Africa data center construction market seen rising to $4.58 billion by 2031

ResearchAndMarkets forecasts 24.26% annual growth from 2025, driven by cloud, AI and renewable-energy investment across South Africa, Nigeria, Kenya and Egypt, with sustainability, infrastructure and policy support shaping expansion.

Summary

Africa's data center construction market is projected to grow from $1.24 billion in 2025 to nearly $4.58 billion by 2031, according to a ResearchAndMarkets report that forecasts a 24.26% compound annual growth rate from 2025 to 2031. The report says growth is being driven by investment in digital infrastructure, wider adoption of AI and cloud services, and renewable-energy and efficiency initiatives across key markets including South Africa, Nigeria, Kenya and Egypt. It highlights developments such as Kenya's emissions-reduction target, Egypt's renewable-energy and ICT investment plans, Teraco's wind-power purchase agreement in South Africa, and Nigeria's solar and advanced-cooling investments, while identifying South Africa as the leading market and Nigeria and Kenya as fast-rising markets supported by hyperscale projects, submarine cables and digital-economy policies.

Terms & Concepts
  • compound annual growth rate: Average yearly growth rate over a period.
  • power purchase agreement: Long-term contract to buy electricity supply.
  • hyperscale projects: Very large data center developments for massive computing demand.