
— Stephane Duproz, CEO of Africa Data Centres
The Road Ahead
As more data stays—and is processed—on African soil, consumers and businesses alike will benefit from:
- Smarter, faster mobile apps
- Seamless streaming and gaming experiences
- Secure, compliant platforms for fintech, e-health, and smart cities
While Chinese firms have been active as connectivity partners (e.g., China Telecom), large-scale Chinese data centre investments remain limited—for now. But as Duproz notes, “it’s definitely a conversation they are having.”
With global capital, local innovation, and growing digital demand converging, Africa’s data centre gold rush is just beginning.
Source: “Africa’s Cloud Computing Boom Creates Data Centre Gold Rush” by Neil Munshi, Financial Times
