Africa is often described as a continent of potential - a promise waiting to be realised.
Too frequently, however, that promise is framed in cautious tones, as though Africa’s story is one of delays, deficits, and deferred returns.
Look beyond that narrative, and a different reality emerges. A powerful digital transformation is underway. Across the continent, digital infrastructure – particularly data centres - is quietly reshaping the investment landscape. Africa is not waiting for the future; it is building it.
Several structural forces are converging to accelerate data centre deployment across Africa.
First, the continent has a vast and expanding addressable market. Tens of millions of new users come online each year, driven by:
- A predominantly mobile-first population
- Increased access to affordable smartphones
- Expanding 4G and 5G network coverage
- Growing consumption of data-intensive applications such as video streaming, fintech platforms, social media and gaming
Second, there is rising demand for locally hosted content and lower latency. As businesses digitise and consumers expect seamless digital experiences, proximity matters. Data processed closer to end users improves speed, reliability and regulatory compliance.
Third, the proliferation of fintech and digital payment platforms – including mobile money, digital banks and cross-border payment solutions – continues to expand the need for secure, resilient digital infrastructure.
Finally, connectivity is being materially enhanced by a new wave of subsea cable deployments, including projects such as 2Africa and Equiano. These cables are significantly increasing bandwidth capacity and lowering connectivity costs, strengthening the case for local data processing and storage.
Despite these tailwinds, Africa’s data centre footprint remains modest. The continent accounts for less than 1% of global data centre capacity, despite being home to more than 1.4 billion people. This imbalance is not a sign of failure - it represents opportunity.
Industry experts project that Africa’s installed capacity could triple by 2030, increasing from roughly 1.5–1.6 GW today to more than 4.5 GW over the next five years. Realising this growth will depend on continued investment in power infrastructure, regulatory clarity and skills development.
Within the landscape, South Africa stands as the leading hub, accounting for approximately 70% of Africa’s installed capacity. Rising cloud adoption, enterprise digitisation and sustained consumer demand for online services continue to drive new capacity requirements.
South Africans are among the world’s most active digital consumers, with some studies indicating average daily screen time exceeding nine hours.
Cloud and content providers are increasing their local presence to ensure network stability, lower latency and compliance with evolving data regulations.
Much has been written about the global race to deploy AI-enabled data centres, particularly in North America and Europe. Africa is not currently positioned as a leader in large-scale AI infrastructure build-outs – but this may prove to be an advantage.
As a later mover, the continent has the opportunity to learn from early adopters, avoiding capital misallocation into unproven technologies or inefficient designs. Africa’s digital build-out can be measured, strategic, resilient and commercially disciplined.
For investors, data centres present a rare blend of growth and income visibility. They are capital-intensive assets with high barriers to entry, typically underpinned with long-term leases to high-quality counterparties. This combination can produce durable, predictable cash flows well suited to institutional investors seeking to match long-term liabilities.
As the backbone of the modern digital economy, data centres have evolved into critical infrastructure. They underpin financial systems, healthcare networks, education platforms, communications and commerce.
Challenges remain. Refinance risk, lease renewal risk, data sovereignty requirements, power availability constraints and evolving AI-driven demand patterns must be carefully managed. These are real considerations requiring rigorous structuring, due diligence and operational oversight.
Yet these same complexities define the opportunity. Africa’s relative lack of legacy infrastructure provides a blank slate. The continent can build modern, energy-efficient and resilient facilities from the ground up, rather than retrofitting outdated systems.
The idea that Africa is “behind” is outdated.
In digital infrastructure, the continent is not chasing global markets - it is selectively choosing where and how to build. Value lies in assets that underpin the modern economy, generate long-term cash flows and enable strategic growth.
At Old Mutual Alternative Investments, we focus on transforming this growth story into investable, resilient assets. By structuring private capital solutions across digital infrastructure, partnering with credible operators and aligning financing with long-lease cash flows, we aim to deliver durable income while supporting essential infrastructure development.
Africa’s digital leap is not a slogan. It is a structural shift. With disciplined capital deployment and strategic partnerships, the continent’s expanding digital economy can translate into tangible infrastructure, sustainable jobs and long-term returns.
The foundations are being laid. The opportunity is real.