Who are the key players in South Africa Data Center Power Market?

Caterpillar Inc., Eaton Corporation, Rittal GmbH & Co. KG, Vertiv Group Corp and ABB Ltd are the major companies operating in the South Africa Data Center Power Market. Read More

What years does this South Africa Data Center Power Market cover, and what was the market size in 2023?

In 2023, the South Africa Data Center Power Market size was estimated at USD 156.73 million. The report covers the South Africa Data Center Power Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the South Africa Data Center Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

South Africa Data Center Power Market Size

Market Size of South Africa Data Center Power Industry

South Africa Data Center Power Market Summary

Study Period	2019 - 2029
Base Year For Estimation	2023
Market Size (2024)	USD 181.40 Million
Market Size (2029)	USD 333.5 Million
CAGR (2024 - 2029)	13.60 %
Market Concentration	Low
Major Players *Disclaimer: Major Players sorted in no particular order

South Africa Data Center Power Market Analysis

The South Africa Data Center Power Market size is estimated at USD 181.40 million in 2024, and is expected to reach USD 333.5 million by 2029, growing at a CAGR of 13.60% 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.

Usage levels are expected to double over the next five years, and projections of DC power consumption will grow by 20% to 25% annually, expecting to reach nearly 8,000 GWh by 2026.

Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center power market is expected to reach 828.92 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 220,201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Africa, and many are under construction. One such submarine cable that was estimated to start service in 2023 was 2Africa, which stretched over 45,000 km with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South 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 South 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) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). 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

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South Africa Data Center Power Market Size Summary

The South African data center power market is poised for significant growth over the forecast period, driven by the increasing demand for reliable and efficient power solutions in the region's data centers. The market is characterized by a shift towards direct current (DC) power systems, particularly in telecom data centers, which are essential for supporting the expanding 4G and upcoming 5G networks. The need for stable power supply is critical, given the challenges faced by South Africa's power grid, which has experienced issues with reliability and stability. This has led to a surge in demand for advanced power distribution units (PDUs) and uninterruptible power supplies (UPS) to ensure uninterrupted operations. The market is also witnessing substantial investments from major cloud service providers, such as AWS, who are expanding their infrastructure to meet the growing cloud computing demands from small and medium enterprises (SMEs) in the country.

The competitive landscape of the South African data center power market is slightly fragmented, with key players like ABB Ltd, Caterpillar Inc., and Eaton Corporation leading the charge. These companies are focusing on strategic collaborations and innovative product launches to enhance their market presence and cater to the evolving needs of data center operators. The introduction of advanced power management solutions, such as Eaton's Rack PDU G4 and ABB's Protecta Power panel board, underscores the industry's commitment to providing high-security and efficient power solutions. Additionally, partnerships aimed at exploring eco-friendly power alternatives, such as hydrogen fuel cells, highlight the market's focus on sustainability. As the number of data centers continues to rise, the demand for sophisticated power management systems is expected to increase, further propelling the market's growth trajectory.

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South Africa Data Center Power Market Size - Table of Contents

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. 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

South Africa Data Center Power Market Size FAQs

How big is the South Africa Data Center Power Market?

The South Africa Data Center Power Market size is expected to reach USD 181.40 million in 2024 and grow at a CAGR of 13.60% to reach USD 333.5 million by 2029.