Investments in data centers across Africa are expected to increase by an additional $8.76 billion by 2031, according to a report published on June 24, 2026, by Arizton Advisory & Intelligence.
This growth is being driven by expanding connectivity, the widespread adoption of cloud computing and artificial intelligence (AI), rising demand for local data processing, and increasing investments in renewable energy and submarine cable infrastructure.
Entitled "Africa Data Center Market Landscape 2026–2031," the report forecasts that the African data center market will grow at a compound annual growth rate (CAGR) of 15.76%. The colocation segment is expected to stand out, with an estimated CAGR of 23.74%, as businesses increasingly favor flexible, carrier-neutral infrastructure.
Investment will remain concentrated in the continent's leading digital hubs—South Africa, Kenya, Nigeria, and Egypt—which benefit from advanced digital ecosystems, strong international connectivity, and growing demand for cloud services. Egypt is emerging as one of Africa's most attractive markets, with construction costs estimated at between $8 and $10 per watt.
At the same time, new hubs are emerging across North Africa and Sub-Saharan Africa. Morocco and Tunisia are attracting growing interest thanks to their proximity to Europe and their strategic role in submarine cable networks. Other countries, including Ghana, Mozambique, Gabon, and Ethiopia, are collectively expected to attract around $1.36 billion in investments by 2031.
The rapid expansion of AI, machine learning, big data, and the Internet of Things (IoT) is also accelerating demand for AI-ready infrastructure. Major technology companies, including Microsoft and Google, are investing heavily in these capabilities across Africa.
This trend is also reshaping the technical design of data centers. Facilities are increasingly being built to support GPU-intensive workloads, requiring advanced cooling technologies such as liquid cooling and immersion cooling to manage significantly higher power densities.
Energy has become a critical challenge. As power requirements continue to rise, operators are increasingly turning to renewable energy sources—including solar, wind, and hydropower—to reduce operating costs and ensure reliable electricity supply.
Finally, the expansion of submarine cable networks is strengthening the strategic position of several African countries. Egypt, with 17 operational submarine cables, has established itself as a major hub connecting Africa with Europe, the Middle East, and Asia. Kenya and several other countries are also enhancing their international connectivity. The network outages experienced in West Africa in 2024 highlighted the critical importance of network redundancy, which has now become a key consideration for investors.