According to analysis published by global research and advisory firm Arizton, the African data center investment market is on course to be worth US$ 8.76 billion by 2031. That’s a US$ 5.12 billion increase from the US$ 3.64 billion value accumulated by 2025 ,and on the back of that, data center capacity is expected to reach 348 MW over the same period.
There are several reasons why the African continent is becoming such a popular destination for data center investors. Among those are the availability of renewable energy sources, improving connectivity, and a mix of both established and emerging digital markets fueled by demand for digital services and transformation.
South Africa, Kenya, Nigeria, and Egypt have attracted the lion’s share of investment in the past, and while that remains true, emerging markets such as Morocco and Tunisia are rising in popularity among investors. For Morocco and Tunisia, proximity to Europe has attracted investors, as has extensive investment in subsea cables. The low-latency connectivity these cables offer to Europe and the rest of the world makes operators more inclined to set up shop in an African nation. One investment leads to another, and before too long data center operators are flooding the market, benefiting themselves and local economies. This isn’t a theory, the big four African economies are proof that enabling digital transformation attracts investment.
However, energy remains a major roadblock on the continent. Africa has long struggled with energy availability. While the continent only accounts for 6 percent of global energy use and less than 3 percent of energy-related carbon dioxide emissions according to the International Energy Agency. This is because per capita consumption is low due in large part to the fact that 600 million people don’t have access to electricity at all. However, Africa is a massive continent and there is incredible potential for nations to leverage the wealth of solar, wind, and hydroelectric power available on the continent, just waiting to be tapped into.
Teraco, a Digital Realty company and data center operator, entered into a wind energy supply agreement with NOA in 2025 shortly after commencing construction on its own 120 MW solar PV plant. On the opposite end of the continent, Egypt is investing heavily in renewable energy with a view to generating 42 percent of its electricity from renewable sources by 2030. Power projects that lean on renewable energy will continue to attract investment, but infrastructure needs to form part of that conversation, as even in established markets transmission grids tend to be antiquated and incapable of delivering additional energy to where it is needed. While this is changing, legislation in many African countries is a roadblock that sees investors looking elsewhere.
Connectivity continues to be a thriving investment in Africa, especially in Egypt where as many as 17 subsea cables have landed in the market with six more in development according to Arizton. Kenya and West Africa are also booming markets for connectivity as nations take stock of the importance of resilient and redundant connectivity.
While Africa has potential to be a digital infrastructure powerhouse, right now that potential isn’t being realized in a meaningful way. This is due to not only energy constraints but a lack of permissive legislation as regards private power generation, foreign investment, and infrastructure development. While Arizton’s data shows a continent rich with prospects, it’s up to African leaders to realise those prospects and usher in the digital age the rest of the world is capitalizing on.