Despite its meteoric rise in data centre development and it accounting for 20% of the global population, Africa still only has 0.6% of global data centre capacity.
This is based on the 2026 Economic Report: Data Centres in Africa, published by Africa Data Centres Association (ADCA), in partnership with Rising Advisory.
The US hosts about 45% of the world’s data centres, while Africa accounts for less than 1% of global capacity.
According to the report, Africa’s active capacity stands at 360MW, with 238MW under construction and 656MW in the pipeline.
By comparison, global active capacity is at 5.5GW, with 1.5GW under construction and a development pipeline of 13.5GW.
Even if all of Africa’s announced projects materialise, says the report, the continent is projected to maintain rather than increase its global share, as hyperscale expansion accelerates elsewhere.
“This is not a catch-up cycle; it is a race to avoid deeper structural marginalisation in global compute,” notes Faith Waithaka, chairperson of ADCA.
“Capacity development in Africa must be approached with a long-term perspective, recognising that infrastructure growth will precede full utilisation as digital ecosystems continue to evolve.
“Sustainability is now a central consideration for the sector. Improving energy-efficiency and integrating renewable energy sources are essential to the viability of data centre operations. Africa is uniquely positioned in this regard, with vast untapped potential across solar, wind, hydro and geothermal resources. Leveraging these assets can support greener data centres, while strengthening energy security and long-term competitiveness.”
Africa’s data centre market is projected by Mordor Intelligence to reach $4.36 billion by 2031, with the South African market considered a “sweet spot” due to its favourable position on the African continent.
South Africa is the largest data centre market on the continent, with55 data centres already built. The country’s geographical position also makes it a strategic hub for regional and international connectivity.
Firms such as Digital Realty-owned Teraco, Vantage Data Centres, Open Access Data Centres and Equinix have expanded their data centre footprint in SA, while hyperscalers Amazon Web Services (AWS), Google and Microsoft Azure have also built local data centre facilities.
The country’s data centre momentum has been highlighted by president Cyril Ramaphosa on several occasions, notably stating that more than R50 billion in investment is expected in the local data centre space over the next three years.
The data centre capacity buildout has also resulted in government calling for accelerated cloud migration, as the state’s digital transformation efforts require greater use of cloud.
Digital rush
The report notes that the global data centre industry is booming as demand for this “digital gold” accelerates.
Valued at $243 billion in 2025, the market is projected to double by 2032, according to the World Economic Forum.
Meanwhile, UN Trade and Development reports that data centre projects accounted for over one-fifth of all greenfield foreign direct investment in 2025.
“This surge reflects the growing need for artificial intelligence (AI) infrastructure, cloud services and digital networks, positioning data centres as indispensable assets driving global growth strategies,” states the report.
“Several converging trends are driving this expansion. Cloud adoption continues to shift workloads off-premises, while AI and big data are reshaping infrastructure needs.”
On the other hand, hyperscale facilities − operated by giants like AWS, Microsoft, Google and Alibaba − have doubled in number roughly every five years, with hyperscale capital expenditure rising nearly 58% year-on-year in 2024.
“Governments across Asia, the Middle East and Africa are offering incentives to attract greenfield projects, recognising data centres as foundations for innovation, skilled employment, and adjacent industries like fintech and AI. Yet Africa faces a stark challenge.
“The continent’s share is expected to expand only in line with global growth, rather than closing the gap. This opportunity has not stayed unnoticed, and investors, expecting high returns, have poured funds into increasing the sector’s capacity by approximately two-thirds.”
Legal steps
According to the report, the heightened activity in the data centre market has resulted in data sovereignty becoming policy reality.
It notes that as of early this year, over 40 African nations have enacted data protection legislation or established data protection authorities, while five additional countries are drafting laws.
Additionally, 15 countries have formalised national AI strategies.
As noted in the ADCA report, the frameworks aim to protect citizens’ rights, while providing legal certainty for investors and digital service providers.
“Governments are increasingly recognising data centres as critical national infrastructure, central to digital sovereignty, financial stability and AI competitiveness.
“As Africa’s digital economies expand, the rules governing ‘where’ and ‘how’ data is stored, processed and transferred are becoming central to economic competitiveness and state capacity.
“Data sovereignty – the principle that data generated within a country should be governed by that country’s laws – has evolved from a legal aspiration into a strategic policy lever, shaping investment patterns, infrastructure deployment and the localisation of digital value chains.”
Even with the frameworks, enforcement capacity often lags legislative ambition, states the report.
“World Bank and GSMA assessments highlight constraints linked to staffing, funding and technical expertise. Yet this enforcement gap also represents a growth opportunity: stronger, more predictable regulation is increasingly seen by investors as a prerequisite for scaling local digital infrastructure. And well-functioning regulation is increasingly functioning as a demand signal.
“Clear localisation and data-protection requirements create predictable demand for compliant, in-country infrastructure, improving bankability for data centre projects and attracting long-term capital.
“Data localisation policies are emerging as part of this broader regulatory maturation. When aligned with market realities, localisation can strengthen oversight, improve accountability and support the development of domestic data centre ecosystems.”
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