Investments in African Data Centers to Reach $8.76 Billion by 2031
The African data center market is expected to experience significant growth, with investments reaching $8.76 billion by 2031, driven by the increasing demand for cloud services, artificial intelligence (AI), and local data storage. According to a report published by Arizton Advisory & Intelligence on June 24, Tunisia and Morocco are emerging as attractive destinations for international investors, alongside established markets such as South Africa, Kenya, Nigeria, and Egypt.
Current Market Landscape
These countries have historically dominated the continent's data center market due to their more developed telecom networks, better international connectivity, and strong demand for cloud and colocation services. Egypt, in particular, stands out with a construction cost estimated between $8 and $10 per watt, making it one of the most competitive markets in Africa for new projects.
Emerging Markets
However, the report highlights that Tunisia and Morocco are gaining attractiveness due to their proximity to Europe and connection to multiple submarine cables, positioning them as future interconnection hubs between Europe, Africa, and the Middle East. This development is gradually expanding the investment map beyond traditional markets.
Market Growth
According to Arizton, the African data center market is expected to experience an average annual growth rate of 15.76% until 2031. The colocation data center segment is expected to grow even faster, with a compound annual growth rate of 23.74%, as enterprises prioritize flexible infrastructure over proprietary installations.
Drivers of Growth
This growth is driven by the rapid adoption of AI, machine learning, big data, and the Internet of Things (IoT), which require increasingly powerful computing capabilities. Major technology players are investing in this digital transformation in Africa, while operators are developing data centers tailored to AI-related workloads.
Key Factors for Future Investments
The report also highlights two critical factors for future investments: access to reliable energy and high-quality international connectivity. As data center energy consumption increases, operators are increasingly relying on renewable energy sources to secure their supply and reduce costs. Meanwhile, the development of submarine cables is improving the resilience of African networks and enhancing the attractiveness of well-connected countries, particularly in North Africa.
