Africa data center market to reach $3 billion by 2025, report
10-08-2020 10:40:00 | by: Bob Koigi | hits: 26640 | Tags:

The Africa data center market by revenue is expected to grow at a compounded annual growth rate  of over 12 per cent during the period 2019-2025 according to the latest report by Research and Markets. 

Africa data center market size is expected to cross $3 billion by 2025, growing at a CAGR of over 12% during the forecast period. The Africa data center industry has witnessed a steady interest from major global cloud service providers such as AWS and Microsoft, along with Huawei over the last five years.

The increasing demand for cloud-based services and modular data center solutions among enterprises, especially in SMEs and government agencies, are expected to drive the market in Africa. It is expected that over 70% of organizations operating in the region will shift to the cloud region by 2025. South Africa, Kenya, Morocco, Egypt, and Nigeria are at the forefront of improving the digital economy. These countries, along with cloud-based service adoption, have also witnessed high usage of big data analytics.

Several African countries are yet to be cloud-ready, and the improvement in inland and submarine connectivity will see multiple enterprises migrating their workloads to the cloud during the forecast period. A majority of the investment in Africa is led by colocation and telecommunication service providers, followed by enterprises and government agencies due to the installation of modular data centers.

The rapid spread of COVID-19 has significantly increased data traffic since March 2020. To provide high availability services to end-users, operators are taking precautionary measures for their on-site employees. Colocation data center operators have taken steps to manage the available workforce to monitor their existing faculties without any service disruption. Construction projects in African countries have not been completed halted after the outbreak of the COVID-19. A reduced workforce followed restrictions imposed by the government on site. The impact of the pandemic in African countries is low-to-moderate.

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