African Digital Transformation and Data Centre Developments

The need for data centre developments in Africa is evolving, with increasing interest and investment in the region. The adoption of new digital business models, a rapid surge in mobile data usage, and a thriving technology sector in key hubs across the continent are placing increased demands on Africa’s digital infrastructure.

The foundations of Africa’s economic growth are shifting towards data centres. Fibre-optic broadband expansion and the rollout of telecom towers provide real opportunities for investment in new data centre developments. Benefitting from the digital infrastructure investment opportunity necessitates a thorough understanding of local dynamics, an Africa-specific experience and a forward-thinking approach.

As more businesses and households join the online realm, Africa is witnessing one of the fastest increases in internet penetration globally. Mobile data consumption in Africa is projected to grow by 40% annually until 2025. The evolution of internet usage in Africa has been rapid by 2022, and the continent had approximately 570 million internet users, more than double the number of users in 2015. Nigeria, the most populous African country, holds the highest concentration of users, having more than 100 million users in 2022. Following closely is Egypt with 76 million users.

The Opportunity for Data Centre Developments

Despite substantial advances, Africa has not yet fully realized its digital potential. Despite the growing number of internet users, the internet penetration rate in Africa fell below the global average in 2021. Addressing the rapid rise in demand presents an opportunity for the continent to build data centre developments that leapfrog outdated technologies, and usher in a new era that creates more advanced jobs and fosters the upskilling of local job seekers. The ongoing digital transformation creates a demand for robust data infrastructure, including data centre developments. The widespread use of mobile devices in Africa has been a significant driver of data consumption. As more people access the internet through smartphones, the demand for data centre services increases.

The adoption of cloud-based services is on the rise across the continent. Cloud providers are exploring opportunities for data centre developments in Africa to provide low-latency services and comply with data sovereignty regulations. Africa has abundant renewable energy resources, making the incorporation of renewable energy into data centre developments at the design stage environmentally friendly and exploits the potential for lower energy costs.

Some African governments, recognizing the importance of a robust digital infrastructure for economic development, are implementing policies to attract investments in the Information and Communication Technology sector, which includes data centres.

Data sovereignty concerns continue to be a focus and establishing local data centre developments helps service providers comply with data residency requirements and encourages international technology companies and data centre operators to explore partnerships with local businesses to facilitate data centre developments. Collaborations help leverage local expertise and navigate regulatory environments.

Developers in Africa that Deliver

Gateway Real Estate Africa (GREA) knows what it takes to develop a successful data centre in Africa, having provided the first phase of a Tier III, five-megawatt data centre in Eko Atlantic City, Lagos, Nigeria for Africa Data Centres.GREA, the development arm of Grit Real Estate Investment Group, is the largest income-focused real estate group across Africa. We specialize in creating customized turnkey projects in select African countries. We offer attractive, high-yield, investment opportunities in African real estate. Our team has delivered several award-winning developments with an extensive portfolio of premium projects. Contact us today for lucrative, prestige, African real estate developments.

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