Africa’s Emerging Role in Data Centers and AI

Experts suggest Africa could be the next major frontier for data centers and Artificial Intelligence (AI), as the Trump administration supports American businesses in establishing AI as the ‘gold standard’. With increasing environmental restrictions affecting data center development in the U.S., attention is shifting towards Africa’s untapped potential.

Abhishek Goyal, a consultant with Arizton Advisory & Intelligence, told Fox News Digital, “Africa is emerging as a significant potential location for building AI infrastructure. Many mature markets face environmental and power constraints, while Africa’s underdeveloped infrastructure is seen as an opportunity rather than a disadvantage.”

Rendering of U.S. company Cybastion’s projected data center in the Ivory Coast, West Africa. The U.S. Embassy in Abidjan facilitated a $170 million contract with the Ivory Coast government for the data center. Image credit: (Cybastion)

The U.S. aims to ensure that American AI-related infrastructure maintains a global standard and remains the preferred choice for governments and businesses upgrading their telecommunications networks and AI capabilities. This year, with U.S. backing, a $6.2 billion deal in Lesotho was secured for a data center and hydropower plant. Additionally, a $100 million contract for data centers and a gas-to-power plant in Gabon has been facilitated, despite strong competition from China.

Rendering of the Kobong, Lesotho Pumped Hydro project, to be constructed by U.S. company Convalt Energy as part of a $6.2 billion deal facilitated by the U.S. government. (Convalt Energy)

Under President Trump, the U.S. is actively assisting companies in discovering and expanding markets in Africa. Arthur Goldstuck, CEO of South African tech research group World Wide Worx, noted Africa’s data center expansion starts from a modest base, unable to replace global computing centers due to current capacity limitations.

Africa provides access to an underserved cloud and AI market, promising opportunities in areas like AI chips, cooling systems, cybersecurity, and power infrastructure. Data centers may become guaranteed customers for new renewable energy projects, offering further investment prospects.

Despite data center growth driven by local needs, Africa lags behind the U.S. and Europe in installed capacity. Weak electricity grids complicate operations, but demand is growing as governments and businesses seek local cloud services for storing sensitive information domestically.

Countries like South Africa, Kenya, Nigeria, Morocco, and Egypt are attracting significant AI projects. Undersea cable networks being built across the Atlantic are enhancing connectivity opportunities between the U.S. and Africa.

Although American companies can use undersea AI cables for connecting with African data centers, distance results in delays making it less attractive for immediate U.S. services. They can, however, serve well for backups, disaster recovery, and high-intensity AI processing.

The lack of regulation in Africa poses risks of unchecked business practices. South Africa claims to host 70% of the continent’s total data center capacity, but there is no public register of facilities nor disclosed resource usage, creating transparency issues.

Pitso Tsibolane from the University of Cape Town highlighted transparency gaps in South Africa, impacting communities and responsible operators alike. Establishing a transparent and predictable approval framework could benefit households, the grid, and long-term investors.

The prospect for Africa’s data center and AI infrastructure development appears promising. With abundant renewable energy potential and fast-growing digital economies, several African countries offer unique opportunities for advancement.

The Isando Campus, home to Teraco Data Environments JB1 East & West, JB3 and JB5 data centers in Johannesburg, South Africa. (Leon Sadiki/Bloomberg via Getty Images)

Paul Tilsley is a seasoned correspondent based in Johannesburg, South Africa. Follow him on X @paultilsley.