As with all things in life, there’s initial fanfare which eventually tapers into a more realistic, even somewhat sobering outlook. It’s human nature after all and unsurprisingly the global conversation around AI has moved from exuberant hype to practical implementation and differentiation.
In Africa, the current AI momentum is not driven by breakthroughs like ChatGPT but rather a more fundamental need, building a resilient digital infrastructure that addresses the real-world challenges of the continent’s communities.
Reinforcing this goal is the African Union’s commitment, which saw it endorsing the Continental AI Strategy during its 45th Ordinary Session in Accra, Ghana in July 2024. The strategy underscores Africa’s commitment to an Africa-centric, development-focused approach to AI, promoting ethical, responsible and equitable practices across the continent.
It’s well-known that globally, AI investment continues to undergo reshuffling. We’re seeing investors distinguishing between infrastructure-heavy players, building long-term AI capabilities and agile adopters focusing on specific, lightweight use cases. While some markets are recalibrating their expectations, Africa’s data centre ecosystem is gaining strength, not in spite of this trend, but because of it.
Across the continent, data centres are being established not just for cutting-edge AI experimentation but to serve immediate, community-based needs like powering local economies, enabling digital inclusion, and bridging the persistent divide between urban and rural access to technology.
Africa’s digital priorities
Africa’s data centre growth is aligned with the continent’s broader digital transformation goals. With vast rural regions and youthful, increasingly mobile-first populations, the demand for cloud computing, edge processing and reliable data storage is rising fast.
These hyperscale facilities are not merely digital real estate, they’re the new enablers of socioeconomic progress. They support the rollout of government e-services, mobile banking platforms for the unbanked, remote education initiatives, telehealth and SME digitisation. These are the cornerstones of a digitally empowered Africa.
The use of AI on the continent is therefore pragmatic. While data-heavy generative tools may be resource-intensive, Africa’s innovation focus lies in practical applications: AI for fraud detection in mobile money, crop monitoring in agriculture, or intelligent routing for logistics in dense urban hubs.
Furthermore, the continent is not replacing humans with machines. AI is an enabler, giving way to industries such as energy, mining, healthcare and agriculture that require a hybrid of man and machine.
Looking at countries like South Africa, AI regulation is still evolving and national readiness needs to catch up with available capacity. The National AI Policy Framework National AI Policy Framework introduced in late 2024 lays the foundation for future legislation. And whilst not yet binding it does signal a clear intent to move toward structured governance of AI technologies.
However, this not a deterrent but rather an indication that AI cannot be adopted just for the sake of. And this is where data centres step into the limelight, offering the foundation for sustainable and responsible AI.
Building the infrastructure
There’s no doubt that African stakeholders are focused on something more fundamental, making sure every citizen, whether in Nairobi, Accra or rural Limpopo, has access to the tools and technologies that can change lives.
This is why Africa’s data centre investment is exciting and studies confirm this sentiment. The continent’s data centre market is anticipated to reach $10 billion by 2028, driven by increasing Internet penetration, enterprise cloud adoption, and the expansion of AI-driven services.
South Africa is expected to nearly double its data centre capacity over the next five years, driven by booming demand for cloud services, AI infrastructure and digital transformation in all sectors. Across the continent, the market is projected to grow at over 12% CAGR, with countries like Nigeria, Kenya and Egypt also emerging as key hubs.
The strategic importance of data centres in Africa extends beyond commercial growth; it ensures that the continent’s businesses and governments retain control over their data while driving digital inclusion.
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