Africa is experiencing a rapid expansion of data-centre infrastructure as growing demand for cloud computing, artificial intelligence (AI), digital services and data storage drives new investment across the continent.
Industry forecasts indicate that investment in Africa’s data-centre market could reach $8.76 billion by 2031, up from an estimated $3.64 billion in 2025, representing an annual growth rate of about 15.76 percent. South Africa, Nigeria, Kenya and Egypt are emerging as some of the continent’s key data-centre markets.
The expansion reflects the increasing importance of reliable digital infrastructure to Africa’s developing digital economy. Businesses, financial institutions, governments and technology companies are increasingly relying on cloud platforms and locally hosted computing infrastructure to deliver digital services.
South Africa remains one of the continent’s largest data-centre hubs, while Nairobi has become a major East African location for new facilities. In Nigeria, Lagos continues to attract significant data-centre development, supported by growing cloud adoption, connectivity improvements and demand for digital services.
Nigeria’s data-centre market is also projected to grow strongly. Estimates suggest that the market could increase from about $374 million in 2026 to more than $782 million by 2031, driven by cloud adoption, submarine cable capacity, data-residency requirements and the expansion of digital services.
The rise of AI is adding another layer of demand. AI applications require significant computing power and data-processing capacity, increasing the need for modern facilities capable of supporting high-performance computing and cloud infrastructure.
However, the growth also presents major challenges. Data centres require reliable and affordable electricity, while many African countries continue to face power-supply constraints. Industry experts have warned that the continent must develop electricity infrastructure alongside digital infrastructure if it is to fully benefit from the AI and cloud-computing boom.
Sustainability is also becoming an important consideration. New projects are increasingly exploring renewable energy sources and more efficient cooling systems to reduce operational costs and environmental impact. Recent industry forecasts point to growing interest in solar and wind energy for data-centre operations, including in Nigeria.
Beyond infrastructure, the expansion could create opportunities for African economies through job creation, technology investment, improved digital services and stronger local hosting capacity.
As demand for AI, cloud computing, fintech, e-commerce and other digital services continues to rise, Africa’s data-centre expansion is becoming a critical component of the continent’s digital transformation. The ability to combine investment in computing infrastructure with reliable power, connectivity, skills and sustainable energy will determine how much value African countries can capture from the next phase of the digital economy.
