Data centres set to transform Africa’s power market
The rapid rise of data centres across Africa is creating a major shift in the continent’s electricity landscape, offering both challenges and opportunities for investment and digital growth.
According to the African Energy Chamber’s (AEC) State of African Energy 2026 Outlook, demand for electricity from IT infrastructure is surging worldwide, with uninterruptible power supply for data centres forecast to reach 249 GW by 2030, and total installed capacity, including cooling and ancillary loads, projected at 374 GW. Africa’s accelerating digitalisation, cloud adoption, and mobile services mean local power systems must evolve to keep pace.
Data centres are emerging as stable, long-term anchor customers for electricity grids. Unlike traditional loads, they require large volumes of uninterrupted power, providing predictable demand that strengthens the case for new generation capacity and grid expansion. Beyond power markets, data centre development drives job creation, stimulates technology ecosystems, and enhances Africa’s competitiveness in the global digital economy.
Hyperscale operators are increasingly prioritising efficiency and sustainability, spurring innovations in renewable energy procurement, storage, and demand management—trends that align with Africa’s energy transition goals.
However, challenges remain. Electricity supply in many countries is uneven, with outages and limited redundancy affecting resilience. Sustainable cloud infrastructure depends on coordinated policy, investment incentives, robust telecom regulation, and regional collaboration. Rising data sovereignty requirements mean Africa can no longer rely on Europe-based centres alone, prompting global providers to establish local operations and boost domestic data centre capacity.
Successful examples highlight the sector’s potential. South Africa, Africa’s most mature market, has cloud zones from Microsoft and AWS, with Google expected to follow. Current utilisation exceeds 83% and is projected to surpass 94% by 2030, centred on Johannesburg and Cape Town. Kenya is East Africa’s fastest-growing hub, with around 40 MW of IT load capacity and a projected 30% annual growth rate through 2028. Flagship initiatives like the Konza National Data Centre under Vision 2030 are expected to raise total supply beyond 155 MW by 2029.
“Data centres are no longer just a technology story – they are an energy story,” said NJ Ayuk, AEC Executive Chairman. “If Africa gets the power framework right, digital infrastructure can unlock investment, strengthen grids, and accelerate inclusive growth across the continent.”
AEW 2026 will bring together policymakers, financiers, developers and energy stakeholders to explore collaboration as a catalyst for Africa’s data-driven power development. – Distributed by APO on behalf of the Africa Energy Chamber.
