South Africa Data Center Market Investment Analysis Report 2025-2030: Coverage of Data Center Investors - Africa Data Centres, Digital Parks Africa, Equinix, NTT DATA, OADC, Teraco, Microsoft, & More
The South Africa Data Center Market is poised for substantial growth, increasing from USD 2.16 billion in 2024 to USD 3.40 billion by 2030 at a CAGR of 7.85%. Johannesburg leads data center expansion, bolstered by investments from tech giants like Google and Huawei. The market's shift towards renewable energy and sustainability, driven by firms like Microsoft and AWS, enhances its appeal. Despite challenges like power outages, the region remains attractive for data center investments. Key players include Teraco, NTT DATA, and Vantage, with significant future infrastructure investments planned.
South African Data Center Market
Dublin, June 20, 2025 (GLOBE NEWSWIRE) -- The "South Africa Data Center Market - Investment Analysis & Growth Opportunities 2025-2030" report has been added to ResearchAndMarkets.com's offering.The South Africa Data Center Market was valued at USD 2.16 billion in 2024, and is projected to reach USD 3.40 billion by 2030, rising at a CAGR of 7.85%.
KEY HIGHLIGHTS
The South Africa data center market became the critical focus for data center investments in 2024. Its commitment to renewable energy is playing a major role in attracting data center investments, as major technology firms seek to minimize their environmental impact.
Johannesburg is among Africa's major cities with fully established cloud regions. It continues to be South Africa's leading hub for data center expansion, marked by a concentrated growth in advanced facilities, hyperscale data centers, and dedicated cloud regions. In January 2024, Google launched its first cloud region in Johannesburg. Huawei is using its three data centers to extend AI cloud adoption in South Africa.
As of December 2024, Johannesburg had a network of 15 data centers and 6+ upcoming data centers in the city. The city also has the presence of leading data center providers such as Vantage Data Centers, NTT DATA, Equinix, Open Access Data Centres (OADC), Teraco (Digital Realty), MTN, and Vodacom Business.
Industrial land prices in South Africa have been growing over the recent years, especially in prime locations, owing to the robust demand and comparatively lesser supply. The average industrial land price in Cape Town varies from $120-$140 per square meter, while the average rental rate ranges around $4 per square meter. Durban and Centurion are also expected to see an increase in data center area in the year 2025.
Sustainability has emerged as a key trend in expanding data centers across the South African data center market in 2024, driven by global environmental imperatives and local regulatory pressures. Leading players such as Microsoft, AWS, and Google are raising the bar with their sustainability targets, prompting others to follow suit to remain competitive.
The South African government has been incentivizing data centers to implement additional alternative energy resources, to reduce dependence on the national power grids and prevent operational disruptions.
South Africa also faces challenges in its energy sector, which include power outages and load shedding due to insufficient generation capacity. The nation's power is heavily dependent on coal-fired plants in the energy grid. More than one-third of the nation's 42,000 MW of electricity is generated by coal-fired power stations.
SOUTH AFRICA DATA CENTER MARKET VENDOR LANDSCAPE
The South Africa data center market has the presence of several colocation data center investors, such as Africa Data Centres, Digital Parks Africa, Equinix, NTT DATA, Open Access Data Centres (OADC), Teraco (Digital Realty), Vantage Data Centers, and others.
Teraco (Digital Realty), NTT Data, Vantage Data Centers, and Africa Data Centres specialize in wholesale data center services, whereas companies such as Open Access Data Centres (OADC) focus on retail data center services.
The majority of the Western hyperscalers are deploying facilities in the South Africa data center market. Cloud operators such as IBM, Microsoft, Oracle, AWS, and Google have all deployed facilities in South Africa.
Microsoft is strengthening its position in the South Africa data center market by expanding its infrastructure with new data centers in the region. In March 2025, Microsoft announced its plan to spend USD 300 million on cloud and AI Infrastructure in South Africa by the end of 2027.
Teraco (Digital Realty), provider of carrier-neutral colocation data centers and interconnection platforms, has plans to launch 4 data centers in South Africa in 2025-2026, with a cumulative investment of approximately USD 877 million.
Being a water-scarce country, liquid cooling systems present a forthcoming challenge in South Africa, necessitating the adoption of an innovative and flexible approach for cooling technologies. The JB7 facility by Teraco (Digital Realty), which is expected to achieve completion by 2026, will feature a closed-loop chilled water system and direct free-air cooling.
EXISTING VS. UPCOMING DATA CENTERS
Existing Facilities in the region (Area and Power Capacity)
Johannesburg
Other Cities
List of Upcoming Facilities in the region (Area and Power Capacity)
Johannesburg
Other Cities
IT Infrastructure Providers
Atos
Cisco
Dell Technologies
Fujitsu
Hewlett-Packard Enterprise
Hitachi Vantara
Huawei Technologies
IBM
Lenovo
ZTE
Data Center Construction Contractors & Sub-Contractors
Abbeydale
AECOM
Arup
B2 Architects
EDS Engineering
H&MV Engineering
Ingenium
ISF Group
ISG
LYT Architecture
MWK Engineering
Rider Levett Bucknall (RLB)
Royal HaskoningDHV
Tri-Star Construction
Support Infrastructure Providers
ABB
Alfa Laval
Caterpillar
Cummins
Delta Electronics
Eaton
Evapco
Johnson Controls
Legrand
Master Power Technologies
nVent
Piller Power Systems
Rittal
Rolls Royce
Schneider Electric
Siemens
STULZ
Vertiv
Data Center Investors
Africa Data Centres
Digital Parks Africa
Equinix
NTT DATA
Open Access Data Centres (OADC)
Teraco (Digital Realty)
Microsoft
Vantage Data Centers
New Entrants
Paratus Namibia
WHY SHOULD YOU BUY THIS RESEARCH?
Market size available in the investment, area, power capacity, and colocation market revenue.
Data center investments in the area (thousand square feet) and power capacity (MW) across cities in the country.
A detailed study of the existing South Africa data center market landscape, an in-depth market analysis, and insightful predictions about the South Africa data center market size during the forecast period.
Snapshot of existing and upcoming third-party data center facilities in South Africa
Facilities Covered (Existing): 53
Facilities Identified (Upcoming): 10
Coverage: 27+ locations
Existing vs. Upcoming (Data Center Area)
Existing vs. Upcoming (IT Load Capacity)
Data center colocation market in South Africa
Colocation Market Revenue & Forecast (2021-2030)
Wholesale vs. Retail Colocation Revenue (2021-2030)
Retail Colocation Pricing
Wholesale Colocation Pricing
The South Africa data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
A transparent research methodology and the analysis of the demand and supply aspects of the market.
Key Attributes:
Report Attribute
Details
No. of Pages
121
Forecast Period
2024 - 2030
Estimated Market Value (USD) in 2024
$2.16 Billion
Forecasted Market Value (USD) by 2030
$3.4 Billion
Compound Annual Growth Rate
7.8%
Regions Covered
South Africa
REPORT COVERAGEThis report analyses the South Africa data center market share. It elaborately analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards.
It discusses market sizing and investment estimation for different segments. The segmentation includes:
IT Infrastructure
Server Infrastructure
Storage Infrastructure
Network Infrastructure
Electrical Infrastructure
UPS Systems
Generators
Transfer Switches & Switchgear
PDUs
Other Electrical Infrastructure
Mechanical Infrastructure
Cooling Systems
Racks
Other Mechanical Infrastructure
Cooling Systems
CRAC and CRAH Units
Chillers Units
Cooling Towers, Condensers, and Dry Coolers
Other Cooling Units
General Construction
Core & Shell Development
Installation & Commissioning Services
Building & Engineering Design
Fire Detection & Suppression Systems
Physical Security
DCIM
Tier Standard
Tier I & Tier II
Tier III
Tier IV
Geography
Johannesburg
Other Cities
TARGET AUDIENCE
Real Estate Investment Trusts
Construction Contractors
Infrastructure Providers
New Entrants
Consultants/Consultancies/Advisory Firms
Corporate and Government Agencies
For more information about this report visit https://www.researchandmarkets.com/r/ip0j7t
About ResearchAndMarkets.comResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
Attachment
South African Data Center Market
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