South Africa's Data Center Market to Surge to $3.4 Billion by 2030
Johannesburg, Friday, 20 June 2025.
Driven by cloud service demand and major investments, South Africa’s data center market is set to grow from $2.16 billion in 2024 to $3.40 billion by 2030.
Investment and Demand Drive Growth
The South African data center market is anticipated to experience robust growth owing to substantial investments from industry giants such as Equinix, NTT DATA, and Microsoft. This expansion is fueled by the rising demand for cloud services and data storage solutions across the region. The projected growth trajectory is from USD 2.16 billion in 2024 to USD 3.40 billion by 2030, representing a compound annual growth rate of over 10% [1]. This signifies a transformative period for South Africa as digital platforms become increasingly critical for both local and international businesses looking to leverage the digital economy in Africa [2].
Impact on the Economy
This significant growth in the data center market is poised to have far-reaching impacts on South Africa’s economy. As more companies migrate operations to digital platforms, the need for extensive data infrastructure becomes increasingly evident. The government’s commitment to renewable energy is also seen as a catalyst for this expansion, given the country’s current challenges with power outages and load shedding [1][3]. Encouragement from the government towards the use of alternative energy resources for data centers is aimed at reducing reliance on South Africa’s strained national power grid [1].
Johannesburg: A Hub for Expansion
Johannesburg has emerged as a primary hub for data center expansion in South Africa. The city hosts a network of 15 data centers as of December 2024, with plans for at least six more facilities. This growth is notably supported by innovative tech companies like Google, which launched its first cloud region in the city in January 2024, and Huawei’s strategic use of its data centers to push AI cloud adoption [1][2]. Industrial land prices in the area have mirrored this demand, notably in Cape Town, with prime locations reaching $140 per square meter [1].
Future Trends and Opportunities
Looking towards the future, sustainability is positioned as a key trend in the development of South Africa’s data centers. Major players such as Microsoft, AWS, and Google are setting increasingly ambitious sustainability targets. Investments are being directed toward creating facilities that are energy-efficient and environmentally friendly. The increase in data center capacity, with a projection to meet the additional need for 1,200 megawatts in Africa by 2030, aligns with the global trend in digital expansion [3]. This commitment to growth and sustainability underlines the importance of continued infrastructure development to support the burgeoning digital economy [1].