Kenya's data center market to generate over $100 million in revenue by end of 2027, report
15-02-2023 08:31:39 | by: Bob Koigi | hits: 2172 | Tags:

Kenya's data center market is at a growing stage, being driven by the growing demand from SMEs and rising internet penetration rate. Major Data Center companies in the Kenyan market are, IX Africa, Africa Data Centers, PAIX (Pan African IX Data Centers Kenya Ltd.) among others.

Kenyans' preference for mobile commerce is expected to lead to an increase in the demand for data centers in the nation. Additionally, new entrants are significantly accelerating market expansion in the upcoming years by meeting the demands of regional businesses and cloud service providers. For instance, Nairobi, Kenya-based Africa Data Centers has announced plans for two additional data centers.

In Kenya, the area of development that will further offer chances for vendors with innovative delivery solutions to grab the market is the country's underdeveloped transportation and distribution infrastructure. An option in this situation would be to use a pay-online, pick-up-in-store arrangement. Additionally, due to a desire to make payments online or through a mobile money account, e-commerce in Kenya has huge potential. Due to these strategies, Kenya's data center industry could experience double-digit CAGR growth in the near future.

Kenyan data centers can reach the bulk of their possible end customers because of their solid distribution network. The ability of businesses like Africa Data Centers to offer their customers the highest caliber of interconnected, carrier-neutral, and cloud-neutral data center facilities across Africa will be strengthened by a strategic network of alliances. Additionally, continued government assistance will aid in the country's market expansion.

Analysts at Ken Research in their latest publication "Kenya Data Center Market Outlook to 2027F - Growing Demand from SMEs, Rising Internet Penetration Rate and Rising Number of Facilities to Drive the Kenyan Data Center market in the near future" observed that Kenya Data Center Market is in a growing phase. Improvement in network connectivity, government support, and rapid growth in the adoption of big data, and IoT services are some of the factors that will contribute to the Kenya Data Center market growth over the period of 2022-2027F. It is expected that the Kenya Data Center Market will grow at a CAGR of 21.6% for the above-forecasted period.