With traditional data centre hubs like Amsterdam and Dublin facing acute land and capacity constraints, and restrictive policies for data centre development, XSPs are beginning to expand into different regions, presenting an opportunity for Africa. Craig Blankers at WSP Africa, Matone Ditlhake at Corridor Africa, Ghassan Azzi at Western Digital, share their perspectives.
Data centres undoubtedly represent enormous opportunity in Africa as demand for seamless network connectivity continues to rise on the continent and around the world. Advances in engineering, technology and sustainability make it possible to overcome some of the historical barriers to growth and capitalise on this trend.
On the African continent, urbanisation, population growth and the ongoing expansion of 3G, 4G and 5G networks are major drivers of the data centre boom, as more people connect to the Internet. Globally, the speed of change in the industry and the catalytic advances in Artificial Intelligence, and other high-density technologies demand a vast amount of processing power to run, and that is changing how data centres are designed and built.
Revenue in Africa’s data centre market is projected to reach US$6.47 billion within this year and is expected to show a compound annual growth rate, CAGR of 7.18% by 2029, resulting in a market volume of US$9.15 billion. Though impressive, this growth is minimal when compared to global market predictions of 8.45% CAGR and a market volume of US$624.10 billion by 2029. Yet, according to the Africa Data Centres Association, Africa alone needs 1000MW and 700 facilities to meet growing demand. And investment is starting to come through.
According to Craig Blankers, Director Acting Sector Lead, WSP Africa, factors including limited infrastructure, slow digital transformation, and lack of awareness about the benefits of data centres, and advances in engineering and technology, play a role in these slow growth predictions.
A data centre that is built around the core principles of sustainability and being locally fit-for-purpose is not only modern in today’s context, but future-proof by design. Data centre owners looking to invest in Africa are largely drawn by the geographical space available and the enormous potential of the continent’s market.
Building for sustainability not only makes good operational business sense, but it also aligns with responsible corporate citizenship and meets environmental, social, and governance, ESG best practices.
Despite recent investments in data centre infrastructure in Sub-Saharan Africa, much of the continent’s capacity is still in South Africa, where the market comprises of 408MW. Nigeria and Egypt follow with 140MW and 118MW, respectively. Kenya is making strides as well, with 79MW, while Morocco closes out the top five with 65MW of supply.
With traditional data centre hubs like Amsterdam and Dublin now facing acute land and capacity constraints, and increasingly restrictive policies for data centres development, hyperscalers and operators are beginning to expand into different regions, presenting an opportunity for African locations like these.
The reliability of municipal power supplies is still a big challenge. The higher computing power needed – and therefore more cooling power needed – by facilities running AI demands reliable energy supply, not to mention flexible innovative solutions for reliable operations and enhanced performance.
Many African countries have unstable, coal-intensive grids and strategic power outages intended to reduce peak demand. Because data centres need power to stay operational 24x7x365, reliance on onsite back-up generation is often the expensive norm.
More public and private sector investment in renewable and sustainable energy technologies, driven in many cases by the adoption of green economy policies and growth strategies, is beginning to have a positive impact on the availability of reliable energy. Solutions such as onsite solar power plants and energy wheeling are gaining traction, enabling data centres to be powered by solar facilities built nearby.
With Africa on the frontline of the global water crisis, and as water conservation policies become global mandates to tackle it, water and data centre design experts are working with hyperscale and colocation data centre operators to minimise freshwater use.
From rainwater collection, onsite treatment plants and recycling local wastewater, to reusing cooling tower runoff and converting waste heat back into useable resources, advances in engineering are meeting the challenge of efficient and responsible water use.
Modular data centres and free cooling
Modular data centres are another key strategy in addressing infrastructure challenges. These designs involve prefabricated units that can be quickly deployed and scaled according to demand. The modular approach offers several advantages, including reduced construction times, lower costs, and the ability to adapt to changing requirements.
In South Africa, where the demand for data centres is rapidly increasing, modular designs provide a flexible solution that can be tailored to various locations and needs. For instance, in areas with limited infrastructure, modular data centres can be installed to serve immediate needs while long-term infrastructure development takes place.
According to Matone Ditlhake, CEO Corridor Africa, this approach not only alleviates pressure on existing resources but also supports the rapid deployment of critical digital infrastructure, he adds.
Cooling systems are a critical part of data centre operations, accounting for a sizable portion of energy consumption. As data centres expand, the need for efficient cooling solutions becomes even more pressing. Advanced cooling technologies, such as liquid cooling and free cooling, are appearing as key solutions to reduce energy usage and enhance sustainability.
Liquid cooling, which involves circulating a liquid coolant through the data centre to absorb heat, is particularly effective in reducing the energy required for cooling. Free cooling, which utilises ambient air or water from natural sources, offers another energy-efficient choice. Both technologies not only lower operating costs but also contribute to the overall sustainability of data centre operations.
As the data centre industry continues to grow, the adoption of sustainable strategies is essential to overcoming infrastructure challenges and ensuring long-term viability. By deploying renewable energy, modular designs, and advanced cooling technologies, data centres can meet the rising demand for digital services while minimising their environmental impact.
Another significant shift in the data centre industry is the move towards renewable energy sources. Traditional data centres have long been associated with high energy consumption, often relying on non-renewable resources that contribute to carbon emissions. Integration of renewable energy, such as solar, wind, and hydropower, into data centre operations is helping to reduce the environmental footprint.
Africa with its abundant sunshine and wind resources, is well-positioned to capitalise on renewable energy for data centres. By investing in solar farms and wind turbines, data centres can not only ensure a reliable power supply but also contribute to the country’s renewable energy targets.
Data storage solutions
Africa is in the throes of a digital revolution, with South Africa at the forefront of this transformative wave. The digital economy in Africa has been driven by explosive growth in Internet penetration and a growing technology-savvy population. According to a Gallup’s survey, Internet access in South Africa rose from 52% in 2019 to 66% in 2021, while in Nigeria, Internet access increased from 26% in 2019 to 36% in 2021.
According to Ghassan Azzi, Sales Director for Africa, Western Digital, as this transformation continues, a crucial element is data storage, with solutions like solid-state drives, SSDs and hard disk drives, HDDs being essential for supporting digital services. These technologies enable businesses across the continent to effectively utilise data, which could drive economic growth and development.
Digital services generate vast amounts of data daily, presenting both opportunities and challenges for businesses. The ability to manage, store, and utilise this data effectively can make the difference between stagnation and growth. Businesses that use data to gain insights, improve operations, and offer personalised services can unlock new revenue streams and enhance customer satisfaction.
Data storage solutions, such as high-capacity HDDs for archival storage and fast SSDs for quick data access provide the backbone for digital services.
Data centres utilising advanced SSDs can manage large volumes of transactions and queries swiftly, making real-time analytics and decision-making possible. Businesses can retrieve and analyse data faster, leading to more informed decision-making and operational agility. This efficiency translates into cost savings and improved productivity, which are crucial for economic growth.
In an era where security is of paramount importance, encrypted SSDs and secure cloud storage, can help to protect sensitive information. Secure data storage systems help safeguard against unauthorised access, helping ensure that customer and business data stays confidential and intact.
By storing and analysing customer data on scalable SSD storage arrays, companies can analyse the stored data to tailor their offerings to meet individual needs, enhancing customer satisfaction and loyalty. This personalised approach not only can boost sales but also can foster long-term relationships, contributing to sustained economic growth.
Enterprises that utilise cloud storage solutions can scale their operations globally with ease. Digital services powered by efficient cloud data storage can reach remote and underserved areas, promoting financial and social inclusion. For example, mobile banking services rely on secure cloud storage to provide banking solutions to unbanked populations, driving financial inclusion and economic participation across the continent.
Businesses that can use data effectively may be better positioned to compete internationally, opening new markets and opportunities for economic growth.
