Africa's data centre power capacity has crossed the 500-megawatt threshold, with an additional 890 MW either under construction or in development, according to a new report from the Africa Data Centres Association (ADCA). This milestone underscores the continent's rapid digital transformation and the increasing demand for cloud services, hyperscale computing, and edge infrastructure.
Key Markets Driving Expansion
South Africa remains the dominant market, accounting for over 200 MW of operational capacity, followed by Nigeria with approximately 100 MW, and Kenya with 60 MW. These three countries together represent more than 70% of the continent's total installed capacity. The report highlights that the pipeline projects are concentrated in these same markets, with additional growth emerging in Morocco, Egypt, and Ghana. The expansion is fueled by major cloud providers such as Amazon Web Services, Microsoft Azure, and Google Cloud, which have launched or expanded local availability zones in recent years.
“The growth reflects the continent's accelerating digital transformation and increasing demand for cloud services,” said James Mwangi, lead analyst at ADCA. “Enterprises and governments are moving critical workloads to the cloud, and this requires robust, low-latency data centre infrastructure.” The report notes that the average power capacity per new facility has increased from 10 MW to over 30 MW, indicating a shift toward hyperscale developments.
Investment and Infrastructure Growth
Total investment in African data centres has surpassed $3.5 billion over the past five years, with another $5 billion in committed funding for upcoming projects. Key investors include private equity firms, international data centre operators like Equinix and Digital Realty, and local players such as Africa Data Centres and Rack Centre. The report attributes this surge to favorable regulatory changes in several countries, including streamlined licensing processes and tax incentives for digital infrastructure.
In addition to power capacity, the report tracks network connectivity improvements. Nearly 80% of new data centres are directly connected to international submarine cable landing stations, reducing latency and improving resilience. The average rack power density has doubled since 2020, now reaching 15 kW per rack, supporting high-performance computing and AI workloads.
Challenges and Opportunities
Despite the impressive growth, the report identifies several challenges. Power reliability remains a critical issue, with most facilities relying on diesel generators for backup. The average cost of electricity in African markets is 30-50% higher than in Europe, impacting operational expenses. Additionally, skilled talent shortages are slowing deployment timelines. However, these challenges are also creating opportunities for renewable energy solutions and workforce training programs. Several developers are now incorporating solar and battery storage into their designs, aiming to reduce carbon footprints and energy costs.
The report also notes that data centre capacity is not evenly distributed across the continent. West and East Africa are experiencing rapid growth, while Central Africa remains underserved, with less than 10 MW of operational capacity. This disparity presents both a risk for digital divide and an opportunity for future investment. As more undersea cables land along the African coast, new markets such as Angola, Sudan, and Mozambique are expected to emerge.
Future Outlook
Looking ahead, the ADCA projects that Africa’s data centre capacity could reach 1,500 MW by 2030, driven by 5G rollout, Internet of Things adoption, and increased demand from sectors like fintech, e-commerce, and government services. The report calls for continued policy support and public-private partnerships to accelerate infrastructure development. “Africa is at a tipping point for digital infrastructure,” Mwangi added. “The next decade will see the continent leapfrog legacy systems and become a global player in the data economy.”
