Africa’s Digital Future – Building Critical Power Infrastructure for Data Center Leadership
January 2026 Power and Protection
Africa’s digital economy is growing rapidly due to the digital shift across the continent. Investment in cloud services, e-commerce and digital finance is increasing, and data center development is accelerating, with countries such as South Africa, Nigeria and Kenya leading the way. However, major challenges remain. To ensure lasting success, sustainable and reliable power systems must form the backbone of Africa’s digital growth.
Overcoming the reliability barrier
ACTOM Smart Herman Mair, general manager at Technologies, said: “Many parts of Africa continue to suffer from unstable power supplies. For example, Nigeria’s electricity grid relies heavily on diesel generators during power outages, and South Africa faces frequent power outages. Fortunately, solutions are available. Data center operators can achieve high reliability with redundant power circuits, strong backup systems, and advanced monitoring techniques that enable continued operation despite grid problems.”
Combining reliability and sustainability
Data center developers around the world and the region now need to build reliable and environmentally friendly facilities. Relying solely on diesel power is no longer practical due to high costs and environmental concerns. Instead, hybrid power systems that combine renewable energy sources such as solar and wind power with storage batteries are gaining attention. These systems reduce dependence on diesel generators, provide uninterrupted power, and meet international environmental standards.
“Diesel generators continue to play an important role as backup, but over-reliance on diesel generators creates operational and environmental risks. Diesel use leads to negative environmental impacts, high costs, and failure to comply with global sustainability standards. Adopting renewable energy systems with storage options can ensure reliable power, reduce environmental impact, and attract environmentally conscious investors.”
said Herman Mair, General Manager of ACTOM Smart Technologies.
Urban and rural challenges
Another issue is how the physical characteristics of each area affect power infrastructure design. Urban areas have the advantage of being close to substations and communications infrastructure, making them suitable for large data centers even though electricity costs are high. In contrast, rural areas have abundant land and low land costs, but face challenges when it comes to power transmission. These issues require investments in new substations, transmission lines, and microgrid systems, which have proven effective in supporting a variety of rural data centers.
“South Africa is introducing electricity transmission to enable the transfer of energy between locations, and Kenya is using hybrid microgrids to provide reliable power to underserved areas,” Mair said. “These developments will help address regulatory uncertainty and build resilient and sustainable power solutions.”
“Scaling up digital infrastructure relies heavily on public-private partnerships. Governments can create opportunities through policies that encourage renewable energy, wheeling and feed-in tariffs. At the same time, private sector investment in substations, transmission systems and hybrid energy equipment is essential. Collaborative efforts will shape Africa’s ability to attract and sustain investment in digital growth.”
Strengthening competitiveness
High electricity prices are an impediment to Africa’s competitiveness. However, the continent’s vast land resources and abundance of renewable energy offer significant advantages. These factors make Africa an attractive destination for investors seeking large-scale data center projects, giving the continent a strategic advantage in the global digital economy.
“Long-term infrastructure development is essential to Africa’s digital future. Smart investments in electricity grids, substations and renewable energy systems will build a solid foundation to support decades of growth. The choices we make today will impact Africa’s global position in digital infrastructure and ensure we remain competitive well into the future,” concludes Mair.
For more information, contact ACTOM, +27 10 136 0216, mamiki.matlawa@actom.co.za, www.actom.co.za.
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