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Conquests

Datacenters: Africa Aims to Shift the Paradigm

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03/07/2025 à 13:49 , Mis à jour le 03/07/2025
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93.6% of data center industry players in Africa anticipate strong or moderate growth in the sector over the next twelve months, with an expected average growth rate of 17.5%.

According to a report published by the Africa Data Centres Association (ADCA) in collaboration with Rising Advisory, persistent structural and operational challenges are still preventing the sector from fully taking off.

Entitled “Data Centers in Africa: Where Do Decision Makers See the Sector Heading?”, the report is based on a survey conducted between April and June 2025 with 31 executives from companies operating in Africa’s data center industry—including data center operators, specialized equipment manufacturers, and firms involved in the design and construction of data centers.

22.6% of surveyed executives anticipate significant expansion in the data center industry, while the majority (71%) expect moderate growth, indicating a steady rather than accelerated trajectory.

Notably, none of the respondents foresee a decline, underscoring ongoing confidence in the sector’s fundamentals. These figures reflect cautious optimism, shaped by ongoing challenges related to infrastructure, public policy, and investment.

Measured Optimism

When asked about the likelihood of their companies making a significant capital investment in the next twelve months, a large majority (77.4%) of executives said such an investment was “very likely” or “likely.”

This strong level of investment intent reflects sustained confidence in market prospects.

Conversely, 3.2% of respondents consider such investment “unlikely” or “very unlikely,” while a notable 19.4% adopt a “neutral” stance—indicating some caution, possibly linked to project timelines, regulatory environments, or funding access.

The survey also reveals a generally positive outlook on the current business climate for the data center industry on the continent.

Indeed, 80.6% of sector respondents rated the business climate as “very favorable” (29%) or “somewhat favorable” (51.6%). 16.1% remain neutral, while 3.2% view the climate as “somewhat unfavorable,” reflecting a growing sector, albeit progressing at a slower pace than initially expected.

Growth Drivers and Challenges

The main growth drivers identified by industry leaders are the sustained increase in data consumption, rising internet penetration, and growing demand for cloud services. Supply-side and regulatory factors—such as public policies, edge computing, or AI—are currently considered of lesser importance.

On the other hand, the top challenges to expanding data center infrastructure in Africa are, in order:

Shortage of skilled professionals,

Unreliable electricity supply,

Regulatory uncertainty, according to reporting from Ecofin Agency.