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    You are at:Home»Africa Intelligence»Despite $6.8 billion market growth, African data centers face power and connectivity bottlenecks
    Africa Intelligence

    Despite $6.8 billion market growth, African data centers face power and connectivity bottlenecks

    Xsum NewsBy Xsum NewsJanuary 16, 2026No Comments4 Mins Read0 Views
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    Rabat – A recent study by Dubai World Trade Center (DWTC), parent organizer of GITEX, sheds light on Africa’s efforts to build a competitive digital economy through data centres. is emerging as a central pillar of the continent’s long-term technology strategy.

    Governments and private operators are expanding their infrastructure across multiple geographies in response to growing demand for cloud services, artificial intelligence, and digital financial platforms.

    Data centers power nearly every part of the modern digital economy, housing the computing power and storage needed to move and process data.

    Their role is becoming increasingly prominent as Africa aims to keep more data on the continent and reduce its dependence on overseas infrastructure.

    According to market estimates, Africa’s data center sector will grow from $3.49 billion in 2024 to $6.81 billion by 2030, representing an annual growth rate of 11.8%.

    This growth is closely tied to the expansion of artificial intelligence. Africa’s AI market was valued at $4.51 billion in 2025 and is expected to exceed $16.5 billion by 2030.

    Industry players emphasize that infrastructure development is a practical requirement rather than a policy goal, as AI systems cannot operate at scale without reliable data center capacity.

    Despite increased investment, basic infrastructure vulnerabilities continue to slow progress. According to Dr. Krishnan Ranganath, regional director for West Africa at Africa Data Centers, which operates carrier- and cloud-neutral facilities across the continent, transmission remains one of the most persistent challenges.

    Power plants exist in many African countries, but aging transmission lines and unstable power grids limit consistent supply to large facilities.

    Similar issues affect connectivity, with outdated terrestrial fiber networks and high bandwidth costs reducing data center performance.

    Ranganath points out that without reliable power and affordable connectivity, facilities will have a hard time delivering economic value.

    “Every country needs strong networks, and we have to solve the fundamental problems from the grassroots level so that Africa’s infrastructure can be integrated within five to 10 years,” he told DWTC.

    Fragmentation continues to limit continental size

    Regulatory fragmentation adds further complexity. Different data localization laws, sovereignty requirements, and national standards require companies to adapt their operations from country to country.

    These fluctuations increase costs, limit cross-border integration, and weaken Africa’s ability to operate as a single digital market.

    A lack of regulatory coherence also impacts investment decisions. Operators face uneven market maturity and inconsistent rules, which can slow deployment and reduce efficiency.

    Industry players argue that data centers alone cannot drive transformation without parallel improvements in power infrastructure, connectivity and digital skills.

    At the same time, the development of digital infrastructure continues across the continent. Countries such as Morocco, Kenya, Egypt, Nigeria and South Africa are advancing national roadmaps and are attracting interest from global cloud and technology providers.

    The broader outlook reflects this momentum, with Africa’s cloud computing market expected to reach $45 billion by 2031, and fintech expected to grow to $65 billion by 2030.

    Read more: Morocco unveils “Morocco IA 2030” roadmap to strengthen AI governance and digital sovereignty

    In Morocco, the government officially launched the national AI roadmap, Morocco IA 2030, on Monday, January 12, during an event in Rabat focused on the use of AI in public services.

    Branded under the label “AI Made in Morocco,” the initiative translates the results of the National Artificial Intelligence Conference held in July 2025 into an operational framework and focuses on digital sovereignty, skills development, applied research, and the creation of a national network of AI centers of excellence known as Jazari Institutes.

    Africa’s digital economy is predicted to reach $1.5 trillion by 2030. Industry leaders say they recognize that potential depends less on isolated projects and more on concerted investments in infrastructure, regulation and regional cooperation that allow digital systems to scale across borders.

    These investments are planned to target data centres, cloud computing, fintech and AI across the continent.

    DWTC’s research comes against a backdrop of increased focus on data center infrastructure across Africa’s technology sector.

    GITEX Africa will be held in Marrakech from April 7th to 9th, 2026. expanded Upcoming programs, including a new showcase dedicated to data centres, reflect its emergence as one of the fastest growing segments on the continent.

    Organizers placed this sector alongside other high-growth areas in the regional technology ecosystem, such as fintech and the future of finance, future mobility and sports technology.

    African billion bottlenecks centers connectivity data face growth Market power
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