African Data Center Market to Reach $8.76 Billion by 2031
A report by Arizton Advisory & Intelligence estimates that the African data center market will attract investments worth $8.76 billion by 2031. Notably, Tunisia has emerged as a promising emerging market, alongside Morocco.
A Continent Dominated by Four Hubs
In 2025, investments in African data centers reached $3.64 billion, with an expected annual growth rate of 15.76% until 2031. Colocation, which involves the shared use of digital infrastructure among multiple clients, is growing even faster, with an annual rate of 23.74%. Four countries still dominate the majority of the activity: South Africa, Kenya, Nigeria, and Egypt, driven by solid telecom networks and good international connectivity.
Egypt Stands Out
Egypt stands out with a construction cost of between $8 and $10 per watt, one of the lowest on the continent. However, this environment is starting to evolve, and new North African players, led by Tunisia and Morocco, are gaining ground.
Tunisia: A Digital Hub between Three Continents
Tunisia's advantage lies in its location: at the crossroads between Europe, Africa, and the Middle East, the country benefits from direct proximity to the European continent and connection to several underwater cables crossing the Mediterranean. The global appetite for generative AI, machine learning, big data, and the Internet of Things is driving up demand for computing and storage, a demand that Microsoft and Google are already responding to with massive investments in Africa.
Energy: The Key to Success
The report emphasizes two crucial criteria for the establishment of future data centers: energy availability and connectivity quality. These elements directly influence the choice of international operators among different African markets. This constraint is driving the sector towards renewable energy sources.
Renewable Energy: A Necessary Solution
Solar, wind, and hydroelectric power are becoming essential solutions to secure supply while controlling operating costs. For Tunisia, this energy challenge adds to the already mentioned geographical advantages; however, no concrete projects or investments have been engaged in the country yet. The positioning remains, at this stage, purely prospective, based on regional competitiveness criteria rather than quantified commitments.
