Market Trends of South Africa Data Center Power Industry
IT and Telecom to Hold Significant Share
- Telecom providers are primarily responsible for driving content delivery and facilitating mobile and cloud services, which is why telecom data centers require high connectivity. This specific type of data center is connected to other data centers, cloud providers, and telecom operators through outside plant (OSP) cables, with cross-connects extensively deployed to ensure efficient operations.
- While most traditional data centers use alternating current (AC) power distribution systems, telecom data centers run on direct current (DC) power. Adding more battery strings allows DC power systems to easily be built and expanded over time as the load increases. Since telecom data centers manage network resources, such as vRAN and 5G packet core, the increasing load is expected to increase with major 5G deployment.
- The rapidly increasing 4G penetration and the upcoming 5G wave are adhering telecom vendors to invest in the South African data center power market. In October 2022, the South African telecom provider Telkom established the 5G high-speed internet network with the help of Huawei Technologies from China. Huawei continues to assist South Africa in developing its 5G networks. The prominent 5G network on the African continent has more than 2,800 base stations deployed.
- Overall, the data center power market is expected to expand in the telecom industry, mainly for UPS and PDU, due to its added benefits, which will lead to a major positive market trend.
Understand The Key Trends Shaping This Market
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Switched Power Distribution Unit (PDU) to Register Significant Growth
- The South African data center power market is expected to develop expressively over the prediction period owing to the region's huge potential for data center service providers. SMEs in South Africa are investing heavily in the cloud. The option to set up cloud resources in a multi-tenancy or shared model allows firms to take advantage of the cost savings realized by sharing infrastructure. The Flexera State of the Cloud Report revealed that 53% of SMEs spent more than USD 1.2 million on the cloud in 2023, up from 38% in 2022.
- The cloud switched PDU series provides a versatile power management solution featuring advanced surge protection, seamless cloud management, and easy installation. To take benefit of this untapped market, various large cloud companies are adopting such PDUs with increasing investment in the country. AWS announced plans to launch data center infrastructure in the country. AWS invested ZAR 15.6 billion (USD 858 million) through 2022 to meet customer demand for cloud computing services.
- Switched power distribution units also allow key personnel to control the on/off state of individual outlets remotely. This allows operators to manage critical loads, avoid wasted power, ensure equipment is plugged into the correct phase, and manage schedules. In South Africa, HPE offers HPE G2 metered and switched PDU, providing local and remote power management with outlet-level power metering and switching. An LCD screen provides local monitoring and alert indications, while remote access and configuration are obtainable through secure web, SNMP, CLI, or telnet interfaces.
- Furthermore, most of the biggest private companies in the country, as well as some government departments, have either migrated their data to public clouds or are in the process of doing so. With the increasing number of data centers, the demand for switched PDUs is expected to increase since they limit the power usage at the outlet to avoid accidental overloads and are ideal for remote data centers.
