By Eamonn Ryan
Africa’s data centre market presents one of the world’s most compelling infrastructure opportunities.
ttendees at the conference.
© RACA Journal
Rapid digitalisation, expanding connectivity and growing demand for cloud services are attracting unprecedented levels of investment across the continent. Yet despite these opportunities, experienced operators continue to see many of the same mistakes repeated by new market entrants.
This was one of the key themes explored during a panel discussion at the Pan Africa Data Centre Conference & Exhibition titled ‘Why power infrastructure is a driving force for site selection across Africa’.
Moderated by Marlo Walters, technical director and data centre lead at WSP, the discussion brought together Marc Matthews, director of engineering at Open Access Data Centres (OADC), Julia Power, partner in commercial property at Bowmans, Thulani Ncube, an independent energy strategy consultant, and Heath Andersen of DC Design Africa. Perhaps the most significant mistake is assuming that African markets operate according to the same rules as Europe or North America.
Independent energy strategy consultant Thulani Ncube noted that discussions surrounding data centres in mature markets frequently focus on concerns that facilities consume excessive amounts of available grid capacity. In parts of Europe, this has even resulted in moratoria being imposed on new developments while utilities strengthen infrastructure.
Across much of Africa, however, the challenge is very different. The issue is seldom that there are too many data centres competing for available capacity. Rather, it is that sufficient infrastructure may not yet exist where developers wish to build. Investors arriving with assumptions based on mature markets are often surprised to discover that neither transmission capacity nor suitable utility infrastructure can be taken for granted.
Understanding local realities has therefore become a prerequisite for successful investment decisions. Power highlighted another common mistake – the tendency to underestimate the complexity of land rights, permitting processes and legal requirements.
Developers sometimes commit significant capital expenditure before confirming that zoning requirements can be satisfied, servitudes secured or historic title deed conditions appropriately addressed. Others underestimate the differences that exist between municipalities and assume that processes which proved successful in one African city will readily translate to another.
The consequences can be significant. Extended approval timelines may erode valuable speed-to-market advantages, while unresolved legal issues can ultimately undermine the bankability of projects.
Supply chain planning represents another area where new entrants frequently encounter difficulties. Drawing on his operational experience, Marc Matthews observed that developers often underestimate lead times for critical infrastructure including generators, switchgear, uninterruptible power supply systems and high-voltage equipment. Global demand for such equipment continues to place pressure on manufacturing capacity and delivery schedules.
In highly competitive markets, timing can determine commercial success. If a customer requires capacity within 12–18 months, but critical power infrastructure cannot be delivered within that timeframe, operators may lose valuable contracts to competitors that have already invested in powered white space or adopted build-ahead-of-demand strategies for their core infrastructure.
Andersen suggested that many of these challenges ultimately stem from ineffective capital allocation decisions. Developers can become overly focused on individual considerations such as land acquisition costs or sustainability messaging while neglecting equally important factors including customer demand profiles, modular design approaches and appropriate scaling strategies.
Striking the right balance between overbuilding and underbuilding remains one of the industry’s greatest challenges. Excessive upfront investment can leave valuable capital sitting idle, while insufficient capacity may result in missed commercial opportunities.
Importantly, Andersen acknowledged that even experienced operators occasionally misjudge these decisions. Flexibility, rather than perfection, should therefore remain the objective. Successful developments are those capable of scaling efficiently while accommodating changing customer requirements, evolving grid realities and shifting market conditions.
The panel’s overarching message was clear: power infrastructure in Africa cannot be treated as a technical problem to be solved once site selection has been completed.
It is a strategic consideration that influences virtually every aspect of a project’s success – from site selection and capital allocation to commercial models and relationships with utilities and regulators. Successful developments require deep local understanding, early multidisciplinary collaboration and realistic expectations regarding timelines, costs and risk.
Walters concluded the discussion by leaving the audience with an important question – one that applies equally to both established operators and new entrants to the market: how much weight does your power strategy carry in your site selection decision, and is that weighting aligned with African realities rather than simply global narratives?
For Africa’s next generation of data centres, the answer to that question may prove just as important as the technology deployed inside the facility itself.
