Report Overview

Increasing digitalization, rising demand for cloud services, expanding mobile data usage, government initiatives for data localization, and growing investments from global tech companies driving the need for robust data infrastructure and storage solutions are expected to drive the expansion of South Africa Data Center Market during the forecast period between 2023 and 2029.

South Africa Data Center Market – Industry Trends & Forecast Report, 2029

South Africa data center market size was estimated at USD 1.85 billion in 2022. During the forecast period between 2023 and 2029, the size of South Africa data center market is projected to grow at a CAGR of 8.4% reaching a value of USD 3.25 billion by 2029. The adoption of cloud services is driving demand for data center infrastructure, with a focus on scalability and efficiency. The push for digital transformation has increased the need for colocation services and edge computing capabilities. Also, there's a growing emphasis on sustainability, leading to the implementation of green data center practices. As connectivity improves, the market is witnessing increased investment from both local and international players, fostering competition and innovation. Overall, the South Africa data center market is evolving to meet modern business requirements while addressing environmental concerns.

South Africa Data Center Market - Overview

A data center is a centralized facility that houses a network of computing resources, including servers, storage systems, networking equipment, and security devices. It is designed to store, process, manage, and distribute large volumes of data and applications for various purposes, such as cloud computing, business operations, and research. Data centers offer high levels of redundancy, cooling, and security to ensure uninterrupted operation. They play a crucial role in modern IT infrastructure, enabling businesses to efficiently manage and access digital information while supporting the growing demands of technology-driven services and applications.

Growth Drivers

Expanding Fiber Optic Network Fueling Market Growth

The rapid expansion of high-speed fiber optic networks in South Africa is a pivotal growth driver for the country's data center market. This infrastructure enhancement not only addresses historical connectivity challenges but also attracts domestic and international businesses seeking robust digital ecosystems. The increased bandwidth and reduced latency offered by these networks enable efficient data transmission, driving demand for data centers to store, process, and manage the burgeoning data flow. Thus, South Africa positions itself as a strategic hub for data-intensive industries, fostering economic growth and technological innovation.

Restraints

Energy Supply Challenges

The growth of South Africa data center market may be hindered by significant energy supply challenges. The country's unreliable power infrastructure and frequent load-shedding episodes pose a considerable risk to data center operations, leading to potential service disruptions, hardware damage, and increased operational costs. The need for a consistent and stable power supply to support the high energy demands of data centers remains a critical concern, impacting the industry's growth potential and deterring potential investors from fully capitalizing on the market's opportunities.

Impact of COVID-19 on South Africa Data Center Market

The South Africa data center market felt the impact of COVID-19 as restrictions slowed construction and supply chains. Yet, the growing reliance on digital services increased demand for data storage and processing, driving market expansion. Remote working and online activities surged, highlighting the importance of robust data infrastructure. The pandemic prompted businesses to enhance their digital capabilities, stimulating investment in data center facilities. As restrictions ease, the market is poised for further growth, with a heightened awareness of the need for resilient data management and storage systems in the face of future disruptions.

South Africa Data Center Market

Segmental Coverage

South Africa Data Center Market – By Type

Based on type, South Africa data center market is segmented into Colocation, Hyperscale, and Edge. The colocation segment is the largest contributor to the South Africa data center market. Colocation involves renting space, power, and cooling infrastructure to businesses for housing their IT equipment. The colocation facilities provide a shared environment where multiple companies can place their servers and networking equipment, benefiting from cost savings and efficient resource utilization. The Colocation segment has gained prominence due to its flexibility, scalability, and cost-effective solutions, making it the dominant player in the South Africa data center market.

South Africa Data Center Market – By Component

By component, South Africa data center market is split into Solution and Services segments. These segments encompass various offerings aimed at meeting the diverse needs of the industry. Solutions entail hardware, software, and infrastructure components, while Services encompass maintenance, support, consulting, and managed services. This division reflects the comprehensive approach taken to address the demands of the growing data center landscape in South Africa.

South Africa Data Center Market – By Organization Size

By organization size, South Africa data center market is bifurcated into Small & Medium-sized Enterprises (SMEs), and Large Enterprises segments. The segment encompassing large enterprises holds a higher significance. The large-scale businesses typically require substantial computing resources and storage capacities, driving the demand for advanced data center solutions. Their complex operations necessitate robust infrastructure for efficient data management, processing, and security. Therefore, the Large Enterprises segment plays a pivotal role in shaping the growth and development of the data center market within South Africa.

South Africa Data Center Market – By End User

Based on end user, South Africa data center market is divided into BFSI, IT & Telecom, Government, Energy & Utilities segments. The information technology (IT) & telecom segment is the largest end-user segment. With the growing digital transformation, IT companies and telecommunication providers require robust data center infrastructure to support their operations and expanding customer base. This segment encompasses a wide range of services, including cloud computing, data storage, and network connectivity. As the demand for seamless and high-speed communication intensifies, the IT & Telecom sector's reliance on data centers becomes pivotal. These facilities ensure efficient data processing, reduced latency, and reliable service delivery.

Competitive Landscape

Major players in the South Africa data center market include Teraco Data Environments, Internet Solutions (a division of Dimension Data), Liquid Telecom, EOH Data Center, Vox Telecom, MTN Business Data Centre, Hetzner South Africa, Africa Data Centres, Axxess Data, and DataProphet. To grow their market share, these companies are also focusing on investing in innovations, collaborations, and expansions.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2022
	Base Year – 2022
	Estimated Year – 2023
	Forecast Period – 2023–2029
Facts Covered	Revenue in USD Billion
Market Coverage	South Africa
Product/ Service Segmentation	Type, Component, Organization Size, End User
Key Players	Teraco Data Environments, Internet Solutions (a division of Dimension Data), Liquid Telecom, EOH Data Center, Vox Telecom, MTN Business Data Centre, Hetzner South Africa, Africa Data Centres, Axxess Data, DataProphet

 

By Type

• Colocation

• Hyperscale

• Edge

By Component

• Solution

• Services

By Organization Size

• Small & Medium-sized Enterprises (SMEs)

• Large Enterprises

By End User

• BFSI

• IT & Telecom

• Government

• Energy & Utilities

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. South Africa Data Center Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Increasing demand for cloud services and digital transformation.
         2. Growth of internet connectivity and data consumption.
         3. Adoption of emerging technologies like IoT and AI.
      2. Restraints
         1. Infrastructure challenges, such as power shortages and connectivity issues.
         2. Economic instability and currency fluctuations impact investments.
      3. Opportunities
         1. Untapped regions or industries with potential for expansion.
         2. Growing demand for edge computing facilities.
      4. Challenges
         1. Infrastructure limitations affect reliable operations.
         2. Skills shortage in data center management and advanced IT expertise
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. South Africa Data Center Market Overview
   1. Market Size & Forecast, 2019–2029
      1. By Value (USD Million)
   2. Market Share & Forecast
      1. By Type
         1. Colocation
         2. Hyperscale
         3. Edge
         4. Others
      2. By Component
         1. Solution
         2. Services
      3. By Organization Size
         1. Small & Medium-sized Enterprises (SMEs)
         2. Large Enterprises
      4. By End User
         1. BFSI
         2. IT & Telecom
         3. Government
         4. Energy & Utilities
         5. Others
5. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. South Africa Data Center Company Market Share Analysis, 2022
   3. Competitive Benchmarking, By Operating Parameters
   4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
6. Impact of Covid–19 on South Africa Data Center Market
7. Company Profile (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Teraco Data Environments
   2. Internet Solutions (a division of Dimension Data)
   3. Liquid Telecom
   4. EOH Data Center
   5. Vox Telecom
   6. MTN Business Data Centre
   7. Hetzner South Africa
   8. Africa Data Centres
   9. Axxess Data
   10. DataProphet
   11. Other Prominent Players
8. Key Strategic Recommendations
9. Research Methodology
   1. Qualitative Research
      1. Primary & Secondary Research
   2. Quantitative Research
   3.  Market Breakdown & Data Triangulation
      1.  Secondary Research
      2.  Primary Research
   4.  Breakdown of Primary Research Respondents, By Region
   5.  Assumptions & Limitations

 

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

 

List of Figures

 

Figure 1       South Africa Data Center Segmentation       

Figure 2       South Africa Data Center Market Value Chain Analysis     

Figure 3       Company Market Share Analysis, 2022

Figure 4       South Africa Data Center Market Size, By Value (USD Billion), 2019–2029     

Figure 5       South Africa Data Center Market Share, By Type, By Value, 2019–2029

Figure 6       South Africa Data Center Market Share, By Component, By Value, 2019–2029         

Figure 7       South Africa Data Center Market Share, By Organization Size, By Value, 2019–2029 

Figure 8       South Africa Data Center Market Share, By End User, By Value, 2019–2029  

 

List of Tables

 

Table 1        South Africa Data Center Market Size, By Value (USD Billion), 2019–2029

Table 2        South Africa Data Center Market Size, By Type, By Value, 2019–2029

Table 3        South Africa Data Center Market Size, By Component, By Value, 2019–2029

Table 4        South Africa Data Center Market Size, By Organization Size, By Value, 2019–2029

Table 5        South Africa Data Center Market Size, By End User, By Value, 2019–2029

Table 6        Teraco Data Environments Company Overview

Table 7        Teraco Data Environments Financial Overview

Table 8        Internet Solutions (a division of Dimension Data) Company Overview

Table 9        Internet Solutions (a division of Dimension Data) Financial Overview

Table 10      Liquid Telecom Company Overview

Table 11      Liquid Telecom Financial Overview

Table 12      EOH Data Center Company Overview

Table 13      EOH Data Center Financial Overview

Table 14      Vox Telecom Company Overview

Table 15      Vox Telecom Financial Overview

Table 16      MTN Business Data Centre Company Overview

Table 17      MTN Business Data Centre Financial Overview

Table 18      Hetzner South Africa Company Overview

Table 19      Hetzner South Africa Financial Overview

Table 20      Africa Data Centres Company Overview

Table 21      Africa Data Centres Financial Overview

Table 22      Axxess Data Company Overview

Table 23      Axxess Data Financial Overview

Table 24      DataProphet Company Overview

Table 25      DataProphet Financial Overview

Table 26      Other Prominent Players Company Overview

Table 27      Other Prominent Players Financial Overview