South Africa is one of the largest data center markets in Africa. The country already hosts some fifty local and international operators but is also attracting new investments. 

Africa Data Centres (ADC) announced, Wednesday (June 15), its second 20-megawatt data center in Cape Town. When completed, the data center will help meet the high demand for digital services in South Africa.  

Located on the northern outskirts of downtown Cape Town, the new facility will span over  15,000 square meters and host eight data rooms. The project is currently in its design phase with construction works expected to begin in the fourth quarter of this year and be completed by late 2023. 

Once completed, the new infrastructure is expected to enable ADC to more effectively meet the high demand for digital services in the local market. It is also expected to create numerous jobs in a wide range of sectors.   

According to Tesh Durvasula, managing director of Africa Data Centres, the construction of the new data center is part of the South African chapter of the company's African expansion strategy. It comes a week after the company announced the construction of a new facility in Accra, Ghana. Africa Data Centres wants to capitalize on the acceleration of digital transformation in Africa. In September 2021, it announced a US$500 million investment plan to build 10 data centers in a dozen African countries within two years.  

According to the report "South Africa Data Center Market - Investment Analysis & Growth Opportunities 2021-2026," investment in the South African data center market will reach US$3 billion by 2026, up from US$1.31 billion in 2020. This represents a 15.17% compound annual growth rate over  2021-2026. In addition, cloud adoption is expected to grow by up to 25 percent annually and generate up to US$1.5 billion in revenue by 2024.

Isaac K. Kassouwi