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Posted By OrePulse
Published: 02 Jan, 2026 08:42

Africa’s Data Centre Boom Could Drive Investment in Power Sector, Says African Energy Chamber

By: Utilities Middle east

Africa’s rapidly growing demand for digital services is creating opportunities for investment in the continent’s power infrastructure, according to NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).

Speaking in a commentary for the AEC, Ayuk highlighted that while electricity access remains inconsistent across many African countries, mobile and internet usage are expanding at exceptional rates.

The GSMA Mobile Economy Report 2023 estimates that smartphone adoption in sub-Saharan Africa will rise from 51% in 2022 to 87% by 2030, with data consumption per user expected to nearly quadruple over the same period.

“Every smartphone and digital application adds to computing load, and energy-intensive technologies such as artificial intelligence are further increasing demand,” Ayuk said.

According to Ayuk and the AEC’s State of African Energy: 2026 Outlook Report, Africa currently hosts 223 data centres across 38 countries, less than 0.02% of the global total. South Africa, Kenya, and Nigeria account for 41% of installed capacity, highlighting the concentration of digital infrastructure in a few key markets.

The report projects the African data centre market, valued at USD 3.49 billion in 2024, could reach USD 6.81 billion by 2030, growing at an 11.79% compound annual rate. Africa’s data centre electricity demand is expected to grow at 9% annually, reaching 2 gigawatts by 2030.

Ayuk emphasised that reliable electricity remains a major challenge. For example, Nigeria’s 17 data centres, which collectively require around 137 megawatts, operate in a country where the national grid often provides only a few hours of power per day, forcing operators to rely on diesel generators.

He added that the predictable energy demand from data centres could encourage investment in generation and grid upgrades, supporting broader electrification and infrastructure development.

Some countries are already leveraging renewable energy to meet digital demand: Kenya’s grid is more than 60% renewable, and South Africa has integrated solar power into new data centre projects. North African countries such as Egypt and Morocco are also positioning themselves as regional hubs due to favourable infrastructure and connectivity.

Ayuk also noted that natural gas could serve as a flexible “bridge fuel” to support energy reliability where renewable sources fluctuate, helping countries balance environmental and economic priorities.

The AEC’s analysis concludes that developing local data centre capacity could provide a strategic avenue for governments to strengthen infrastructure, grow the economy, and enhance national security, while meeting rising digital demand.

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