In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Africa Data Center Market Report. The Africa data center market by investment is expected to grow at a CAGR of approx.
New York, April 16, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Data Center Market in Africa - Industry Outlook and Forecast 2021-2026" - https://www.reportlinker.com/p05822887/?utm_source=GNW
15% during the period 2020–2026.
The Africa data center market size by investment was valued at USD 2 billion in 2020 and is expected to USD 5 billion by 2026, growing at a CAGR of 15% during 2021-2026. The data center market expects to observe growth because of the flurry of factors – renewable power availability, smart city initiatives, and increased support for the digital economy. Egypt, South Africa, Kenya, Morocco, and Ethiopia are actively working toward improving the share of renewable energy in the region’s electricity generation. Africa is an emerging leader in microgrid capacity. Grid-connected, on-site energy generation or storage plants help data centers control power costs more efficiently by saving on peak demand costs charged by traditional grid facilities. Both colocation and enterprise operators invest heavily in adopting renewable energy sources to power data centers.
The following factors are likely to contribute to the growth of the Africa data center market during the forecast period:
• Availability of Renewable Energy
• Government Support boosting Digital Economy
• Increase in Adoption of All-Flash Storage Solutions
• Increased Investment in Fiber Connectivity
The study considers the present scenario of the Africa data center market and its market dynamics for 2020?2026. It covers a detailed overview of several market growth enablers, restraints, and trends. The report offers both the demand and supply aspects of the market. It profiles and examines leading companies and other prominent ones operating in the market.
AFRICA DATA CENTER MARKET SEGMENTATION
The Africa IT infrastructure market expects to reach approx. USD 4 billion by 2026. The growth in data generation in Africa is fueling the demand for fast-processing efficient servers. The demand for build-to-suit infrastructure is growing to support specific applications. Several segments such as BFSI, healthcare, transportation and logistics, education, and heavy industries adopt advanced server systems for efficient services.
The unreliable power grid connectivity increases the demand for power backup sources. UPS and generator systems are expected to grow due to the increased construction of large and mega data center facilities. The Kenya data center market has witnessed the installation of energy-efficient power infrastructure. Most facilities are of Tier III standards and are adopting power redundancy of N+1 or 2N to manage power grid instability. Colocation service providers are likely to emerge as contributors to the lithium-ion UPS solutions market. Vendors are continuously offering innovative UPS solutions to boost efficiency and reduce cost. The construction of extensive facilities across Africa is likely to boost the generators market. The growing complexity of data center infrastructure is driving the demand for automated switchgear technology. Medium- and high-voltage switchgear are more likely to be adopted than low-voltage switchgear. The demand for intelligent PDUs among colocation end-users is growing as there is an increasing need to meter and monitor rack power consumption.
Data center facilities operating in the African region mainly adopt chillers and precision air cooling. The adoption of air-based cooling (free cooling chillers) is likely to gain traction as certain African countries experience cold winter seasons. South Africa is likely to adopt free cooling chillers or evaporative coolers. The cooling systems market depends on the construction of mega and hyperscale facilities, primarily of 10 MW capacity. While several smaller facilities in Africa use DX-based CRAC units, medium and large data centers are installing CRAH units. Also, the implementation of air-cooled CRAC systems with cooling units that use refrigerants or glycol-based cooling is expected to grow during the forecast period. Data centers in Morocco have witnessed the adoption of precision cooling systems, chilled water-cooling systems, and free air-cooling systems.
Most colocation facilities are funded by enterprise and government agencies; however, the actual investment in greenfield projects is low. Government initiatives to offer tax incentives expect to fuel general construction services during the forecast period. However, the shortage of skilled workforce construction and operational benefits is the major reason organizations select modular providers to perform installation and operation services. The increasing OPEX is likely to boost the implementation of DCIM solutions. The rapid growth in colocation data centers will drive investments in physical security systems in the African market. In South Africa, most colocation facilities have installed physical security solutions, ranging from perimeters to racks guarded via CCTV cameras and biometric systems. Companies have also adopted DCIM solutions that enable remote monitoring of data center operations. Data center operators in Kenya use several security systems such as biometric access systems, perimeter fencing, and CCTV surveillance solutions.
In 2020, the Africa data center market witnessed Tier III facilities’ dominance, especially for colocation services. 10 out of the 11 tier III facilities developed were colocation data centers in 2020. The trend expects to continue during the forecast period, with several operators expecting to shift to Tier IV facilities due to the growth in rack power densities and increase in critical data center applications during the forecast period. Most new facilities are designed to be of Tier III standards with a minimum of N+1 redundancy. They can be reconfigured with up to 2N+2 redundancy with the incorporation of flexible data center designs. Most facilities in Kenya are built according to Tier III standards with standard redundancy of N+1 or N+N for support infrastructure, including cooling systems. Similarly, facilities in South Africa are designed to be tier III standards, which are flexible to be converted into Tier IV facilities.
By IT Infrastructure
By Electrical Infrastructure
• UPS Systems
• Transfer Switches and Switchgears
• Other Electrical Infrastructures
By Mechanical Infrastructure
• Cooling Systems
o CRAC & CRAH Units
o Chiller Units
o Cooling Towers, Dry Coolers, & Condensers
o Other Cooling Units
• Others Mechanical Infrastructure
By Cooling Technique
• Air-based Cooling Technique
• Liquid-based Cooling Technique
By General Construction
• Core and Shell Development
• Installation and Commissioning Services
• Engineering and Building Designs
• Physical Security
By Tier Standards
• Tier I & II
• Tier III
• Tier IV
INSIGHTS BY GEOGRAPHY
The South Africa data center market share is witnessing an increased adoption of cloud-based solutions among enterprises and is rapidly emerging as a center for public and private cloud hosting. Cape Town and Johannesburg are the significant locations preferred for data center development. Manufacturing, financial services, and healthcare sectors are among the major contributors to the data center investment. The South Africa data center market is increasingly adopting cloud technology. Submarine cable connectivity is playing a critical role in the development of the South African data center market. Also, investments in submarine cable connectivity projects connecting South Africa with Asia have increased in recent years. The market expects to witness steady growth over the next few years because of the high internet penetration and growth of big data, IoT, and artificial intelligence technology.
o South Africa
o Other Countries
INSIGHTS BY VENDORS
The Africa data center market consists of several IT, electrical, and mechanical service providers. Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies are a few major IT infrastructure providers in Africa. The revenue share of server infrastructure declined slightly in Q1 2020 than Q4 2019 due to the eruption of the COVID-19 pandemic, causing disruptions in the supply chain. The procurement of energy-efficient power infrastructure solutions is likely to drive several vendors to the African region. Varied requirements are prompting vendors to develop innovative products that reduce OPEX. ABB, Eaton, Legrand, Schneider Electric, and Vertiv Group are the leading UPS and rack PDU infrastructure players. Cummins and Caterpillar have a strong presence in the market.
Key Data Center Critical (IT) Infrastructure Providers
• Arista Networks
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• Juniper Networks
Key Data Center Support Infrastructure Providers
• Rolls-Royce Power Systems
• Schneider Electric
• Vertiv Group
Key Data Center Investors
• Africa Data Centres
• Amazon Web Services (AWS)
• Internet Technologies Angola (ITA)
• MainOne (MDXi)
• Raxio Group
• Raya Data Center
• Teraco Data Environments
Key Construction Constructors
• Arup Group
• Edarat Group
• Vantage Data Centers
KEY QUESTIONS ANSWERED:
1. How big is the Africa data center market?
2. How many new data centers emerged in the Africa region in 2020?
3. What is the market size for data center racks in Africa?
4. What is the growth rate of the data center market in Nigeria?
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