South Africa's data center colocation market is projected to grow at 12.09% CAGR through 2031, driven by cloud adoption, AI deployment, and enterprise digitalization. The market is expected to reach 2.07 million square feet of utilized area and 55.91 thousand rack units by 2031. Major operators including Teraco, Africa Data Centres, and Vantage Data Centers are expanding capacity, while power reliability and talent shortage remain key challenges.
Axe note: South Africa's data centre market is growing fast, driven by AI and cloud demand, but key risks remain.