The Africa data center construction market by investment was valued at USD 1.26 billion in 2025 and is expected to reach USD 3.06 billion by 2030, growing at a CAGR of 15.94% during the forecast period.

The South Africa Data Center Construction Market report segments the industry into Infrastructure (Electrical Infrastructure, Mechanical Infrastructure, General Construction), Tier Type (Tier 1 and 2, Tier 3, Tier 4), and End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical data alongside five-year market forecasts.

The Middle East and Africa data center construction market is expected to grow at a CAGR of 8.54% and is expected to reach USD 4.26 billion by 2028.

The size of the South Africa Data Center Construction Market market was valued at USD 1.31 Million in 2023 and is projected to reach USD 2.60 Million by 2032, with an expected CAGR of 10.27% during the forecast period. Recent developments include: February 2024: Equinix Inc. decided to invest USD 390 million in Africa over the next five years. The investment will focus on constructing new data centers and bolstering its existing operations, primarily in South Africa and the western regions of the continent.January 2023: Africa Data Centres, a subsidiary of Cassava Technologies, a prominent pan-African technology conglomerate, revealed plans for its second data center in Cape Town. Positioned in the northern region of the city, this new facility is set to accommodate an IT load of 20 MW. With construction already in progress, the center is slated for completion and operational status by 2024.. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

Explore the booming South Africa data center construction market, projected to reach USD 1.31 billion in 2025 with a 10.27% CAGR. Discover key drivers, segments like electrical and mechanical infrastructure, and insights into end-user demand. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

The South Africa Data Center Construction Market is poised for substantial expansion, projected to reach an estimated market size of USD 1.31 billion by 2025. This growth is fueled by a robust Compound Annual Growth Rate (CAGR) of 10.27%, indicating a dynamic and rapidly developing sector. The increasing demand for digital services, cloud computing, and data storage solutions across various industries, including BFSI, IT and telecommunications, and government, is a primary driver. Furthermore, the ongoing digital transformation initiatives within South Africa are necessitating the development of advanced and resilient data center infrastructure to support these evolving technological landscapes. Key trends shaping the market include a significant focus on building more sophisticated and high-tier facilities, with Tier 1 and 2 data centers likely to see increased investment for their enhanced reliability and uptime. The segmentation reveals a strong emphasis on both electrical and mechanical infrastructure. Within electrical infrastructure, power distribution solutions like smart PDUs, transfer switches, and switchgear are critical, alongside robust power backup solutions such as UPS and generators. Mechanically, advanced cooling systems, including immersion cooling and direct-to-chip solutions, are gaining traction to manage the increasing heat density of modern IT equipment. While specific drivers and restraints were not explicitly detailed, common industry factors such as the need for scalable infrastructure, cybersecurity concerns, and the adoption of sustainable construction practices are likely influencing investment decisions and project timelines. Key drivers for this market are: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Potential restraints include: 4., Government Support for Data Center Development4.; Advent of Cloud, Big Data, and IoT Technologies Driving Investments. Notable trends are: Tier 3 Data Centers Holding Significant Market Share.

The Africa Data Center Market Report is Segmented by Data Center Size (Large, Massive, Medium, Mega, and Small), Tier Standard (Tier 1 and 2, Tier 3, and Tier 4), Data Center Type (Hyperscale/Self-Built, Enterprise/Edge, and Colocation), End User Industry (BFSI, IT and ITES, E-Commerce, Media and Entertainment, and More), and Country (South Africa and More). The Market Forecasts are Provided in Terms of IT Load Capacity (MW).

In Middle East and Africa Data Center Construction Market, Data centers are critical infrastructure for the digital economy, supporting services such as cloud computing, enterprise applications, and data storage.

Data Center Construction Market Outlook

According to our latest research, the global data center construction market size reached USD 58.3 billion in 2024, demonstrating robust expansion driven by digital transformation initiatives and surging data consumption worldwide. The market is anticipated to grow at a CAGR of 6.7% from 2025 to 2033, with the total market value projected to reach USD 105.2 billion by 2033. Key growth factors include the proliferation of cloud computing, rapid adoption of advanced technologies such as AI and IoT, and the ever-increasing demand for hyperscale and edge data centers. As per our latest research, the sector is witnessing significant investments from both private and public entities, further propelling expansion across all major regions.

One of the primary growth drivers for the data center construction market is the exponential rise in digital data generation, fueled by the widespread adoption of cloud-based services, big data analytics, and artificial intelligence. Enterprises across diverse sectors are modernizing their IT infrastructure to accommodate high-speed, low-latency applications, which, in turn, is accelerating the demand for new data centers. The emergence of 5G networks is also playing a pivotal role by enabling faster data transmission and supporting the deployment of edge computing facilities closer to end-users. This technological convergence is compelling organizations to invest in state-of-the-art data centers that offer scalability, security, and energy efficiency, thereby driving sustained market growth.

Additionally, increasing regulatory requirements for data localization and heightened cybersecurity concerns are compelling organizations to construct data centers within national borders, further stimulating market expansion. Governments worldwide are implementing stringent data protection laws, necessitating the development of local data storage and processing facilities. This trend is particularly pronounced in regions such as Europe and Asia Pacific, where regulatory frameworks like GDPR and China’s Cybersecurity Law have a direct impact on data center construction activities. Furthermore, the growing emphasis on sustainability and the adoption of green building practices are influencing the design and construction of energy-efficient data centers, aligning with global environmental goals and attracting eco-conscious investors.

Another significant growth factor is the surge in demand from emerging markets, where rapid urbanization and digitalization are driving the need for reliable data infrastructure. Countries in Asia Pacific and Latin America are witnessing a boom in e-commerce, digital payments, and online services, necessitating robust data center networks to support these activities. The proliferation of smart devices and IoT applications is also contributing to the rising need for localized data processing and storage solutions. As a result, major industry players are expanding their footprint in these regions, leveraging strategic partnerships and investments to capitalize on untapped growth opportunities and cater to the evolving needs of local enterprises.

From a regional perspective, North America continues to dominate the data center construction market, owing to its advanced technological ecosystem, high concentration of cloud service providers, and significant investments in hyperscale data centers. However, Asia Pacific is emerging as the fastest-growing region, driven by rapid digitalization, favorable government policies, and the increasing adoption of cloud computing among enterprises. Europe also holds a substantial share, supported by strong regulatory frameworks and a focus on sustainable data center development. Meanwhile, the Middle East & Africa and Latin America are gradually catching up, propelled by infrastructural advancements and rising demand for digital services.

Type Analysis

The data center construction market by type is broadly categorized into electrical construction, mechanical construc

The size of the Middle East Data Center Construction Market market was valued at USD XX Million in 2024 and is projected to reach USD XXX Million by 2033, with an expected CAGR of 14.74% during the forecast period. Recent developments include: October 2022: Mohamed bin Ali bin Mohamed Al-Mannai, Minister of Communications and Information Technology, launched the M-VAULT 4's fourth data center building. Customers in Qatar can access cloud services through the Microsoft Cloud data center region housed in the new data center facility., October 2022: The prominent network of hyperscale data centers in the Middle East and North Africa region, a joint venture between Khazna Data Centers and Masdar and EDF inked a deal to build a ground-mounted solar photovoltaic (PV) plant to power Khazna's new data center in Masdar City.. Key drivers for this market are: Rising Adoption of Renewable Energy Sources, Increase in 5G Deployments Fueling Edge Data Center Investments; Smart City Initiatives Driving Data Center Investments. Potential restraints include: Security Challenges in Data Centers, Location Constraints on the Development of Data Centers. Notable trends are: End-User Outlook.

The size of the Africa Data Center market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 21.06% during the forecast period. Recent developments include: February 2023: The company has announced plans of opening a new data center in Senegal, the facility would be in close proximity to the cable landing station having 2Africa submarine cable.December 2022: With a USD 160 million data center investment in JOHANNESBURG, Equinix, Inc., a provider of digital infrastructure, wants to expand its presence on the African continent beyond its current locations in NIGERIA, GHANA, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa; JN1, a new 4.0 MW data center, will offer more than 20,000 gross square feet of colocation space and 690+ cabinets. Also, there will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross square feet of colocation space and 3,450+ cabinets.November 2022: A new hyperscale data center facility with a 30 MW critical power load has begun construction at Teraco's Isando Campus in Ekurhuleni, South Africa, east of Johannesburg. The JB5 plant will use the most up-to-date, ecologically friendly cooling and water management designs, and it is expected to finish by 2024.. Key drivers for this market are: Rise of E-Commerce, Flourishing Startup Culture. Potential restraints include: Slow Penetration Rate in Developing Countries. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

Snapshot img

Data Center Market Size 2025-2029

The data center market size is valued to increase USD 535.6 billion, at a CAGR of 15.6% from 2024 to 2029. Rise in adoption of multi-cloud and network upgrades will drive the data center market.

Major Market Trends & Insights

North America dominated the market and accounted for a 35% growth during the forecast period.
By Component - IT infrastructure segment was valued at USD 109.40 billion in 2023
By End-user - BFSI segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 248.77 billion
Market Future Opportunities: USD 535.60 billion
CAGR : 15.6%
North America: Largest market in 2023

Market Summary

The market represents a dynamic and continually evolving landscape, driven by the increasing demand for digital transformation and the adoption of advanced technologies. Core technologies, such as artificial intelligence (AI) and multi-cloud solutions, are revolutionizing data center operations, with AI implementation projected to increase by 40% by 2025. Meanwhile, applications in sectors like finance, healthcare, and retail are fueling the growth of data centers. Service types, including colocation, managed services, and cloud services, are adapting to meet the demands of these evolving applications.
Regulatory compliance, particularly around data security and privacy, remains a significant challenge. Despite these hurdles, opportunities abound, with the market expected to grow at a steady pace, particularly in regions like Asia Pacific and Europe, where digital transformation is accelerating.

What will be the Size of the Data Center Market during the forecast period?

Get Key Insights on Market Forecast (PDF) Request Free Sample

How is the Data Center Market Segmented and what are the key trends of market segmentation?

The data center industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Component

  IT infrastructure
  Power management
  Mechanical construction
  General construction
  Security solutions


End-user

  BFSI
  Energy
  IT
  Others


Design

  Traditional
  Containerized
  Modular


Data Center Size

  Small and Medium Data Centers
  Large Data Centers


Tier Type

  Tier 1 and 2
  Tier 3
  Tier 4


Type

  Enterprise Data Centers
  Colocation Data Centers
  Cloud Data Centers
  Managed Data Centers
  Edge Data Centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Component Insights

The it infrastructure segment is estimated to witness significant growth during the forecast period.

Data centers are essential IT infrastructure components that house the hardware and systems required to support the increasing demand for computing power and data storage. The market encompasses various technologies, including server hardware, storage infrastructure, software-defined data centers (SDDC), network infrastructure, converged infrastructure, backup and recovery software, automation software, and data center infrastructure management (DCIM) solutions. Enterprises worldwide are adopting cloud technologies, leading to a shift from on-premises data centers to cloud-based alternatives. This trend is fueled by the need for scalability, flexibility, and cost savings. According to recent reports, the adoption of cloud services has grown by 25%, with an estimated 30% of all workloads expected to be run in the cloud by 2022.

Moreover, the rise of edge computing and the Internet of Things (IoT) is driving the demand for bandwidth utilization and low latency, leading to the deployment of edge data centers. The uninterruptible power supply (UPS) systems market is projected to expand at a steady pace due to the increasing importance of ensuring data center uptime and minimizing downtime. Structured cabling systems and fiber optic cabling are essential for efficient data transfer and communication within data centers. The market for these systems is expected to grow by 12% due to the need for high-speed connectivity and the increasing adoption of advanced technologies like software-defined networking (SDN) and hyperconverged infrastructure (HCI).

Data center automation and virtual machine management are crucial for managing the complexity of modern data centers. These technologies are expected to experience a growth rate of 15%, driven by the need for efficient resource utilization and the increasing adoption of DevOps practices. The market for high-availability clusters and disaster recovery planning solutions is expecte

The African data center market is experiencing robust growth, driven by the increasing adoption of cloud computing, the expansion of digital services, and substantial investments in digital infrastructure across the continent. The market is segmented by data center size (large, massive, medium, mega, small), tier type (Tier 1 & 2, Tier 3, Tier 4), absorption (utilized, non-utilized), colocation type (hyperscale, retail, wholesale), and end-user industry (BFSI, cloud, e-commerce, government, manufacturing, media & entertainment, IT, others). Key players like Africa Data Centres, Equinix, and Rack Centre are strategically positioning themselves to capitalize on this burgeoning demand. South Africa, Nigeria, and Egypt currently represent the largest markets, but significant growth is anticipated in other regions like Kenya, Ethiopia, and Morocco, fueled by rising internet penetration, government initiatives promoting digital transformation, and the expansion of mobile network infrastructure. The market’s expansion is further supported by the growing need for data sovereignty and the increasing adoption of edge computing to reduce latency and improve service delivery. While challenges remain, such as limited power infrastructure in certain regions and high capital expenditure requirements, the long-term outlook for the African data center market remains exceedingly positive. The forecast period (2025-2033) projects sustained, albeit potentially fluctuating, growth, influenced by economic factors, technological advancements, and regulatory changes across various African nations. The market will likely see an increase in competition as both local and international players vie for market share. The focus on sustainability and energy efficiency in data center operations will become increasingly important, driving innovation in cooling technologies and renewable energy integration. Furthermore, the development of robust regulatory frameworks that support data privacy and security will become crucial to fostering trust and investor confidence in the burgeoning African data center ecosystem. Strategic partnerships and mergers and acquisitions are likely to shape the market landscape during the forecast period, consolidating market power and driving innovation. The demand for hyperscale data centers is expected to be a significant driver of market growth, especially in countries with a large population and growing digital economy. Recent developments include: February 2023: The company has announced plans of opening a new data center in Senegal, the facility would be in close proximity to the cable landing station having 2Africa submarine cable.December 2022: With a USD 160 million data center investment in JOHANNESBURG, Equinix, Inc., a provider of digital infrastructure, wants to expand its presence on the African continent beyond its current locations in NIGERIA, GHANA, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa; JN1, a new 4.0 MW data center, will offer more than 20,000 gross square feet of colocation space and 690+ cabinets. Also, there will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross square feet of colocation space and 3,450+ cabinets.November 2022: A new hyperscale data center facility with a 30 MW critical power load has begun construction at Teraco's Isando Campus in Ekurhuleni, South Africa, east of Johannesburg. The JB5 plant will use the most up-to-date, ecologically friendly cooling and water management designs, and it is expected to finish by 2024.. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

South Africa Data Center Market size was valued at $ 8.18 Bn in 2024 and is expected to reach $ 18.95 Bn by 2032, growing at a CAGR of 11.2% from 2026 to 2032.The rapid expansion of the South Africa data center market is primarily driven by growing internet penetration, mobile usage, and the rise of digital services such as e-commerce and online banking.

The size of the Africa Data Center Server market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 15.40% during the forecast period. Recent developments include: June 2023: Kingston Technology Company, Inc., a significant provider of memory products and technology solutions, announced the launch of its 32 GB and 16 GB Server Premier DDR5 5600 MT/s and 5200 MT/s ECC Unbuffered DIMMs and ECC SODIMMs., September 2022: Lenovo Group Ltd. introduced dozens of new servers, storage systems, and Hyperconverged Infrastructure appliances, as well as a cloud-based hardware management service. Intel Corp. Sapphire Rapids server processors would be incorporated into some of the new systems it is rolling out. The processors, which are scheduled to launch in the market next year, use a ten-nanometer Intel 7 manufacturing process.. Key drivers for this market are: Adoption of cloud computing services, Advent of 5G networks. Potential restraints include: Rising CapEx for data center construction, Cybersecurity Threats and Ransomware attacks. Notable trends are: IT & Telecommunication Segment Holds the Major Share..

Snapshot img

Data Center Mechanical Construction Market Size 2025-2029

The data center mechanical construction market size is forecast to increase by USD 22.92 billion at a CAGR of 16.1% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of High Performance Computing (HPC) across enterprises and the subsequent expansion of hyperscale centers. This trend is fueled by the ever-growing demand for data processing and storage, particularly in industries such as finance, healthcare, and technology. However, the market is not without challenges. One of the most pressing issues is the high power consumption in data centers, which necessitates the implementation of energy-efficient solutions and the adoption of renewable energy sources. Additionally, the complexity of construction projects and the need for specialized expertise add to the market's challenges. 
One of the primary drivers is the increasing investments in construction, as businesses recognize the importance of digital transformation and the role play in supporting their operations. This trend is driven by the proliferation of edge computing, 5G technology, and digital transformation initiatives. Despite these hurdles, opportunities abound for companies that can navigate the intricacies of mechanical construction and provide innovative, energy-efficient solutions to meet the demands of this rapidly evolving market. By staying abreast of the latest trends and developments, companies can position themselves to capitalize on the significant growth potential in this sector.

What will be the Size of the Data Center Mechanical Construction Market during the forecast period?

Request Free Sample

The market is experiencing significant growth and innovation, driven by the increasing demand for more efficient and compliant solutions. Virtualization and consolidation are key trends, leading to the adoption of advanced technologies such as air-side economizers, glycol systems, and liquid cooling. Compliance with regulations, including emergency power and fire alarm systems, is also a major consideration. Data center expansion continues to be a priority, with variable refrigerant flow and chilled water systems gaining popularity for their energy efficiency.
Innovations in automation, access control, and CCTV systems are also transforming the market, while direct expansion cooling and transformer banks remain essential components. The integration of free cooling and adiabatic cooling systems is further enhancing energy savings, and circuit breakers ensure reliable power distribution. Overall, the market is dynamic and evolving, with a focus on optimizing energy usage, ensuring compliance, and improving security and efficiency.

How is this Data Center Mechanical Construction Industry segmented?

The industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Cooling solutions
  Rack
  Server rail kit
  Others


Type

  Air-based cooling
  Liquid-based cooling
  Hybrid cooling systems


Variant

  Hyperscale data centers
  Colocation data centers
  Enterprise data centers
  Edge data centers


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  APAC

    China
    India
    Japan


  South America

    Brazil


  Middle East and Africa

By Product Insights

The cooling solutions segment is estimated to witness significant growth during the forecast period. Data centers require efficient cooling solutions to manage the heat load generated by their IT equipment. Air-based cooling and liquid-based cooling are two primary cooling techniques used. Air-based cooling, a traditional method, utilizes air as a cooling medium. CRAC units, such as air conditioners, air economizers, air-based chiller units, and air-cooled self-contained systems, are commonly used in data centers for air-based cooling. HVAC systems, including air handling units and airflow management, are integral components of infrastructure that support air-based cooling. Liquid-based cooling, on the other hand, uses water or other liquids as a cooling medium. Project management, sustainability, energy efficiency, and renewable energy sources are key considerations for these projects

This method is gaining popularity in large-scale, hyperscale centers due to its higher energy efficiency. Precision cooling, which is a type of liquid-based cooling, ensures optimal temperature and humidity levels for IT equipment. Design plays a crucial role in cooling efficiency. Construction management and project management are essential in implementing energy-efficient cooling systems during the planning and building stages. Commissioning and monitoring ensure

South Africa Data Center Rack Market size was valued at USD 50.6 Million in 2024 and is expected to reach USD 101.8 Million by 2032, growing at a CAGR of 9.1% from 2026-2032.

South Africa Data Center Rack Market Drivers

1. Quick Digital Transformation and Cloud Adoption One of the main drivers is the growing need for cloud services in industries like telecom, finance, and government. Businesses like Huawei Cloud have grown, now serving more than 1,000 customers and helping the cloud market grow at a predicted 26% CAGR between 2023 and 2028. Data center rack demand is increased as a result of this surge, which calls for scalable infrastructure.​

2. Growth of Fiber and 5G Networks The introduction of fiber-to-the-home/business (FTTH/B) services and 5G technology is improving connection, which raises data usage. As data centers grow, more rack installations are required, which is supported by this expansion. ​

3. Government Programs and the Construction of Infrastructure A favorable climate for data center expansion is being created by government initiatives to improve IT infrastructure and encourage digital transformation. The need for data center racks is rising as a result of these activities, which are drawing investments and promoting the construction of new data centers.

Discover the booming African construction industry! This market analysis reveals a $58.28B market in 2025, projected to grow at a 4.83% CAGR through 2033. Explore key drivers, trends, and regional insights, including leading companies and investment opportunities. Recent developments include: December 2023: Leading renewable energy provider Scatec ASA closed the first 60 MW of the Mmadinare 120 MW Solar Complex and announced that it was on track for the start of construction of the first utility-scale solar project in Botswana.November 2023: Teraco, South Africa’s largest data center provider, completed an expansion of its Durban facility, bringing the total area of space to 5,800 sq. m (62,430 sq. ft). Teraco’s Durban facility opened in 2011, providing 1 MW across 600 sq. m (6,460 sq. ft). In 2018, another expansion was announced, adding 1,000 sq. m (10,765 sq. ft) of white space to the site, bringing the total space to 2,000 sq. m (21,530 sq. ft).. Key drivers for this market are: 4., Rapid Urbanization Driving the Market4.; Economic Development. Potential restraints include: 4., Rapid Urbanization Driving the Market4.; Economic Development. Notable trends are: Infrastructure Construction Projects Driving the Market.