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Africa Data Center Server Market Size (2024 - 2029)

The Africa data center server market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments by domestic players. This growth is reflected in the expanding market size, with substantial developments in IT load capacity, raised floor area, and the number of racks to be installed across the region. South Africa is anticipated to lead in rack installations, supported by the extensive network of submarine cable systems enhancing connectivity.

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Market Size of Africa Data Center Server Industry

Africa Data Center Server Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Forecast Data Period 2024 - 2030
Historical Data Period 2019 - 2022
CAGR (2024 - 2030) 15.40 %
Market Concentration Medium

Major Players

Africa Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Africa Data Center Server Market Analysis

The Africa Data Center Server Market is expected to register a CAGR of 15.40% during the forecast period.

The Africa data center server market reached a value of USD 2.3 billion in the previous year, and it is further projected to register a CAGR of 15.4% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (SMEs), government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the region.

  • The upcoming IT load capacity of the Africa data center construction market is expected to reach 1226 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 260K 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 Kilometers with a landing point in Port Said, Ras Ghareb, Egypt.

Africa Data Center Server Industry Segmentation

A data center server is basically a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, having a central processing unit (CPU), storage, and other electrical and networking equipment, making them powerful computers that deliver applications, services, and data to end-user devices.

The Africa data center server market is segmented by form factor (blade server, rack server, and tower server), by end-user (IT and telecommunication, BFSI, government, media and entertainment, and other end users), and by 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.

Form Factor
Blade Server
Rack Server
Tower Server
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-User
Geography
South Africa
Nigeria
Rest of Africa
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Africa Data Center Server Market Size Summary

The Africa data center server market is experiencing significant growth, driven by the increasing demand for cloud computing, particularly among small and medium-sized enterprises, and the need for data localization. This demand is further bolstered by government regulations aimed at enhancing local data security and the growing investments from domestic players. The region is witnessing a surge in cloud infrastructure adoption, which offers scalability and remote access, making it a crucial component for technology-driven businesses. The market is also benefiting from the expansion of internet connectivity and the deployment of new technologies such as 5G and IoT, which are expected to increase data traffic and, consequently, the need for data centers. South Africa stands out as a key player in the region, with its data center market expanding due to the rising consumption of data across various sectors, including e-commerce and digital banking.

The construction of data centers in Africa is set to increase, with significant projects underway to meet the growing demand for data center servers. The market is moderately consolidated, with major players like Dell Inc., Hewlett Packard Enterprise, Fujitsu, and Lenovo Group Limited leading the charge in expanding their regional presence. These companies are continuously innovating, as seen in recent product launches featuring next-generation servers and advanced processors. The establishment of Special Economic Zones and smart city investments in South Africa is further propelling the data center industry, attracting investors to develop new facilities. The increasing adoption of digital payment methods and the expansion of e-commerce are also contributing to the market's growth, as they drive the demand for robust data center services to support these digital transformations.

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Africa Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Adoption of cloud computing services

      2. 1.2.2 Advent of 5G networks

    3. 1.3 Market Restraints

      1. 1.3.1 Rising CapEx for data center construction

      2. 1.3.2 Cybersecurity Threats and Ransomware attacks

    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 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-User

    3. 2.3 Geography

      1. 2.3.1 South Africa

      2. 2.3.2 Nigeria

      3. 2.3.3 Rest of Africa

Africa Data Center Server Market Size FAQs

The Africa Data Center Server Market is projected to register a CAGR of 15.40% during the forecast period (2024-2030)

Dell Inc., Hewlett Packard Enterprise, Lenovo Group Limited, Cisco Systems Inc. and IBM Corporation are the major companies operating in the Africa Data Center Server Market.

Africa Data Center Server Market Report Snapshots

Africa Data Center Server Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)