Uche Cecil Izuora
Nigeria is significantly enhancing energy efficiency in data centers by investing in solar and advanced cooling techniques, aligning with the region’s regulatory and environmental goals.
The investment is expected to increase the country’s market share in the growing Africa data center construction market.
According to the Africa Center Construction Market-Industry Outlook & Forecast 2026-2031, market is projected to experience robust growth, expanding at a Compound Annual Growth Rate (CAGR) of 24.26 per cent from 2025 to 2031.
The outlook forecasts that the market is expected to grow from USD 1.24 billion in 2025 to nearly USD 4.58 billion by 2031.
While South Africa leads in investments and capacity expansions, Nigeria and Kenya are rapidly emerging due to hyperscale projects and cloud adoption.
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.
Kenya’s commitment to reducing greenhouse-gas emissions by 35 per cent 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.
On its part 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.
The report highlights that 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.
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.
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.