Dublin, July 15, 2026 (GLOBE NEWSWIRE) — The “Africa Data Center Construction Market – Industry Outlook & Forecast 2026-2031” has been added to ResearchAndMarkets.com’s offering.
The Africa data center construction market is projected to experience robust growth, expanding at a CAGR of 24.26% from 2025 to 2031. This surge is fueled by substantial investments in digital infrastructure and sustainability initiatives across the continent. Key countries such as South Africa, Nigeria, Kenya, and Egypt are at the forefront of this transformation, embracing advancements in AI, cloud computing, and renewable energy.
Sustainability Initiatives and Renewable Energy
- Kenya’s commitment to reducing greenhouse-gas emissions by 35% by 2035 involves significant strides towards a low-emission economy by 2050, impacting sectors like energy and agriculture significantly.
- Egypt is pivoting towards sustainability with plans to generate 12 GW of renewable energy by 2026, positioning itself as a regional leader in carbon reduction.
- Teraco in South Africa signed a Power Purchase Agreement with NOA to utilize wind energy in data centers, reflecting the growing trend of integrating renewable energy sources.
- Nigeria is enhancing energy efficiency in data centers by investing in solar and advanced cooling techniques, aligning with the region’s regulatory and environmental goals.
Increased Adoption of AI, Automation, and Digitization
- Africa’s digital transformation is accelerating with investments in AI infrastructure. Egypt plans to invest $255.6 million in its ICT sector by FY 2026 to establish itself as a tech hub.
- Microsoft’s initiative to train one million Nigerians in AI skills aims to boost the country’s GDP by $15 billion by 2030, underscoring the massive potential of AI in economic growth.
- South Africa’s $28.4 million investment in AI and blockchain supports its digital capabilities, enhancing public sector operations and academia through the Foundational Digital Capabilities Research platform and CAIR.
Rising Adoption of Cloud-based Services
- The Kenya Cloud Policy introduces a cloud-first approach, catalyzing investments in local cloud services and infrastructure.
- Servernah Cloud, Kenya’s first sovereign AI cloud platform, marks a significant milestone, providing enterprises with powerful local AI capabilities and promoting digital sovereignty.
- Tata Consultancy Services and Sybyl’s strategic partnership with iXAfrica Data Centres facilitates secure local cloud services in Kenya, enhancing data sovereignty and regulatory compliance.
Segment and Geographical Insights
- The market is expected to grow from USD 1.24 billion in 2025 to nearly USD 4.58 billion by 2031. South Africa leads in investments and capacity expansions, while Nigeria and Kenya are rapidly emerging due to hyperscale projects and cloud adoption.
- Infrastructure investments in electrical and mechanical systems focus on energy efficiency and reliability to support data-intensive operations.
- South Africa, Nigeria, Kenya, and Egypt are pivotal in regional growth, with investments driven by cloud and AI infrastructure expansions, submarine cable deployments, and government policies favoring digital economies.
Vendor Landscape
- Major IT infrastructure providers such as Cisco, Dell, and IBM offer robust solutions, while support infrastructure vendors like Schneider Electric and Vertiv supply essential components for data centers.
- Construction firms and engineering companies like AECOM and Arup are integral to the design and construction of state-of-the-art facilities, providing expertise to support expansive projects.
- Leading operators such as Amazon, Microsoft, and Meta are bolstering regional data capabilities through cloud regions and colocation partnerships, stimulating significant growth in the data center construction market.
Key Attributes
| Report Attribute | Details |
| No. of Pages | 189 |
| Forecast Period | 2025-2031 |
| Estimated Market Value (USD) in 2025 | $1.24 Billion |
| Forecasted Market Value (USD) by 2031 | $4.58 Billion |
| Compound Annual Growth Rate | 24.3% |
| Regions Covered | Africa |
Market Dynamics
- Market Opportunities & Trends
- Emerging trends in the data center industry provide significant opportunities for growth and innovation.
- Increase in cloud computing and the rise of artificial intelligence applications are fostering demand for expanded data center capabilities.
- Market Growth Enablers
- Advances in technology and infrastructure are driving efficiency and capacity improvements in data centers.
- Government and corporate investments in data center expansion and modernization are key enablers of market growth.
- Market Restraints
- Challenges such as high operational costs and security concerns pose restraints on market expansion.
- Regulatory compliance and environmental sustainability requirements are becoming increasingly stringent, impacting overall growth dynamics.
For more information about this report visit https://www.researchandmarkets.com/r/f7170j
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- African Data Center Construction Market
