Africa’s race to build a competitive digital economy is accelerating, with data centers emerging as the backbone of the continent’s technological transformation. A new study by the Dubai World Trade Centre (DWTC) — the organizer behind GITEX Africa — highlights both the opportunities and the persistent infrastructure bottlenecks shaping this fast-growing industry.
Across the continent, governments and private operators are pouring investments into data infrastructure to meet soaring demand from cloud services, artificial intelligence (AI), and digital finance platforms. These facilities now form the nerve center of Africa’s digital economy — powering everything from e-commerce to fintech innovation.
Data Center Market Set to Double by 2030
According to market projections, the African data center market will surge from $3.49 billion in 2024 to $6.81 billion by 2030, growing at an annual rate of 11.8%. This expansion is tightly linked to the rise of artificial intelligence, with Africa’s AI market expected to climb from $4.5 billion in 2025 to over $16.5 billion by 2030.
Industry leaders emphasize that AI cannot scale without reliable, high-capacity data infrastructure. “Without dependable power and affordable connectivity, facilities struggle to deliver real economic value,” warned Dr. Krishnan Ranganath, Regional Executive for West Africa at Africa Data Centres.
Power and Connectivity Bottlenecks Undermine Progress
Despite major investments, Africa’s ageing transmission networks and unstable electricity gridscontinue to slow data center deployment. While power generation exists in many countries, inconsistent delivery and outdated grid infrastructure limit operational reliability for large-scale facilities.
Connectivity poses another major obstacle. High bandwidth costs and limited terrestrial fiber networks remain barriers to performance and scalability, reducing competitiveness on a global level.
Dr. Ranganath argues that lasting progress depends on strengthening infrastructure from the ground up. > “Every country requires a robust network — we must fix the fundamentals so that in five to ten years, African infrastructure can converge,” he told DWTC.
Regulatory Fragmentation Slows Continental Integration
Africa’s regulatory fragmentation adds another layer of complexity. Varied data localization laws, sovereignty rules, and compliance standards force data center operators to adapt policies country by country, driving up costs and slowing expansion.
This lack of harmonization also affects foreign investment, as inconsistent regulations and uneven market maturity discourage international investors from pursuing large-scale regional projects. Industry experts agree that data centers alone cannot trigger digital transformation — progress also requires reliable energy, strong connectivity, and digital skills development.
Countries Lead with Strategic Digital Investments
Despite these challenges, Morocco, Kenya, Egypt, Nigeria, and South Africa are making strong headway, each advancing national roadmaps to attract global cloud and tech investors.
The momentum is part of a broader digital expansion, with Africa’s cloud computing market expected to reach $45 billion by 2031 and fintech projected to hit $65 billion by 2030.
In Morocco, the government has recently launched the “Maroc IA 2030” strategy — a national roadmap focused on AI governance, digital sovereignty, and skills development. The initiative, branded AI Made in Morocco, includes a network of Jazari Institutes to promote applied research and AI excellence across the country.
A $1.5 Trillion Digital Future Within Reach
Africa’s digital economy could reach $1.5 trillion by 2030, but experts say achieving that potential hinges on coordinated investment, regional cooperation, and policy alignment — not just standalone infrastructure projects.
DWTC’s study arrives as attention turns to upcoming industry events such as GITEX Africa 2026, set for April 7–9 in Marrakech. The exhibition will feature an expanded focus on data centers, alongside key growth sectors like fintech, future mobility, and sports tech — underscoring the continent’s ambition to become a global player in digital innovation.
