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AWS Bets on Africa’s Fast-Growing Cloud Market

AWS Bets on Africa’s Fast-Growing Cloud Market
Wednesday, 30 April 2025 15:30
  • Amazon Web Services partners with Sonatel to launch new infrastructure in Senegal
  • Africa’s cloud market set to surpass $25 billion by 2029, driven by rising digital demand
  • Microsoft, Google, and local players intensify competition across the continent

Amazon Web Services (AWS) has teamed up with Senegal’s telecom operator Sonatel to deploy ultra-low-latency cloud infrastructure in the country. The deal, signed last week, marks the latest step in the American tech giant’s broader expansion across Africa. AWS had already launched its first African data center region in Cape Town, South Africa, back in 2020.

A subsidiary of Amazon, AWS provides on-demand cloud computing services. Until now, it was active in three African countries—Senegal becomes the fourth. Before this move, AWS had opened a development center in Nairobi, Kenya, in October 2023 to build cloud-based solutions for clients across Africa and beyond. Earlier in the same year, it also rolled out edge infrastructure in Lagos, Nigeria, reducing average data latency there by around 20%.

South Africa remains AWS’s core base on the continent. The company offers its full cloud services suite there—including computing, storage, databases, and AI tools—and operates both a customer support center and a development hub in Cape Town. This infrastructure enables local firms to host data within Africa, supporting compliance with data sovereignty regulations.

Next in line is Morocco. In May 2024, AWS announced plans to roll out infrastructure in the North African country in partnership with Orange Middle East and Africa, as it did in Senegal. Since entering Africa in 2018, AWS has invested 15.6 billion rand (about $841.7 million) in South Africa and pledged another 30.4 billion rand through 2029. Still, no new full-scale data center region has been announced for the continent so far.

Amazon’s Africa push reflects its broader strategy to position AWS as a key driver of growth. In 2024, Amazon generated $638 billion in revenue, with AWS contributing $107.6 billion—roughly 17% of the total. That share carries weight, given that AWS grew 19% year-on-year, outpacing the group’s overall growth of 11%.

Rising demand for cloud services is another reason AWS is deepening its presence on the continent. As digital transformation accelerates, more African companies and government institutions are moving operations online. The start-up scene is expanding fast, and for a company the size of AWS, staying on the sidelines is no longer an option.

Statista forecasts that Africa’s public cloud market will generate $12.56 billion in revenue in 2025 and grow at a compound annual rate of 19.32% to hit $25.46 billion by 2029. Indian research firm 6Wresearch offers an even more bullish outlook, estimating the market will climb from $20 billion in 2025 to about $45 billion by 2031, with a CAGR of 16.4%.

AWS is not alone in betting on Africa. Microsoft Azure, Google Cloud, and Oracle are also ramping up investments to meet soaring demand for digital services.

Microsoft was first to establish a foothold, launching two cloud regions in South Africa as early as 2019. Google Cloud followed in 2022, opening its first African region in Johannesburg. African players like Africa Data Centers, Liquid Intelligent Technologies, and Rack Centre are also gaining ground in the sector.

This intensifying competition is a win for local ecosystems. It boosts the supply of digital infrastructure and raises innovation standards. With more cloud infrastructure available on the continent, sectors such as artificial intelligence, big data analytics, and the Internet of Things (IoT) are set to expand—with use cases ranging from agriculture and health to financial services.

Adoni Conrad Quenum

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