| Study Period | 2019 - 2031 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2031 |
| Market Size (2025) | USD 1.44 Billion |
| Market Size (2031) | USD 2.60 Billion |
| CAGR (2025 - 2031) | 10.27 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
South Africa Data Center Construction Market Analysis
The South Africa Data Center Construction Market size is estimated at USD 1.44 billion in 2025, and is expected to reach USD 2.60 billion by 2031, at a CAGR of 10.27% during the forecast period (2025-2031).
- Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center construction market is expected to reach more than 500 MW by 2030.
- Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase by more than 29,00,000 sq. ft by 2030.
- Planned Racks: The country's total number of racks to be installed is expected to reach more than 57,000 units by 2030.
- Planned Submarine Cables: There are close to 8 submarine cable systems connecting South Africa, and many are under construction.
South Africa Data Center Construction Market Trends
Tier 3 Data Centers Holding Significant Market Share
- The data center construction market in South Africa is steadily growing, prompting service providers to embrace tier 3 standards. This shift has led to a rise in tier 3 colocation facilities across the nation. Presently, South Africa boasts 16 tier 3 facilities, with Johannesburg standing out as the hub for these installations.
- Data centers classified as tier 1 and 2 are witnessing a drop in demand, failing to keep pace with the increasing need for uninterrupted services from businesses. As global conglomerates multiply, the focus is now pivoting toward 24/7 business continuity services, elevating the appeal of tier 3 and 4 data centers.
- By 2023, tier 3 data centers are set to dominate, projected to secure a commanding 65% market share. These facilities stand out for their robust power and cooling redundancies, coupled with a wide array of onsite services. Industries such as BFSI, telecom, and media, with a notable focus on entertainment, are increasingly turning to wholesale and hyperscale colocation facilities, driving up the demand for tier-3 centers. For instance, South Africa boasted 26 million active social media users as of January 2024, marking a significant surge from 9.8 million users in 2014, almost 2.5 times the figure. As of Q3 2023, WhatsApp is the leading social media platform in the country.
- In 2023, Teraco Data Environments (Digital Realty) surpassed its competitors, claiming the top spot for IT load capacity in tier 3 data centers.
- Over 10 tier 3 data centers are currently under construction. Notably, Teraco Data Environments (Digital Realty) and Vantage Data Centers are prominent players in this expansion. These instances drive growth for the data centers in the country and promote operators to expand or build new data centers to support data processing needs.
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IT and Telecom Segment to Have Significant Market Share
- South Africa boasts one of Africa's most expansive information and communications technology (ICT) markets. With numerous enterprises and organizations transitioning their operations to cloud platforms, the market is experiencing a significant upsurge in growth.
- South Africa's favorable business environment and strategic positioning render it an attractive hub for data center investments. The surge in digital technologies, notably AI and big data, coupled with a rising appetite for cloud services, underscores the nation's growing demand for robust data storage and processing capabilities. Notably, major players like AWS, Google, Microsoft, Huawei, and Oracle have already recognized this potential, exemplified by AWS's commitment to infuse USD 1.66 billion into its South African cloud infrastructure by 2029, a plan unveiled in April 2023.
- Multiple global corporations are tapping into South Africa's data center market through strategic partnerships with local data center providers. In a notable move, Alibaba, in October 2023, unveiled its cloud region in Johannesburg, South Africa. This initiative was made possible through a collaboration with BCX, a subsidiary of Telkom, and their Africa Local Public cloud service.
- South Africa leads the region in embracing data localization and pioneering technologies like 5G. The adoption of 5G-capable devices has surged, with users leaping from 0.9% in Q1 2021 to 5.6% in Q1 2022. Notably, MTN, a prominent telecom operator, bolstered its 5G availability from 1.0% in Q1 2021 to an impressive 9.7% in Q1 2022, surpassing its competitors. This uptrend is poised to attract investors eyeing data center developments in the country, buoyed by the nation's growing appetite for advanced IT infrastructure and a notable shift toward colocation and managed services.
- As part of its commitment to bridging the digital divide, especially in rural areas, the South Africa Connect initiative has embarked on its second phase. The goal is to ensure that by 2030, 100% of the population has access to a minimum of 10 Mbps broadband, with 80% enjoying speeds of up to 100 Mbps. These instances drive growth for the data centers in the country and promote operators to expand or build new data centers to support data processing needs.
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South Africa Data Center Construction Industry Overview
The South African data center construction market features key players like EDS Engineers and Turner & Townsend Limited, among others, leading to a slightly fragmented landscape. Notably, major data center corporations are intensifying their investments in South Africa, with a primary focus on acquisitions, expansion, and building new facilities. This uptick in investments directly correlates with the growing demand for advanced data processing and storage capabilities.
- January 2024: Convergence Partners, a private equity firm, made a strategic move by acquiring Datacentrix, a prominent South African company specializing in IT network management and data center operations. This acquisition marks the sixth for Convergence Partners in 2024, underscoring its commitment to deploying its USD 300 million Africa tech-focused fund.
- November 2023: Open Access Data Centres (OADC), a prominent Pan-African operator, was in the process of expanding its data center located in Johannesburg, South Africa. The company initiated the second phase of expansion at its Isando facility, with a completion target in 2024. This expansion is supposed to introduce an additional 4 MW of power and accommodate 600 racks. Impressively, the Isando site boasts a potential expansion capacity of up to 3,000 sq. m (32,300 sq. ft) and 15 MW.
South Africa Data Center Construction Market Leaders
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Royal HaskoningDHV
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Rider Levett Bucknall
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EDS Engineers
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Turner and Townsend Limited
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ISF Group
- *Disclaimer: Major Players sorted in no particular order
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South Africa Data Center Construction Market News
- February 2024: Equinix Inc. decided to invest USD 390 million in Africa over the next five years. The investment will focus on constructing new data centers and bolstering its existing operations, primarily in South Africa and the western regions of the continent.
- January 2023: Africa Data Centres, a subsidiary of Cassava Technologies, a prominent pan-African technology conglomerate, revealed plans for its second data center in Cape Town. Positioned in the northern region of the city, this new facility is set to accommodate an IT load of 20 MW. With construction already in progress, the center is slated for completion and operational status by 2024.
South Africa Data Center Construction Industry Segmentation
Data center construction combines physical processes used to construct a data center facility. It chains construction standards with data center operational environment requirements.
The South African data center construction market is segmented by infrastructure (electrical infrastructure (power distribution solution (PDU, transfer switches, switchgear, power panels and components, and other power distribution solutions)), power backup solution (UPS, generators), service–design & consulting, integration, support & maintenance)), mechanical infrastructure (cooling systems (immersion cooling, direct-to-chip cooling, rear door heat exchanger, in-row and in-rack cooling)), racks, and other mechanical infrastructure)), and general construction)), tier type (tier 1 and 2, tier 3, and tier 4), and end user (banking, financial services and insurance, IT and telecommunications, government & defense, healthcare, and other end users). The market sizes and forecasts are provided in USD value for all the above segments.
| By Infrastructure | By Electrical Infrastructure | Power Distribution Solution | PDU - Basic & Smart - Metered & Switched Solutions | |
| Transfer Switches | Static | |||
| Automatic (ATS) | ||||
| Switchgear | Low-Voltage | |||
| Medium-Voltage | ||||
| Power Panels and Components | ||||
| Other Power Distribution Solutions | ||||
| Power Backup Solutions | UPS | |||
| Generators | ||||
| Service - Design & Consulting, Integration, Support, and Maintenance | ||||
| By Mechanical Infrastructure | Cooling Systems | Immersion Cooling | ||
| Direct-to-Chip Cooling | ||||
| Rear Door Heat Exchanger | ||||
| In-Row and In-Rack Cooling | ||||
| Racks | ||||
| Other Mechanical Infrastructure | ||||
| General Construction | ||||
| By Tier Type | Tier 1 and 2 | |||
| Tier 3 | ||||
| Tier 4 | ||||
| By End User | Banking, Financial Services, and Insurance | |||
| IT and Telecommunications | ||||
| Government and Defense | ||||
| Healthcare | ||||
| Other End Users | ||||
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South Africa Data Center Construction Market Research FAQs
How big is the South Africa Data Center Construction Market?
The South Africa Data Center Construction Market size is expected to reach USD 1.44 billion in 2025 and grow at a CAGR of 10.27% to reach USD 2.60 billion by 2031.
What is the current South Africa Data Center Construction Market size?
In 2025, the South Africa Data Center Construction Market size is expected to reach USD 1.44 billion.
Who are the key players in South Africa Data Center Construction Market?
Royal HaskoningDHV, Rider Levett Bucknall, EDS Engineers, Turner and Townsend Limited and ISF Group are the major companies operating in the South Africa Data Center Construction Market.
What years does this South Africa Data Center Construction Market cover, and what was the market size in 2024?
In 2024, the South Africa Data Center Construction Market size was estimated at USD 1.29 billion. The report covers the South Africa Data Center Construction Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South Africa Data Center Construction Market size for years: 2025, 2026, 2027, 2028, 2029, 2030 and 2031.
South Africa Data Center Construction Industry Report
Statistics for the 2025 South Africa Data Center Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Data Center Construction analysis includes a market forecast outlook for 2025 to 2031 and historical overview. Get a sample of this industry analysis as a free report PDF download.
