African data center sector primed for 17.5% growth – ADCA
July 8th 2025
The outlook for the African data center market remains broadly positive with an average expansion rate of 17.5% expected over the next 12 months.
That is according to a recent Insider Survey conducted by the Africa Data Centres Association (ADCA) – conducted with analytical support from consultancy firm Rising Advisory and sponsored by data center services company Stellarix.
The survey was based on responses from companies operating throughout the continent, including data center operators, equipment manufacturers, contractors and consultants.
“On average, industry leaders estimate market progression at 17.5%, reflecting cautious optimism shaped by persistent infrastructure, policy, and investment constraints. Growth is expected, but within a more calibrated and operationally aware framework,” the survey report said.
Almost 23% of those surveyed expect a strong expansion in the sector over the next year while 71% predicted moderate growth, which ADCA said points to a steady, rather than accelerated, trajectory.
No respondents expected any form of decline, underscoring continued confidence in the sector’s fundamentals, ADCA said.
Respondents noted that the momentum is primarily driven by the accelerating digitization of African economies, rather than by emerging technologies.
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“This survey highlights a growing consensus: data infrastructure has become a cornerstone of economic development, it is not peripheral to development, it is foundational,” said Faith Waithaka, chairperson of ADCA.
Over 77% of companies plan to make significant investments within the next 12 months, and respondents rated the profitability of the African data center market at an average of 3.3 out of 5.
The business climate is seen as favorable by more than 80% of respondents, despite persistent barriers such as access to reliable energy, financing issues and regulatory constraints.
“The sector is progressing, but with greater maturity: the priority is to build solid, collaborative, and sustainable models, rooted in Africa’s operational realities,” added Paul-François Cattier, managing director of ADCA.
AI trend gains steam
The survey found that the adoption of artificial intelligence (AI) across Africa’s data center landscape is gaining momentum, though still in an early phase.
According to survey responses, 36% of participants have already integrated AI-capable systems – 26% through dedicated AI-ready racks, and another 10% via alternative solutions such as liquid cooling, high-performance computing, and AI-optimized uninterrupted power supplies (UPS).
An additional 35% of respondents plan to implement AI-ready technologies within the next six to twelve months, signaling a measured but active transition toward higher-density, AI-driven infrastructure.
Growing focus on sustainability and skills
Skills development emerged as a central issue and 61.3% of surveyed companies reported investing in in-house training and certification programs to meet specific operational needs.
Nearly 39% of respondents also cited difficulty retaining skilled staff due to better opportunities abroad, while 22.6% point to the lack of specialized training programs in the region.
“These trends reflect both the global competitiveness of African talent and the urgent need for practical, industry-aligned education pathways. High competition from international employers further intensifies pressure on local firms to attract and retain qualified professionals,” the report said.
IT specialist holding a laptop walking between data center racks.
Nearly 39% of respondents cited difficulty retaining skilled staff due to better opportunities outside of Africa. (Source: Image by DC Studio on Freepik)
When it came to Environmental, Social and Governance (ESG) performance, industry players gave an average rating of 5.87 out of 10, reflecting progress that remains cautious.
The main focus remains on tangible and immediate gains, particularly in terms of energy efficiency.
Over 74% of respondents cited energy efficiency as their primary ESG criterion, well ahead of the use of renewable energy, at 22.6%.
AfCFTA progress remains slow
While many believe the African Continental Free Trade Area (AfCFTA) holds great promise, its perceived impact on the carrier-neutral data center market remains limited at this stage.
Over 61% of respondents believe AfCFTA will have no meaningful effect on the sector. The report’s authors said this subdued outlook may reflect the early stage of implementation and the lack of tangible outcomes.
Among those that did anticipate benefits, the top expectations are centered around greater investment and market expansion (24.4%) and harmonized regulations and policies (24.4%), both seen as critical enablers of regional scale.
Increased cross-border data traffic (19.5%) and lower equipment costs (14.6%) also featured prominently.
However, ADCA said that the overall sentiment suggests that unless AfCFTA delivers concrete reforms targeting the digital and infrastructure economy, including regulatory alignment and trade facilitation, its potential to unlock growth in the data center sector will remain largely theoretical.
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