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Africa’s Data Centre Market Projected to Reach $7bn by 2028

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By Divij Ruparelia

Africa’s data centre market is growing at an unprecedented rate, driven by increasing internet penetration, rapid adoption of cloud computing, and soaring demand for digital services. As the continent embraces the digital revolution, the data centre market is projected to reach over $7 billion by 2028, with an annual growth rate (CAGR 2024-2028) of 7%. This growth is not only transforming Africa’s digital landscape but also presenting significant opportunities for investors, technology companies, and local businesses.

The Rise of Internet Users and Cloud Adoption

 There has been a significant surge in internet usage across Africa, with the number of users soaring to approximately 645 million in 2023, representing a remarkable 3.5-fold increase compared to 2014 figures. The upward trend is anticipated to persist, with estimates suggesting that by 2029, the African continent will boast an impressive online population exceeding 1.1 billion connected individuals. This rapid growth, coupled with the COVID-19 pandemic accelerating the shift to cloud computing and remote work, has intensified the need for robust data centre infrastructure. As more businesses and individuals rely on digital services, the demand for data storage, processing, and transmission continues to soar, fuelling the expansion of the African data centre market.

Navigating Challenges and Seizing Opportunities

The growth of data centres in Africa presents immense potential, but it also comes with significant challenges. Many current data centres are concentrated in crowded markets where supply outpaces short-term demand. These facilities, often built to hyperscaler specifications to suit the requirements of tech giants like Meta and Amazon, are prohibitively expensive and over-specced for local enterprises and SMEs. The costs associated with these hyper-scaler data centres are simply too high for the vast majority of African businesses, rendering them inaccessible and impractical. Consequently, the largest data centre providers find themselves competing for a limited number of hyperscalers, leading to revenue traction struggles.

To overcome this challenge, a plethora of local providers offering a true local product-market fit with appropriately sized data centres have emerged and are now uniquely well-positioned for success. These local providers understand the financial constraints and specific needs of African businesses and can offer tailored solutions at more affordable prices. By catering to the budgets and requirements of local enterprises and SMEs, these providers can tap into a much broader customer base and achieve more sustainable growth. Moreover, strategic positioning within core data corridors, connecting landlocked countries to sub-sea fibre cables and housing internet exchanges, presents a lucrative market opportunity for these local providers. This approach not only makes data centre services more accessible to African businesses but also contributes to the overall digital growth and transformation of the continent.

Innovating Amidst Power Instability

One of the most significant challenges facing African data centres is the issue of intermittent power and unreliable electricity supply. Many countries in Africa experience frequent power outages, which can be detrimental to the operation of data centres that rely on a constant and stable power supply.

To mitigate this issue, data centre providers are investing in backup power solutions, such as uninterruptible power supply (UPS) systems and diesel generators. However, these solutions can be expensive to operate and maintain, and they also contribute to carbon emissions. Some data centre providers are exploring alternative power sources, such as solar and wind energy, to reduce their reliance on the grid and improve their sustainability.

Another approach is to locate data centres in areas with more reliable power infrastructure, such as industrial zones or near power generation facilities. This strategy can help to minimise the risk of power outages and ensure a more stable power supply for the data centre.

Data Centres at the Crossroads of Connectivity

The growth of Africa’s data centre market is also contingent upon the availability and accessibility of high-speed internet connectivity. Undersea cables play a crucial role in connecting Africa to the global internet, and data centres that are located near these cables can benefit from faster and more reliable connectivity.

Currently, several major undersea cable systems connect Africa to the rest of the world, including the SEA-ME-WE 5, the Africa Coast to Europe (ACE), and the South Atlantic Cable System (SACS). These cables land at various points along the African coastline, such as Cape Town, Mombasa, and Djibouti, and provide high-capacity connectivity to the continent.

Data centre providers are strategically positioning their facilities near these landing points to take advantage of the available connectivity. For example, Wingu Africa with data centres in Djibouti has connections to SMW-3, EIG, EASSy, AAE-1, SEA-ME-WE-5, and Aden-Djibouti and Liquid Intelligent Technologies has established a data centre in Cape Town, which is near several undersea cable landing stations, including the WACS, SAT-3/WASC, and ACE cables.

In addition to undersea cables, the growth of Africa’s data centre market is also dependent on the availability of terrestrial fibre networks. These networks connect data centres to end-users and enable the delivery of high-speed internet and other digital services.

The development of fibre networks in Africa has been uneven, with some countries having more extensive coverage than others. However, there are several initiatives underway to expand fibre coverage across the continent, such as the pan-African fibre network being built by Liquid Intelligent Technologies.

Data centre providers are also investing in their fibre networks to improve connectivity and reduce their reliance on third-party providers. For example, Raxio’s 500-kilometre fibre network in Uganda which connects its data centres to key locations across the country.

Growth Contingent upon FTTx

The availability of fibre-to-the-x (FTTx) networks is critical for driving the adoption of digital services and applications, such as e-commerce, video streaming, and remote work. As more people and businesses in Africa gain access to high-speed internet through FTTx, the demand for data centre services is expected to increase.

However, the deployment of FTTx networks in Africa has been limited, with only a small percentage of the population currently having access to fibre connectivity. This is due to several factors, including the high cost of infrastructure development, regulatory barriers, and limited investment.

To address this challenge, governments and private sector players are investing in initiatives to expand FTTx coverage across the continent and data centre providers are also partnering with FTTx providers to improve connectivity and reach a wider customer base.

Embracing Sustainability and Green Energy Solutions

The issue of reliable power supply remains a persistent challenge for the African data centre market. Many data centres still grapple with fundamental power issues and remain heavily dependent on diesel generators due to grid unreliability. In response, data centre providers that prioritise renewable and sustainable energy solutions are likely to build company value faster and have ultimately more medium-term appeal for investors and acquirers.

Teraco are making significant investments in green data centres powered by renewable energy and employing advanced cooling technologies to reduce energy consumption. In 2021, Teraco raised $680 million in debt funding to finance what they claim will be some of Africa’s largest and most environmentally friendly data centres, adding 100MW in capacity, including a utility-scale renewable energy site. This move reflects the growing importance of sustainability in the data centre industry and the need for operators to align their practices with global ESG standards, which are increasingly becoming a fundamental requirement for many investors and strategics in the sector.

Other data centre providers in Africa are also exploring innovative solutions to address the power challenge. For example, Africa Data Centres, part of Cassava Technologies has announced plans to power its facilities with renewable energy, with a target of achieving carbon neutrality by 2030.

Key Players and Investment Landscape

The African data centre market is populated by a diverse array of players, from local start-ups to global technology giants. As the market has matured over the past three years, consolidation and international strategic interest have become more prevalent, with global entrants such as Digital Bridge and Equinix making their mark.

Equinix, a global leader in data centre services, has established a strong presence in Africa, while Teraco, majority acquired by Digital Bridge in 2022, continues to expand its footprint. Raxio Data Centre, having raised up to $170 million in debt and $46 million in equity financing in 2023, is another key player driving growth in the region. Wingu Africa, supported byAfrica Capitalworks, with data centres built or under construction in Djibouti, Somaliland, Ethiopia, and Tanzania, and IX Africa, supported by Helios Investment Partners, are also making significant contributions to the market’s development.

The influx of over $2 billion in funding for African data centre operators in 2021 alone underscores the immense growth potential and investor confidence in this sector. This surge in investment is driven by the recognition of the critical role data centres play in enabling digital transformation, supporting economic growth, and fostering innovation across the continent.

Emerging Markets and Future Growth

While Johannesburg, Cape Town, Lagos, and Nairobi currently have the most cumulative MW of leased data centre capacity in Africa, a 451 Research report from June 2023 highlights that the fastest-growing markets are Kinshasa, Luanda, Cairo, and Dar es Salaam, with 2022-25 CAGRs of 233%, 64%, 48%, and 45%, respectively. There is hardly anywhere else where such sustained growth is available in what otherwise is a globally maturing market.

This highlights the broadening of the market across the continent, with significant growth potential in previously underserved regions. These emerging markets present a unique opportunity for data centre operators to establish a presence early and capitalise on the growing demand for digital services in these areas. The rise of edge computing, the adoption of 5G networks, and the growing importance of data sovereignty will further drive the demand for localised data centre infrastructure across Africa.

Unlocking Value in the African Data Centre Market

The African data centre market is in the midst of a remarkable growth phase, presenting a wealth of opportunities for investors, technology companies, and local businesses. As local and international players continue to invest in the development of state-of-the-art data centres across the continent, Africa is poised to become a major player in the global digital economy.

The key to unlocking value in this market lies in addressing the unique challenges and opportunities present in Africa. Providers that offer appropriately sized data centres with a true local product-market fit, prioritise renewable energy solutions, and strategically position themselves within core data corridors will be well-positioned for success. As consolidation continues over the next three years, operators that achieve scale and market relevance will be best equipped to capitalise on the $7 billion+ market potential.

By investing in the right players, partnering with local businesses, and embracing sustainable practices, stakeholders can tap into the immense growth potential of this sector and play a pivotal role in shaping Africa’s digital future. As the continent continues to embrace the digital revolution, the African data centre market is set to become a key driver of economic growth, innovation, and social progress.

Divij Ruparelia is the COO at DAI Magister

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Bridging Theory and Practice: Integrating Measurement Education in Tertiary Curriculums

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Integrating Measurement Education

By Philip Odiakose

As a public relations measurement and evaluation expert with more than a decade of experience advocating the integration of measurement and evaluation into communications and PR engagements, I have witnessed firsthand the knowledge gaps that exist in the field.

These gaps are particularly evident in how PR professionals and agencies approach measurement and evaluation. The reality is that the acceptance and best practices of PR measurement and evaluation must start from the classroom.

This is why I strongly believe that measurement and evaluation education must be integrated into the curriculum of Mass Communications, Public Relations, and Media departments in tertiary institutions. It is only through this structured education that we can begin to produce PR professionals who are future-ready, and equipped with the technical know-how to design, measure, and evaluate campaigns effectively.

The absence of measurement and evaluation in the traditional curriculum of many institutions has created a disconnect between the theoretical knowledge taught in schools and the practical realities of the PR profession. Most PR graduates enter the field with a strong understanding of communication strategies but little to no knowledge of how to measure the success of those strategies or how to leverage data for impactful decision-making.

Measurement and evaluation are not just add-ons; they are integral to ensuring accountability, transparency, and effectiveness in PR and communication efforts. Without a foundational understanding of how to measure impact, PR practitioners are left to rely on outdated metrics or superficial indicators that do not reflect true campaign performance.

In this regard, I must commend institutions that have made deliberate efforts to bring real-life and practical measurement experiences into the classroom. One standout example is Covenant University in Ota, Ogun State, Nigeria. Over the years, I have had the privilege of working with the Communications and Media Studies Department, thanks to Dr. Kehinde Oyesomi, who has consistently provided opportunities for her students to learn the basics of measurement and evaluation. This hands-on approach equips students with the analytical mindset required to thrive in the PR and communications industry. By exposing students to real-world applications of measurement, institutions like Covenant University are raising a generation of practitioners who will be better prepared to navigate the complexities of the industry.

Another commendable example is the initiative by the NIGERIAN INSTITUTE OF PUBLIC RELATIONS, LAGOS (Lagos NIPR), which integrated measurement and evaluation education into its curriculum in 2017. This forward-thinking move was driven by a partnership between P+ Measurement Services and the NIPR Lagos leadership at the time, under the chairmanship of Segun Mcmedal.

It is encouraging to see that this initiative has been sustained by the current chairperson, Madam Comfort Obot Nwankwo, reflecting a commitment to continuous learning and professional development. However, this effort must go beyond the Lagos chapter; it is my hope that the Nigerian Institute of Public Relations, under the leadership of Dr. Ike Neliaku, will recognize the importance of adopting measurement and evaluation as an integral part of the institute’s curriculum nationwide.

Education is the foundation of knowledge and practice. In the same vein, it is the starting point for the usage, integration, and acceptance of PR measurement and evaluation as a core function within the industry. Without education, we risk perpetuating the cycle of ignorance, where PR professionals fail to understand the value of data-driven insights and fall back on outdated or ineffective practices. To address this, the measurement community must actively champion education as a means to bridge the gap between theory and practice. This is why global initiatives like AMEC Measurement and Evaluation Education Hub under the leadership of Johna Burke are so vital.

As a founding member of #AMECLabInitiative, I am proud to be part of a mission that focuses on skill development, career progression, and knowledge sharing within the global measurement community. AMEC’s efforts to promote education in measurement and evaluation for public relations and communications are critical to ensuring that best practices are not only adopted but also sustained across the industry.

The value of measurement cannot be overstated. It is both the science and the art of public relations, providing a framework for accountability and a pathway to continuous improvement. However, to achieve this, we must first address the root of the problem: the lack of formal education in measurement and evaluation.

By integrating it into the curriculum of universities and professional bodies, we are not only equipping students with the skills they need to succeed but also ensuring that the industry as a whole evolves to meet the demands of a data-driven world. As I often say, “Education is the beginning, the middle, and the end of the acceptance and best practices of measurement.”

In conclusion, I call on tertiary institutions across Nigeria to embrace the integration of measurement and evaluation into their Mass Communications, PR, and Media curriculums. This is not just about equipping students with technical knowledge; it is about shaping the future of the PR profession. Measurement and evaluation are not static; they are dynamic, evolving with trends, tools, and technologies.

By embedding this education into the classroom, we are creating a pipeline of professionals who are not only skilled but also adaptable, innovative, and ready to lead. The future of PR measurement and evaluation lies in education, and it is up to us as practitioners, educators, and industry leaders to ensure that this foundation is built strong and sustained for generations to come.

Philip Odiakose is a leader and advocate of PR measurement, evaluation and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMEC, NIPR and AMCRON

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How to Awaken the Conscience of the World?

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Immigration Quota World Map

By Kingsley Omose

Sharp conflicts have always indicated transformation points to the consciousness of the world and provided pivots. Pivot is a point of articulation, a point at which things balance.

Sharp conflicts, whether it is a world war or (war in) Iraq, has always indicated transformation points to the consciousness of the world and provided pivots to a new design of human actions.

Things change after the world is traumatised or the world has sharp military conflict or collision of the human will in the earth has always provided pivot points or transformation points to the world’s consciousness.

We look at these events, look at the terrible things that are taking place, but behind that we recognise the fact that things are shifting to new positions.” Dr. Noel Woodroffe on Core Imperatives for Successful Nation Development

Gandhi used the principle of embracing personal suffering from your oppressor without retaliation to wake the conscience of your oppressor and make him stop the oppression to free India from British colonial rule.

In doing this, Gandhi had pointed to Jesus Christ as showing the way to embracing the principle of embracing unjust personal suffering visited on him by those he came to save to awaken the conscience of humanity to the path of reconciliation with its Creator, God.

Gandhi set up unarmed Indian protesters to defy unjust British laws and policies and then for these Indians to resort with non-violence when the British Army made up principally of Indians visited them with violence in return.

While Gandhi used the principle from a majority population perspective, Martin Luther King Jr. took the same principle and applied it from a Black minority population perspective to awake the conscience of the dominant white population in the US to the evils of segregation.

He simply organised Black protesters to defy the segregation policy and not to respond with violence when the police in the South came to enforce segregation with brutality and unwarranted violence before the American media who were on hand to record it.

This was what gave birth to the Civil Rights Act in the US ending segregation and legal racial discrimination, amongst others. Hamas deviated substantially from Gandhi and Martin Lutther King Jr. in that its application of the principle was triggered through violence and killing of over 1,200 Israelis during its border invasion on October 7, 2023.

The issue before Hamas was how a minority population brings the attention of the world to Israel’s biggest open air fenced prison in the world with over 2.5 million Palestinians, and by extension, the issue of a Palestinian state.

First, without the knowledge of the 2.5 million Palestinians in Gaza, Hamas dug tens of thousands of kilometres of tunnels deep underneath Gaza.

Then, on October 7, 2023, Hamas and its allies broke through reinforced concrete walls separating Gaza from Israel, invaded some neighbouring communities, killed over 1,200 people, and forcefully took over 200 Israeli captive back with them into the tunnels underneath Gaza.

An enraged Israel with its Western allies reacting to what they regarded as a massacre swallowed the bait, and what the world has witnessed live on all media platforms in the last 13 months has been a morden defining of what constitutes genocide as the full military might of Israel and its Western allies was visited on an unarmed nonviolent Palestinian population in Gaza.

Make no mistake, implementing this strategy came at great cost to Hamas and its leaders, but what has shaken a watching world to its core has been the resulting violence and suffering visited on over 2.5 million unarmed Palestinians, mostly women and children, by the Israeli government and military with the support of its Western allies.

A peace deal has now been brokered between Israel and Hamas facilitated by Donald Trump using a 3-stage peace plan earlier put forward by the Biden administration, starting with the exchange of prisoners between both sides.

But be assured that just as happened in India gaining independence from the British with the help of Gandhi, and with the civil rights movement in the US spearheaded by Martin Luther King Jr., the Palestinian cause is now a global issue thanks to the actions of Israel and its Western allies in the last 13 months.

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Reflection on Groups’ Kindness to Alidinma Mixed Secondary and Ute Okpu Grammar Schools

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Alidinma Mixed Secondary

By Jerome-Mario Utomi

This piece was inspired by two separate but related events; the first has to do with the news report that Dr. Philomena Onoyona Foundation, in line with its vision of giving unwavering commitment to education and community development, recently made a strategic visit to Alidinma Mixed Secondary School in Agbor Alidinma in Ika South Local Government Area of Delta State, where it donated learning materials worth thousands of naira to the students.

The second and closely related to the above centres on the revelation that the Ute Okpu Community in Ika North-East Local Government Area of Delta State recently came alive as the 1990 Set of Ute Okpu Grammar School Old Students Association celebrated its annual reunion with a series of social responsibilities aimed at giving back to the society.

These activities, programmes and initiatives include but are not limited to; deworming of children aged 10 years and below, payment of tribute to the unsung heroes of Ute Okpu Grammar School, presentations of lecture series, bestowing of awards, testimonials, plaques and cash gifts on the school’s outstanding/dedicated teachers, staff, and alumni in recognition of their tireless efforts and unwavering commitment, and unrelenting passion for education.

At a glance, the above show of love by the Foundation and the Old Students Association portrays a bunch that recognizes Social Responsibility as an ethical framework in which individuals or corporations must act in the best interests of their environment and society as a whole, fulfilling their civil duty and taking actions that are beneficial to both the present and upcoming generations.

Beyond the donations, worthy of mention are their messages of hope and resolve to continually support both the present and future students within the state and beyond.

Take as an illustration, Dr. Onoyona underlined that the latest visit and donation of learning materials to the students of Alidinma Mixed Secondary School is the foundation’s way of raising from our community, academically strong and well-informed youths that will provide the future leadership needs of our nation as well as compete favourably with their counterparts abroad’’.

The Nigerian-born and U.S.-based social worker and advocate while calling on other well-meaning and quietly influential Nigerians to team up in her current quest to uplift less privileged and vulnerable youths out of poverty and illiteracy, added that this benevolent outreach which focuses on empowering students through provisions of essential educational materials such as school bags, relevant books, pens, and pencils, among others will continue and be extended to other schools within Delta state and beyond to equip the students with the tools needed to excel academically and inspire a brighter future.

In a related development, Speaking via a statement signed by one of the leading members, Chukwuka Justus Iwegbu and titled; The Spirit of Giving Back to Our Community and Alma Mater: A Tribute to the Unsung Heroes of Ute Okpu Grammar School 1990 Set Old Students Association, the Ute Okpu Old Students Association explained that the event which took place at Ute Okpu Unity Town Hall was a testament to the enduring spirit of the alumni association and its commitment to recognizing the contributions of its esteemed members.

“One thing that brought us together after so many years of leaving our alma mater is unity and love. We may not bother ourselves with the sung and unsung stories because we have a whole lot of members who believe in an unsung story of positive contribution and impact on the lives of others. Remembering our roots remains our major mandate and a call to duty.

“The Ute Okpu Grammar School Alumni Association, 1990 set, is committed to giving back to our alma mater and the Ute Okpu community. We believe that education is the key to unlocking the potential of individuals and communities, and we are dedicated to supporting initiatives that promote educational excellence and intergenerational change,” the statement concluded.

Without a doubt, it will be convenient for many to argue that there is nothing philanthropic to attract media coverage of such a low-profiled donation of learning material, particularly as the value of the donation in question is not measured in billions of Naira.

For me, there are lessons to learn from these groups and every reason to celebrate their actions.

First and very fundamental is the hidden truth that members of these groups are not in absolute terms wealthy, particularly going by Nigerians’ context and definition of riches but were predominantly fired by the burning desire to uplift the life chances of the poor and vulnerable in their environment through educational support.

Regardless of what others may say, this piece holds the opinion that these morally eminent men and women made donations to schools not only as a positive behavioural culture but largely in recognition of the time-honoured aphorism which considers education as the bedrock of development; that with sound educational institutions, a country is as good as made -as the institutions will turn out all rounded manpower to continue with the development of the society driven by well thought out ideas, policies, programmes, and projects.

Their action equally symbolises a bunch in consonance with the fact that it is our collective responsibility to ensure that our schools work and our children are properly educated at the right time.

With their culture of donating to the students’ welfare and comfort, the group, in my view,  amplified the notion that children enjoy the right to education as recognized by a number of international conventions, including the International Covenant on Economic, Social and Cultural Rights which recognizes a compulsory primary education for all, an obligation to develop secondary education accessible to all, as well as the progressive introduction of free higher education/obligation to develop equitable access to higher education.

We must also not fail to remember that a few years ago, the National Human Rights Commission (NHRC), in line with its mandate to promote and protect human rights, established the right to education as a thematic area of focus to drive its vision of having all children enrolled in school as well as to ensure that the culture of human rights is promoted and maintained in schools.

One common fact we must not shy away from as a people is that the crushing weight arising from education funding in Nigeria and globally has become too heavy for only the government to shoulder and that is another reason why the intervention/donation by these groups is most profound.

As we celebrate these uncommon efforts, the lesson we must all draw from the example of these groups is that it is time for all to collectively find creative and sustainable solutions to educational provision for all in Nigeria, especially for the children of the poor and lowly as these children deserve the right to hold all of us accountable.

If we fail to provide this traditional but universal responsibility to these children, their future will hang in the balance as a result of such failures. And chances are that most of them will run to the streets. And, as we know, the streets are known for breeding all sorts of criminals and other social misfits who constitute the real threat such as armed robbers, thugs, drug abusers, drunkards, prostitutes and all other social ills that give a bad name to society.

Utomi, a media specialist, writes from Lagos, Nigeria. He can be reached via Jeromeutomi@yahoo.com/08032725374

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