With cross-border digitalization initiatives merging to shape the AI economy of tomorrow, Africa is currently unified in its pursuit of becoming a thriving, technologically advanced market that produces exceptional socio-economic benefits through world-class digital infrastructure.
Leading this collective endeavor is a key catalyst: data centers, designed to support the computing, storage, and networking systems that facilitate seamless data flow.
Yet, these purpose-built facilities represent more than just strategic interests for countries at both regional and global levels. They are essential assets, functioning as the connective framework of a modern digital economy and the cornerstone of innovation and productivity in the “Intelligence Age”—crucial for Africa to grow its digital economy, advance AI capabilities, and compete internationally.
These outcomes are legitimate possibilities, not mere chances, as supported by various compelling statistics. For example, the African data center market is expected to grow to $6.81 billion by 2030, nearly doubling from $3.49 billion in 2024, reflecting a compound annual growth rate (CAGR) of 11.8 percent.
Market growth predictions: From $4.51 billion to $16.5 billion
Since AI cannot operate at scale without data centers, the African AI market is also significant. Valued at $4.51 billion in 2025, the region’s AI market volume could surpass $16.5 billion by 2030, reflecting a compound annual growth rate (CAGR) of 27.42 percent—highlighting the substantial influence and impact of data centers.
Nevertheless, challenges must be acknowledged before opportunities can be realized, with transmission being one of the continent’s most enduring structural obstacles. This barrier hinders the rapid development of essential AI infrastructure and threatens Africa’s quest for global competitiveness.
This viewpoint comes from Dr. Krishnan Ranganath, Regional Executive – West Africa at Africa Data Centres (ADC), which represents Africa’s largest network of interconnected, carrier- and cloud-neutral data center facilities. With over thirty years of experience in the data center, cloud, connectivity, and managed IT services industries, he is exceptionally qualified to discuss the existing data center landscape in Africa.
“Transmission fundamentals are not in place across the region. It’s a common problem and one of our biggest challenges – whether this be transmission of power or internet bandwidth,” Dr. Ranganath revealed.
“Power is generated in abundance across Africa, but transmission lines are old and problems surrounding grids, terrestrial fibres, and distribution persist. Building data centres is the easiest thing – but they must be connected.
“If facilities depend on substandard connectivity, or if connectivity costs are high while power availability remains low, they essentially become concrete blocks and do not solve the problem.
“Every country requires a robust network – and we must fix the fundamentals from the grassroots level up so that in five to 10 years, African infrastructure can converge.”
The intricacies impeding continental scaling
In addition to outdated transmission infrastructure, fragmentation poses another challenge that is likely to impede planned data center deployment unless there is a unified response and coordinated action. From varying regulations to differing market maturity and inconsistent cross-border standards, each factor could drive up costs, limit scalability, and undermine investor confidence.
Several African countries impose stringent data localization and sovereignty requirements, forcing organizations to process and store data within their borders. This regulatory divergence is already raising costs and limiting growth.
This leads to a weakening of regional integration efforts, restricting Africa’s ability to position itself as a recognized digital and AI hub in a complex regulatory environment that inhibits deployment, dissuades cross-border investment, and limits developers.
This interplay of factors, each resulting from fragmentation, presently restricts the region from achieving the scale, efficiency, and investment necessary to compete on a global level. However, the region’s future digital growth will not be determined by data centers alone.
“The bigger picture – the bigger question – is how do we ensure Africa becomes 100 percent digitalized?” Dr. Ranganath continued. “How do we construct a digital economy and a digital Africa? Data centres play a role in that, but we must focus on the whole digital ecosystem – networks, power, human capacity, customers, consumers. All tie into the wider digital economy.”
Collaboration could ignite and define Africa’s digital ascension
Considering Dr. Ranganath’s question, another arises: is Africa able to close its divides and develop a unified, scalable digital economy that can compete on a genuinely global scale?
Countries like Morocco, Kenya, Egypt, Nigeria, and South Africa are swiftly advancing their digital infrastructure plans, attracting hyperscalers, and preparing for the upcoming AI economy as demand for AI, cloud services, fintech, and more skyrockets.
Notable projections also reflect the region’s upward trajectory. Africa’s cloud computing market is forecasted to reach $45 billion by 2031, its fintech market $65 billion by 2030, and the overall digital economy is expected to reach $1.5 trillion by 2030.
However, mere momentum won’t suffice to translate Africa’s data center and digital economy goals into reality. Fragmentation in regulations, standards, readiness, and market maturity risks creating disconnected areas of progress instead of a cohesive continental ecosystem, jeopardizing Africa’s plans and potential altogether.
For Dr. Ranganath, a reasonable next step surfaces—an action that could set the essential groundwork for a future where Africa’s synchronized digital rise can flourish.
“We have to believe all African nations can work together as one, because without this belief, it will not happen,” he added. “Theoretically, it can happen. But practically? It is possible – perhaps not on such a large scale right away – but we can begin in a different way.
“No president will say ‘no’ when it comes to the development of their own country. Rather than standards and regulations per each individual country, we need national leaders coming together to establish guidelines and the most prudent way forward.
“If nations in the North, South, East, and West are aligned and 8–10 countries in four different regions are collaborating from within, progress toward a unified Africa would be made while all the various trade associations and relevant commissions collaborate.
“We need to find a way – and it is high time.”
