South Africa Data Center MarketInvestment to Reach USD 3.40 Billion by 2030 - Exclusive Research Report by Arizton

Get Insights on 63 Existing Data Centers Facilities across South Africa
According to Arizton's latest research report, the South Africa data center market [https://www.arizton.com/market-reports/south-africa-data-center-market-investment-analysis] growing at a CAGR of 7.86% during 2024-2030.

To Know More, Click: https://www.arizton.com/market-reports/south-africa-data-center-market-investment-analysis

Report Summary

Market Size (Investment): USD 3.40 Billion (2030)

Market Size (Area): 532 Thousand Sq. Feet (2030)

Market Size (Power Capacity): 118 MW (2030)

CAGR - Investment (2024-2030): 7.86%

Colocation Market Size (Revenue): USD 850 Million (2030)

Historic Year: 2021-2023

Base Year: 2024

Forecast Year: 2025-2030

Market Segmentation: IT Infrastructure, Electrical Infrastructure, Mechanical Infrastructure, Cooling Systems, General Construction, Tier Standard, and Geography

Market Overview

South Africa remains the largest data center market in Africa, supported by a vast consumer base, favorable regulations for local data storage, and a dynamic tech ecosystem. Key cities such as Johannesburg, Cape Town, and Durban are at the forefront of this growth, attracting both regional and global investments. The rise of AI, IoT, and smart city developments is accelerating digital innovation. As of March 2024, South Africa had ten submarine cables, with two more planned. Global players like Google and Meta are investing in undersea cables to boost bandwidth and lower latency, strengthening the country's role as a digital gateway for Africa. Amid ongoing power challenges, data center operators are turning to renewable energy and Power Purchase Agreements (PPAs) to ensure reliable, sustainable operations. Companies such as Teraco (Digital Realty) and Vodacom Business are leading with solar and energy deals. The availability of land and strong renewable potential further attract investors to the market.

Recent Development

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In March 2025, Vantage Data Centers partnered with real estate developer, Attacq to build a data center in Johannesburg. The construction is expected to be completed by Q1 2026. The investment for the construction is $34 million.

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In June 2024, Airtel Telesonic launched its 2Africa submarine cable with length of 45,000 kilometers. The cable has landing points across Africa, Europe, and Asia.

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In November 2024, Open Access Data Centres (OADC), an Africa-based data center company, started a partnership with Reflex, a managed services provider, to drive the AI landscape in South Africa with an AI-ready data center solution.

Digital Transformation Accelerates Data Center Growth in South Africa

South Africa is rapidly advancing its digital transformation, with internet penetration surpassing 74% and over 45 million users by early 2024. This growth is driven by both public and private sector efforts, with digital adoption rising across education, healthcare, commerce, and more. To support this transformation, the Department of Communications and Digital Technologies (DCDT) launched the Digital Economy Master Plan (DEMP), a strategic initiative to enhance infrastructure, build digital skills, promote innovation, and advance e-government and cybersecurity as part of the National Development Plan (NDP).

Social media platforms are also thriving. As of January 2025, the country had 27 million active social identities, with Facebook reaching 35 million users and YouTube 25 million users aged 18 and above. These platforms are now critical tools for digital literacy, business, and entrepreneurship. As digital activity surges, the demand for scalable, secure infrastructure continues to grow, cementing South Africa's position as a leading data center hub in Africa.

Transforming South Africa's Market Through Smart City Innovation

As urban populations rise and digital demands grow, South Africa is embracing smart city development as a core strategy to shape sustainable, connected, and inclusive urban environments. With a population of around 64 million at the start of 2025, and over 70% living in urban areas the country is experiencing a demographic and infrastructural shift that sets the stage for smart transformation. To guide this transformation, the government introduced the National Smart City Framework in 2021, in collaboration with the Council for Scientific and Industrial Research. The framework outlines strategic efforts to develop innovation hubs, deploy smart energy systems, and expand digital connectivity.

Cape Town remains a front-runner in this journey, earning a global ranking of 129th in the IMD Smart City Index 2024 for its progress in using technology to enhance urban living. These initiatives reflect a broader national commitment to building inclusive, digitally empowered communities. With continued investment in digital tools, inclusive policies, and collaborative action between the government, private sector, and local communities, South Africa is poised to transform its cities into forward-looking hubs of innovation, positioning the nation as a rising smart city leader in Africa.

5G Deployment and Its Impact on Data Center Growth in South Africa

As digital change spreads across Africa, South Africa is taking the lead with 5G technology. This next-generation network is helping connect remote areas and powering smart cities, self-driving vehicles, and automated industries. To support these advances, companies are building edge data centers-closer to where people use data. This makes internet services faster and more reliable by reducing delays.

Telecom leaders like Vodacom Business, MTN, and Telkom are expanding 5G networks across the country. Others like Cell C, Comsol, and Rain are also growing their 5G presence.At the same time, companies such as Open Access Data Centres (OADC) and Tarsus Distribution are boosting South Africa's role as a key data center hub by expanding edge infrastructure. Together, these efforts show South Africa's strong focus on building a modern, connected digital future.

The Report Includes the Investment in the Following Areas:

IT Infrastructure

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Server Infrastructure

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Storage Infrastructure

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Network Infrastructure

Electrical Infrastructure

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UPS Systems

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Generators

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Transfer Switches & Switchgear

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PDUs

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Other Electrical Infrastructure

Mechanical Infrastructure

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Cooling Systems

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Racks

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Other Mechanical Infrastructure

Cooling Systems

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CRAC and CRAH Units

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Chillers Units

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Cooling Towers, Condensers, and Dry Coolers

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Other Cooling Units

General Construction

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Core & Shell Development

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Installation & Commissioning Services

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Building & Engineering Design

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Fire Detection & Suppression Systems

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Physical Security

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Data Center Infrastructure Management (DCIM)

Tier Standard

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Tier I & Tier II

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Tier III

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Tier IV

Geography

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Johannesburg

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Other Cities

Vendors

IT Infrastructure Providers

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Atos

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Cisco

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Dell Technologies

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Fujitsu

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Hewlett-Packard Enterprise

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Hitachi Vantara

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Huawei Technologies

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IBM

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Lenovo

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ZTE

Data Center Construction Contractors & Sub-Contractors

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Abbeydale

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AECOM

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Arup

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B2 Architects

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EDS Engineering

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H&MV Engineering

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Ingenium

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ISF Group

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ISG

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LYT Architecture

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MWK Engineering

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Rider Levett Bucknall (RLB)

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Royal HaskoningDHV

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Tri-Star Construction

Support Infrastructure Providers

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ABB

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Alfa Laval

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Caterpillar

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Cummins

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Delta Electronics

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Eaton

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Evapco

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Johnson Controls

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Legrand

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Master Power Technologies

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nVent

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Piller Power Systems

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Rittal

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Rolls Royce

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Schneider Electric

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Siemens

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STULZ

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Vertiv

Data Center Investors

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Africa Data Centres

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Digital Parks Africa

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Equinix

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NTT DATA

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Open Access Data Centres (OADC)

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Teraco (Digital Realty)

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Microsoft

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Vantage Data Centers

New Entrants

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Paratus Namibia

Why should you buy this Research?

This research provides comprehensive insights into the South Africa data center market, covering market size, investment forecasts, power capacity, and colocation revenue. It includes a detailed analysis of 53 existing and 10 upcoming data centers across 27+ locations, along with trends in wholesale and retail colocation pricing. The report breaks down investments by IT infrastructure, power, cooling, and construction services, highlighting key growth drivers, challenges, and opportunities. Additionally, it features profiles of leading industry players and a transparent methodology with thorough demand-supply analysis to support informed decision making. Request for Free Sample to get a glance of the report now:https://www.arizton.com/market-reports/south-africa-data-center-market-investment-analysis

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Key Questions Answered in the Report:

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How big is the South Africa data center market?

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What is the growth rate of the South Africa data center market?

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How much MW of power capacity will be added across South Africa during 2025-2030?

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Which all cities are included in the South Africa center market report?

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What factors are driving the South Africa data center market?

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