By Edson Baraukwa | Africa Guardian
Africa’s data centre (DC) market and its evolving digital landscape reflect a dynamic blend of immense potential and significant challenges. As the continent advances toward digital transformation, sustainability in data centre design has become increasingly vital. Africa’s high temperatures require additional cooling, making access to renewable energy crucial, especially for multinational hyperscale providers.
Solar power stands out as a promising solution. Nine African countries are building solar capacities, with Egypt and South Africa already part of the “GW club,” each boasting over 1 GW of installed solar power. Morocco is also on a similar path with its 1200-hectare, 580 MW solar complex, which is the world’s largest concentrated solar power facility.
Africa is emerging as a leader in micro-grid capacity, with co-location and enterprise operators increasingly adopting renewable energy sources for data centres. For instance, Zimbabwe’s Econet, through its Distributed Power Africa unit, is integrating alternative energy solutions into its data centre assets across Burundi, Kenya, and South Africa. Simultaneously, efforts to establish an energy-efficiency code of conduct, inspired by the European Commission’s best-practice guidelines for data centre energy efficiency, are in progress. Another key focus for sustainable DC operations in Africa is addressing water consumption, particularly in cooling systems.
A March 2021 report by the International Monetary Fund highlighted the pandemic as an opportunity for African governments to boost funding for ICT skills, infrastructure, and technologies. This aligns with the continent’s broader digitalisation efforts, where the increasing use of mobile technologies and digital payments could accelerate industrialisation. Enhanced access to smartphones is driving consumer information, networking opportunities, job creation, and financial inclusion. For example, Rwanda is leveraging improved 4G coverage to expand mobile money usage, while Nigeria attracted more than $166.5 million in venture capital in the first half of 2023, the fourth-highest deal value on the continent. This investment has supported ICT ventures across various sectors, including education, financial technology, agriculture, healthcare, logistics, and travel.
Several African governments have committed to digital-first agendas to strengthen their economies and create jobs. Technology hubs like Silicon Savannah in Nairobi, Kenya, and Yabacon Valley in Lagos, Nigeria, are growing rapidly. According to a report by Google and Accenture, Africa had 716,000 professional developers in 2021, a 3.8% increase from 2020. The number of African start-ups securing venture funding grew at an average rate of 27.1% per year between 2015 and 2022, reaching 633 start-ups. However, most do not survive beyond the Series-B stage, with only 3% doing so in 2019. This high attrition rate is due to various factors, including political and economic instability, weak consumer purchasing power, inadequate data communications infrastructure, and a limited supply of digital talent.
Expanding the digital economy is crucial to overcoming these challenges. African start-ups are rising to the occasion by addressing critical public service gaps in healthcare, agriculture, and logistics. In Ethiopia, for example, several local ride-hailing apps and e-commerce markets have emerged, alongside an agri-tech incubator and a seed fund designed to boost local logistics and agri-food systems.
The development of global standards is essential to give investors and customers the confidence to engage in Africa’s rapidly expanding DC industry. Regulatory divergence often creates confusion and hinders growth, highlighting the need for a more uniform and globally recognised set of standards. The International Organisation for Standardisation (ISO) and the International Electrotechnical Commission (IEC) are collaborating to produce globally applicable best practice guidelines for data centres. The first set of full standards focusing on data centre resource efficiency, published in May 2023, has the potential to harmonise the industry’s understanding of energy efficiency under the power usage effectiveness (PUE) standard.
Enhanced collaboration between international organisations like the ISO and IEC and regional bodies such as the African Data Centres Association will help unify data centre standards and promote the adoption of internationally recognised best practices. Effective monitoring and compliance will be crucial to ensuring these standards are implemented and maintained. This process will require a concerted effort from DC operators, regulatory bodies, and international standard organisations.
To unlock its digital potential, Africa must focus on several key actions. Increasing investment in renewable energy sources for data centres, such as solar power, will be essential. Governments should prioritise funding for ICT skills development and infrastructure enhancements. Supporting start-ups by ensuring stable political and economic environments and improving data communications infrastructure will help them survive and thrive. Finally, unifying standards and ensuring compliance through regular audits and assessments will provide the foundation for a reliable and efficient data centre industry.
Africa’s journey towards digital transformation is both challenging and exciting. By addressing sustainability, strengthening the ICT ecosystem, committing to a digital-first agenda, and unifying standards, the continent can harness its vast potential and achieve significant economic growth and development.