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Home > Headlines > Africa’s Data Center Push Faces Power and Connectivity Bottlenecks Despite $6.8B Market Growth

Africa’s Data Center Push Faces Power and Connectivity Bottlenecks Despite $6.8B Market Growth

Africa’s digital economy is projected to reach $1.5 trillion by 2030, driven by expanding investment in data centers, cloud computing, fintech, and AI across the continent.

Oumaima Moho AmerbyOumaima Moho Amer
Jan, 15, 2026
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Africa’s Data Center Push Faces Power and Connectivity Bottlenecks Despite $6.8B Market Growth

Africa’s Data Center Push Faces Power and Connectivity Bottlenecks Despite $6.8B Market Growth

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Rabat – A recent study by Dubai World Trade Centre (DWTC), GITEX’s parent organizer, illuminates Africa’s push to build a competitive digital economy with data centers emerging as a central pillar of the continent’s long-term technology strategy.

Across multiple regions, governments and private operators are expanding infrastructure in response to growing demand for cloud services, artificial intelligence, and digital financial platforms. 

Data centers underpin nearly every part of the modern digital economy, housing the computing power and storage required to move and process data.

Their role has become increasingly visible as Africa looks to keep more data on the continent and reduce reliance on overseas infrastructure.

Market estimates show the African data center sector growing from $3.49 billion in 2024 to $6.81 billion by 2030, representing an annual growth rate of 11.8%. 

This growth is closely tied to the expansion of artificial intelligence. Africa’s AI market is valued at $4.51 billion in 2025 and is expected to rise above $16.5 billion by 2030.

Industry figures stress that AI systems cannot operate at scale without reliable data center capacity, making infrastructure development a practical requirement rather than a policy ambition. 

Despite increased investment, basic infrastructure weaknesses continue to slow progress. Transmission remains one of the most persistent challenges, according to Dr. Krishnan Ranganath, Regional Executive for West Africa at Africa Data Centres, which operates carrier- and cloud-neutral facilities across the continent. 

Power generation exists in many African countries, but ageing transmission lines and unstable grids limit consistent delivery to large facilities.

Similar problems affect connectivity, where outdated terrestrial fibre networks and high bandwidth costs undermine the performance of data centers.

Ranganath notes that without dependable power and affordable connectivity, facilities struggle to deliver economic value. 

“Every country requires a robust network – and we must fix the fundamentals from the grassroots level up so that in five to 10 years, African infrastructure can converge,” he told DWTC.

Fragmentation continues to limit the continental scale

Regulatory fragmentation adds another layer of complexity. Different data localization laws, sovereignty requirements, and national standards force companies to adapt operations country by country.

These variations increase costs and restrict cross-border integration, weakening Africa’s ability to operate as a single digital market. 

The lack of regulatory alignment also affects investment decisions. Operators face uneven market maturity and inconsistent rules, which can slow deployment and reduce efficiency.

Industry participants argue that data centers alone cannot drive transformation without parallel improvements in power infrastructure, connectivity, and digital skills. 

At the same time, digital infrastructure development continues across the continent. Countries including Morocco, Kenya, Egypt, Nigeria, and South Africa are advancing national roadmaps and attracting interest from global cloud and technology providers.

The broader outlook reflects this momentum, with Africa’s cloud computing market projected to reach $45 billion by 2031 and fintech expected to grow to $65 billion by 2030.

Read more: Morocco Launches ‘Maroc IA 2030’ Roadmap To Strengthen AI Governance, Digital Sovereignty 

In Morocco, the government officially launched its national AI roadmap, Maroc IA 2030, during an event in Rabat focused on the use of AI in public services on Monday, January 12.

Branded under the label “AI Made in Morocco,” the initiative translates the outcomes of the National Artificial Intelligence Conference held in July 2025 into an operational framework, with a focus on digital sovereignty, skills development, applied research, and the creation of a national network of AI centers of excellence known as the Jazari Institutes.

Africa’s digital economy is projected to reach $1.5 trillion by 2030. Industry leaders say realizing that potential will depend less on isolated projects and more on coordinated investment in infrastructure, regulation, and regional cooperation that allows digital systems to scale across borders. 

 These investment are planned to be aimed at data centers, cloud computing, fintech, and AI across the continent.

DWTC’s study comes against the backdrop of growing attention on data center infrastructure across Africa’s technology sector.

GITEX Africa, set to take place in Marrakech from April 7 to 9, 2026, has expanded their upcoming program to include new showcases dedicated to data centers – reflecting their emergence as one of the continent’s fastest-growing segments.

Organizers positioned the sector alongside other high-growth areas of the regional tech ecosystem, such as fintech and future of finance, future mobility, and sports tech.

Tags: AIdata centersGITEX AFRICA
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