Building data centers for Africa’s unique market dynamics

McKinsey’s new research highlights the pivotal role of data centers in Africa’s digital economy, emphasizing that their expansion is crucial for the continent’s businesses and consumers to achieve global competitiveness.

The analysis estimates a substantial investment requirement of $10 billion to $20 billion in new capital. According to McKinsey, this investment could unlock an estimated revenue pool of $20 billion to $30 billion across the data center value chain by 2030. Furthermore, the firm projects that demand for data center capacity could grow significantly, increasing by 3.5 to 5.5 times its current base within the same timeframe, translating to a total installed capacity of 1.5 to 2.2 GW by 2030.

However, the findings also indicate that this demand will not evolve uniformly across the continent. Structural factors such as power reliability, regulatory environments, and infrastructure readiness are identified as key elements that will shape these outcomes. Nevertheless, the research suggests that coordinated investment has the potential to stimulate inclusive growth, foster innovation, and enhance competitiveness, ultimately positioning Africa as a leader in the digital age. Download the full report https://mck.co/48xfnJD