• McKinsey expects African data center needs to rise 3.5 to 5.5 times by 2030.

• Capacity could reach up to 2.2 GW, requiring $10–20 billion in investment.

• Growth driven by AI adoption, cloud migration, and public-sector digitalization.

Africa’s demand for data centers is expected to increase by 3.5 to 5.5 times its current level by 2030, driven by faster digitalization in the public and private sectors and by the rising use of data-intensive technologies such as artificial intelligence and cloud computing. The figures are from a report released on Monday, November 24, by strategy consulting firm McKinsey & Company.

Titled “Building data centers for Africa's unique market dynamics,” the report notes that data center capacity on the continent should rise from about 0.4 gigawatts today to between 1.5 and 2.2 gigawatts by the end of the decade. This expansion will require $10–20 billion in new investment and could generate $20–30 billion in revenue across the value chain by 2030, especially since Africa starts from a very low base.

The capacities of existing facilities in the five leading markets (Egypt, Kenya, Morocco, Nigeria, and South Africa) remain far below those of France alone, which had several centers totaling around 800 megawatts in 2024. This gap highlights both the scale of the challenge and the continent’s untapped potential.

AI integration across sectors will be a major driver of demand. While about 40 % of African companies say they are already testing AI, wider deployment could generate $60–100 billion in value, particularly in retail, telecommunications, consumer goods, banking, and mining.

Demand will also be supported by the success of government-led digitalization programs. Many African states are moving to digitize manual processes and data systems, creating strong needs for local storage, computing power, and network capacity.

For example, the World Bank’s “Digital Economy for Africa” (DE4A) initiative has supported about 70 digitalization projects in 37 countries since 2019, focusing on digital ID, online public services, and interoperability. Similar efforts are gaining ground, such as Kenya’s eCitizen portal, which already has 13.5 million users.

The shift to cloud computing will further accelerate the need for data centers. Large African companies expect an increase of more than 18 percentage points in cloud workloads by the end of the decade. Combined with broader smartphone adoption and a young, tech-savvy population, this trend is pushing steady demand for computing, storage, and connectivity.

Cloud adoption is strongest in technology, media, and telecommunications, where about 83 % of workloads are already cloud-based and cloud-native redesign is advancing quickly. There is also significant room for growth in financial services, where around 56 % of workloads are currently in the cloud.

Small, modular, and scalable: Africa’s winning model

Because demand remains fragmented across countries, the most efficient model in Africa is the small, modular, and scalable colocation data center. McKinsey expects capacity to be concentrated in small (1–20 MW) and medium-size (20–50 MW) facilities by 2030. Globally, two-thirds of new centers will be large (50–500 MW), but in Africa, two-thirds will fall in the small and medium categories.

The report also notes that companies entering the African market will face challenges related to energy supply, connectivity, and financing. On the energy side, operators will need to combine grid-connected power purchase agreements, contracts with independent power producers, and self-generation.

Robust connectivity, both submarine and terrestrial, remains a major obstacle in many markets. While the continent is now served by around 75 submarine cables, distribution is uneven. Many countries lack adequate terrestrial fiber or rely on microwave links, limiting capacity and increasing latency.

Financing could also be difficult to mobilize in several African markets because of the limited presence of anchor tenants and lower utilization rates compared to other regions, McKinsey warns.

Walid Kéfi