Africa’s Big Leap: The Next Wave of Data Center Construction Beyond Egypt and South Africa

For years, Africa’s data center story has been dominated by two countries: South Africa and Egypt. Johannesburg became the continent’s flagship hub, while Cairo emerged as a northern gateway connecting Africa to the Middle East and Europe. But in 2025, the narrative is expanding. A new wave of data center construction is reshaping Africa’s digital map, with Kenya, Nigeria, Morocco, and Ghana rising as the next frontier markets. 

The drivers are clear: booming internet adoption, undersea cable landings, government digital transformation programs, and surging demand for cloud services. For colocation providers, wholesale operators, and investors, the continent offers a rare opportunity — a fast-growing digital economy with underserved infrastructure and massive untapped potential. 

This article examines Africa’s next phase of data center growth beyond Egypt and South Africa, exploring the markets attracting the most attention, the investment dynamics at play, and the opportunities and challenges for enterprises and hyperscalers. 

Why Africa Is Entering Its Next Data Center Growth Phase 

Internet Penetration and Cloud Adoption 

Africa’s internet penetration has surged, with hundreds of millions of new users coming online via mobile broadband. As enterprises digitize and governments roll out e-services, the demand for cloud hosting, colocation, and local data storage has skyrocketed. 

Subsea Cable Boom 

Africa’s connectivity has been transformed by undersea cable projects like 2Africa, Equiano, and PEACE. These high-capacity cables land in multiple countries, providing the bandwidth backbone that makes data center growth viable across the continent. 

Rising Enterprise and Startup Ecosystems 

Fintech, e-commerce, and mobile banking are exploding across Africa. These industries require low-latency, secure infrastructure. Data centers in Lagos, Nairobi, and Casablanca are emerging to support this surge. 

Government Support and Regulation 

Governments are increasingly offering tax incentives, free zones, and digital economy policies to attract investment. Data sovereignty laws are also creating demand for local hosting. 

Kenya: East Africa’s Digital Powerhouse 

Nairobi has quickly become the anchor of East Africa’s digital infrastructure. With multiple subsea cables landing at Mombasa, Kenya enjoys robust international connectivity. 

• Hyperscaler Expansion – Major cloud providers are eyeing Kenya for regional deployments, drawn by its growing enterprise base. 
• Renewable Energy Advantage – Kenya’s geothermal and hydroelectric resources make it a green energy leaderin Africa, appealing to hyperscalers committed to sustainability. 
• Colocation Growth – Carrier-neutral facilities are emerging, catering to banks, telcos, and government agencies seeking secure hosting. 

Kenya’s role as a gateway to East Africa positions it as one of the continent’s most strategic growth markets. 

Nigeria: West Africa’s Largest Opportunity 

With over 220 million people, Nigeria represents Africa’s largest consumer and enterprise market. Lagos has become the hub for West Africa’s data center development. 

• Population and Demand – A massive population, fast-growing middle class, and surging fintech ecosystem drive demand for data hosting. 
• Connectivity Improvements – Subsea cables like Equiano are transforming Lagos into a connectivity hub. 
• Wholesale Leases – Hyperscalers are signing wholesale agreements in Nigerian facilities to anchor their African growth strategies. 

Despite challenges like power stability, Nigeria’s scale makes it a must-watch market for global investors. 

Morocco: The North African Challenger 

While Egypt has long dominated North African data centers, Morocco is emerging as a strong contender. Casablanca and Rabat are seeing new builds, supported by: 

• Strategic Geography – Morocco’s position between Europe and Africa makes it a natural interconnection point. 
• Renewable Energy Growth – Solar projects like Noor Ouarzazate give Morocco the ability to power data centers sustainably. 
• Enterprise Ecosystem – Multinational corporations are increasingly using Morocco as a regional headquarters, driving IT demand. 

For investors, Morocco offers a blend of stability, proximity, and scalability. 

Ghana: A Rising West African Hub 

Accra is positioning itself as a secondary hub to Lagos, with a smaller but fast-growing digital economy. 

• Government Support – Ghana has introduced policies to attract foreign investment in ICT infrastructure. 
• Regional Connectivity – Subsea cables give Accra strong connectivity to Europe and other African hubs. 
• Colocation Potential – Enterprises and financial institutions are turning to colocation as they modernize IT systems. 

Ghana may not match Nigeria’s scale, but its stability and business-friendly environment make it an attractive alternative. 

Wholesale Colocation and Hyperscaler Dynamics 

As Africa’s markets mature, wholesale colocation is gaining traction. Hyperscalers are signing multi-megawatt leases in Nairobi, Lagos, and Casablanca to launch services faster. This mirrors patterns seen in Latin America and Asia-Pacific a decade ago. 

Colocation providers, meanwhile, are focusing on carrier-neutral facilities, offering enterprises the ability to interconnect with multiple carriers and clouds. These ecosystems are vital for fintech, gaming, and AI applications. 

Investment Trends and Global Players 

Regional Leaders 

Local players like Africa Data Centres and MainOne are expanding aggressively, often backed by private equity. 

Global Entrants 

International providers — including Equinix, Digital Realty, and NTT — are entering the market through acquisitions or joint ventures. Their presence signals long-term confidence in Africa’s digital future. 

Sovereign Wealth and Development Banks 

African governments and international development banks are co-investing in infrastructure, ensuring projects align with national digital agendas. 

Challenges Facing Africa’s Data Center Expansion 

• Power Reliability – Stable electricity remains a challenge in many markets. Renewable energy projects are essential to bridging gaps. 
• Skilled Workforce – Data center operations require expertise. Training programs are expanding, but talent shortages persist. 
• Political Risk – Investors must evaluate stability, regulatory environments, and long-term policy commitments. 
• Community Engagement – Data center projects must deliver clear benefits to local communities to gain support. 

The Future: Africa as the Next Global Data Frontier 

Africa’s digital infrastructure is evolving rapidly. In 2025, the story is no longer just about South Africa and Egypt. Kenya, Nigeria, Morocco, and Ghana are emerging as pillars of the next wave of growth. 

For colocation providers, these markets represent opportunities to serve enterprises modernizing IT. For hyperscalers, they offer footholds to deliver cloud services at scale. For investors, they provide exposure to one of the fastest-growing digital economies in the world. 

The big leap has begun. Africa is no longer on the sidelines of the digital economy — it is building the foundation to become the world’s next frontier of data center development.