The 1942 Hollywood classic Casablanca may have made it famous, but today Morocco is drawing attention for a very different reason: Morocco is emerging as a key Cloud and Data Center market in North Africa. Here’s a closer look at what makes it special.
What does the Data Center Market look like?
Morocco’s data centre journey goes back to around 2000, when it catered mainly to local demand from the telecom sector. “Starting as a market focussed on servicing local network and telecommunications demands, Morocco took its initial steps into servicing colocation demand in the early 2010s, homing in on the retail colocation market,” says Knight Frank’s The MENA Report: Navigating the Data Centre landscape in the Middle East and North Africa, tracing the growth of the industry. It regards Morocco as one of the five key data centre markets in Africa and a connectivity gateway between Africa and Europe.
According to Arizton Intelligence, the Morocco data centre market size will witness investments of US$ 51.0 million by 2028, growing at a CAGR of 11.18 percent during the forecast period (2023-2028).
Who is here, who is on the way?
The country’s IT infrastructure is strengthening with more investments into the market. In the third quarter of 2023, African Infrastructure Investment Managers (AIIM) announced an investment of US$90 million in a new joint venture with Morocco’s N+ONE Data Centres facilities. This joint platform aims to bridge the digital infrastructure gap in Africa by providing quality digital infrastructure and promoting the expansion of local and international companies within the Africa market.
Multinational technology company Oracle also recently announced its plan to open two new data centres in Morocco. The new initiative will help drive digital transformation in Morocco, benefitting various stakeholders that need to migrate mission-critical workloads from their data centre to Oracle Cloud Infrastructure, while complying with local regulations.
Richard Smith, executive vice president for technology in Europe, the Middle East and Africa at Oracle said, “As one of the largest economies in Africa … Morocco offers unique growth opportunities for businesses that are aiming to accelerate their expansion by deploying the latest digital technologies.”
How are Government Initiatives and Policies helping?
To further encourage and promote the growth of the data centre industry in Morocco, the government has also established Industrial Acceleration Zones where operators can benefit from tax optimisation and other financial incentives, creating a more ideal environment for businesses to thrive. This highlights the strategic vision of the Moroccan government in positioning the country as a key hub for innovation and economic growth in North Africa, leveraging its resources and infrastructure to attract investment and foster development.
“The creation of the Digital Development Agency, as well as the introduction of schemes such as the National Digital 2020 strategy have helped in drawing funding and encouraged the expansion of the country’s data centre infrastructure,” points out Knight Frank’s The MENA Report.
Morocco relies heavily on imported fossil fuels for its energy resources which increases the chances of energy instability within the country. The Moroccan government recognises this as an issue and has launched their National Energy and Energy Efficiency Plan (NEEAP) since 2008. The plan reduced carbon emissions and improved access to electricity for remote rural areas. The country is also on route to achieving its 2030 target of 52 percent renewable energy.
What lies ahead?
With a rapidly growing internet penetration rate, Morocco now leads Africa at 90.7 percent. The question is no longer who will adopt digitalization, but when it will fully take hold. Industries across sectors, from manufacturing to finance, are already embracing digital transformation. This widespread digital expansion highlights the rising demand for more reliable and efficient data centres.
As Africa’s internet economy continues to evolve, the data centre industry will play a pivotal role in driving economic growth and development. To paraphrase Rick Blaine, here’s looking at you, Morocco!