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Africa Data Center Power Market Size (2024 - 2029)

The Africa Data Center Power Market is projected to experience significant growth over the forecast period, driven by the increasing demand for reliable and stable power supply to support the expanding data center operations across the region. Despite challenges such as grid instability in South Africa, which can impact data center sustainability, the market is poised for expansion due to the rising IT load capacity and the construction of additional infrastructure. The development of submarine cable systems further enhances connectivity, contributing to the market's growth trajectory.

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Market Size of Africa Data Center Power Industry

Africa Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 502.70 Million
Market Size (2029) USD 925.5 Million
CAGR (2024 - 2029) 13.40 %
Market Concentration High

Major Players

Africa Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Power Market Analysis

The Africa Data Center Power Market size is estimated at USD 502.70 million in 2024, and is expected to reach USD 925.5 million by 2029, growing at a CAGR of 13.40% during the forecast period (2024-2029).

African data centers use a considerable amount of power, and commercial DC power usage has been growing by an average of 40% annually over the past five years as adoption has accelerated. It was expected to pass the 4,000 GWh mark in 2022. South Africa's power grid has experienced challenges with reliability and stability, leading to potential disruptions in data center operations. Data centers require a reliable and stable power supply to ensure uninterrupted operations, and grid instability can impact their sustainability efforts. Such factor leads to major market demand.

  • The upcoming IT load capacity of the Africa data center power market is expected to reach 1,226 MW by 2029.
  • The region's construction of raised floor area is expected to increase 5.2 million sq. ft by 2029.
  • The region's total number of racks to be installed is expected to reach 260 K units by 2029. South Africa is expected to house the maximum number of racks by 2029.

There are close to 70 submarine cable systems connecting Africa, and many are under construction. One such submarine cable that is estimated to start service in 2024 is Africa-1, which stretches over 10,000 km with landing points in Port Said and Ras Ghareb in Egypt.

Africa Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance. 

The African data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, and power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service), end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), and geography (South Africa, Nigeria, and Rest of Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments. 

Power Infrastructure
Electrical Solution
UPS Systems
Generators
Power Distribution Solutions
PDU
Switchgear
Critical Power Distribution
Transfer Switches
Remote Power Panels
Others
Service
End User
IT and Telecommunication
BFSI
Government
Media and Entertainment
Other End Users
Geography
South Africa
Nigeria
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Africa Data Center Power Market Size Summary

The Africa data center power market is experiencing significant growth, driven by the increasing demand for data center infrastructure across the continent. This expansion is largely fueled by the rapid adoption of digital technologies and the need for reliable power supply to support data center operations. South Africa, despite its challenges with power grid stability, remains a key player in the market, with substantial investments in solar energy to mitigate dependency on fossil fuels. The region's telecom sector, particularly in Nigeria, is also contributing to market growth, with high connectivity requirements and the rollout of advanced mobile networks like 5G. The presence of numerous submarine cable systems further enhances connectivity, supporting the burgeoning data center industry.

The market is characterized by a competitive landscape with major players such as Aggreko ZA, ABB Ltd, and Cummins Inc. These companies are leveraging strategic partnerships and technological innovations to expand their market presence and improve service offerings. The introduction of advanced power management solutions, such as cloud-switched PDUs and lithium-ion UPS systems, highlights the industry's focus on efficiency and sustainability. Additionally, collaborations with tech giants like Microsoft and investments in renewable energy sources are shaping the future of data center power solutions in Africa. As the market continues to evolve, it is poised to play a crucial role in supporting the continent's digital transformation journey.

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Africa Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End Users

    3. 2.3 Geography

      1. 2.3.1 South Africa

      2. 2.3.2 Nigeria

Africa Data Center Power Market Size FAQs

The Africa Data Center Power Market size is expected to reach USD 502.70 million in 2024 and grow at a CAGR of 13.40% to reach USD 925.5 million by 2029.

In 2024, the Africa Data Center Power Market size is expected to reach USD 502.70 million.

Africa Data Center Power Market Report Snapshots

Africa Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)