By: Energy capital & power

Africa’s accelerating energy transition is driving a parallel transformation in the generation, management, and consumption of power. The strategic panel “Investing in Digital Infrastructure” at the 2026 Invest in African Energy (IAE) Forum in Paris will examine the capital required to build resilient, high-capacity digital networks. These networks are considered the backbone for industrial-scale AI deployment and the next phase of the continent’s energy-sector evolution.

Digital infrastructure—encompassing fiber networks, data centers, smart-grid platforms, and edge computing—has become a foundational pillar of modern energy systems. Across Africa, investors and governments increasingly recognize that reliable connectivity and advanced digital platforms are indispensable for integrating renewables, managing distributed generation, and enabling predictive analytics that improve grid stability and lower consumer costs.

Real-world initiatives already demonstrate how digital technologies are linked directly to energy transformation. In Senegal, Kenya, and other markets, the Digital Energy Challenge—led by Agence Française de Développement with EU support—is backing startups and technology providers that deploy digital solutions to bolster grid performance, expand access, and accelerate decarbonization. The 2025 edition recognized five projects developing AI-driven demand-response tools, IoT-enabled remote monitoring for solar assets, and software to optimize grid operations, illustrating measurable connections between digital innovation and energy outcomes.

Infrastructure at the intersection of energy and digital connectivity continues to expand. Data-center development, such as the PAIX Data Centers project in Dakar scheduled for 2026, is strengthening the backbone for cloud services and advanced computing in West Africa. This builds on earlier investments like IXAfrica’s Tier III-certified NBOX1 facility in Nairobi, which supports AI-intensive workloads and is designed to scale with demand.

At the policy level, governments are embedding digital growth into national development strategies. Ethiopia’s Digital Ethiopia 2030 blueprint, launched in late 2025, outlines ambitious targets for infrastructure expansion, inclusive digital services, and AI readiness, aligning energy-sector modernization with broader economic digitalization.

Collectively, these efforts mark a shift in how energy systems are conceived—moving beyond hardware toward digitally enabled, data-driven platforms that enhance performance, reduce operational costs, and support renewable integration at scale. Smart grids leverage real-time data to balance demand and supply, improving power quality and reducing reliance on costly reserves. AI tools can predict failures, optimize maintenance, and dynamically adjust grid configurations—capabilities that are increasingly critical as electrification expands and distributed energy resources multiply.

Nevertheless, financing needs remain substantial. Africa’s share of global data-center capacity is still limited relative to demand, and connectivity gaps persist in rural and peri-urban regions. Mobilizing capital will require blended financing, de-risking mechanisms, and regulatory clarity to encourage private participation alongside development finance. Equally important are frameworks governing open access, cybersecurity, and data sovereignty, which build investor confidence to scale digital-energy projects.

The IAE 2026 panel on Investing in Digital Infrastructure aims to advance this conversation from discussion to deployment. Leaders from finance, policy, and technology will examine how to scale infrastructure that supports AI-enabled optimization of power systems, strengthens grid resilience, and accelerates the continent’s energy transition. The session will highlight pathways for investors to identify bankable opportunities in digital energy platforms, data-center developments, smart-grid technologies, and connectivity initiatives that underpin next-generation power ecosystems.