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Africa’s data centre market is entering a potentially transformative phase, with demand for computing capacity projected to rise by three to five times by 2030 and requiring between $10 billion and $20 billion in fresh investment, according to Knight Frank’s Africa Report 2026/27.
The expansion is being driven by the rapid adoption of cloud computing, artificial intelligence, streaming, fintech platforms and other data-intensive digital services across the continent.
Knight Frank said the projected investment requirement extends beyond data centre buildings themselves, with significant capital also needed for the power infrastructure required to operate them reliably.
AI, Cloud and Fintech Fuel Capacity Demand
Africa’s growing digital economy is creating a stronger appetite for local computing infrastructure.
The increasing localisation of cloud services, expansion of streaming platforms, growth of fintech and the emergence of AI workloads are expected to substantially increase the amount of data that needs to be processed and stored within the continent.
Knight Frank estimates that demand could expand by approximately three to five times by 2030, turning data centres into an increasingly important infrastructure and investment category.
The consultancy noted that data centres are increasingly being viewed as a distinct real estate asset class, rather than solely as technology infrastructure.
Nigeria Emerges as West Africa’s Key Hub
Nigeria is positioned to play a major role in the projected expansion, with Knight Frank identifying the country as the anchor of data centre demand in West Africa.
The consultancy attributed Nigeria’s position to its large enterprise market, multiple subsea cable connections and growing regulatory emphasis on local data hosting.
As of late 2024, Nigeria had approximately 66 megawatts (MW) of third-party core-and-shell data centre capacity, according to Knight Frank, while several hundred megawatts of additional capacity were reportedly in development.
The scale of the development pipeline points to expectations that demand for local computing infrastructure will continue to rise as Nigerian businesses and consumers deepen their use of digital services.
Power Supply Remains a Critical Challenge
The projected growth also highlights one of Africa’s biggest infrastructure constraints: reliable electricity.
Data centres require continuous power to operate servers, cooling systems and other critical equipment. Consequently, expanding capacity without corresponding investment in electricity generation and supporting infrastructure could limit the sector’s growth.
Knight Frank’s $10 billion-$20 billion investment estimate therefore includes not only new data centre developments but also associated power infrastructure.
The challenge is particularly important as AI workloads increase computing requirements. A separate World Economic Forum analysis, citing McKinsey projections, estimates that Africa’s data centre electricity demand could rise from 0.4 GW to 2.2 GW by 2030.
Africa’s Capacity Is Already Expanding
The projected boom comes as the continent’s existing data centre footprint continues to grow.
A July 2026 report by Fortren & Company estimated that Africa’s operational data centre capacity had already exceeded 500 MW, with another 890 MW of projects in development.
Although South Africa accounts for more than 60% of operational capacity, investment is increasingly spreading to markets including Nigeria, Kenya, Egypt, Ghana, Ethiopia and Morocco.
This suggests that the continent’s data infrastructure market is gradually becoming more geographically diversified.
Investment Opportunity Meets Infrastructure Gap
For investors, the expected growth presents an opportunity across the wider data centre ecosystem, including facilities, connectivity, power generation, cooling and related infrastructure.
But the scale of the required investment also underscores the infrastructure gap that must be addressed if Africa is to capture more value from its rapidly expanding digital economy.
With cloud services, fintech and AI becoming increasingly embedded in business and everyday life, demand for reliable local computing capacity is unlikely to remain confined to Africa’s traditional technology hubs.
For Nigeria and other emerging markets, the ability to combine data centre investment with dependable power, connectivity and supportive regulation could determine how much of the continent’s projected digital growth is ultimately captured locally.
