South Africa’s advanced infrastructure, strategic location, and growing digital economy make it a prime destination for data centre investments in Africa.
South Africa is well-positioned to benefit from the ongoing boom in demand for data centres. The country has several advantages over its African peers and developed market counterparts.
Standard Bank’s Linda Oniwe said the industry is still in its infancy in Africa, as the increasing use of the Internet and a growing digital economy begin to drive demand for data centres on the continent. For example, Equinix has invested $160 million in its first facility in South Africa, which will offer 1,860m² of rack space and 4MW of IT capacity.
Private equity firms have likewise actively invested in data centre investments across Africa. Notable names include Actis and Helios Investment Partners, who have invested in several data centre projects across the continent. The country has the potential to serve as a hub for the region and capture a large share of the value created from this market.
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