Tesh Durvasula, CEO of Africa Data Centres.

Amid the rapid evolution of the digital landscape, African economies find themselves at a crucial crossroads: they can either take advantage of the opportunities presented by investing in an inclusive digital economy, or risk lagging even further behind due to the apparent disparities in terms of infrastructure, technology, and skills. 

Bridging these gaps and facilitating digital development means enhancing every element of the digital ecosystem, and datacentres are the cornerstone of this opportunity, says Tesh Durvasula, CEO of Africa Data Centres, a business of Cassava Technologies group.

He says Africa has emerged as a hotspot for technological advancement in recent years, with its digital infrastructure experiencing a significant boom. One of the key drivers of this transformation is the rapid growth of cloud computing services across the continent. “As cloud adoption continues to soar, the demand for datacentres, the backbone of cloud infrastructure, has surged in tandem,” Durvasula adds.

He says the continent’s uptake of cloud computing has been nothing short of remarkable. With the proliferation of affordable smartphones and the expansion of high-speed internet connectivity, businesses and individuals alike are increasingly turning to cloud-based solutions for their computing needs.

“From multinational corporations to small and medium enterprises (SMEs), the benefits of cloud services, including scalability, flexibility, and cost-effectiveness are driving widespread adoption across various industries,” says Durvasula.

He adds that a crucial enabler of Africa’s cloud boom is the steady increase in internet penetration rates. While the continent still faces connectivity infrastructure and affordability challenges, concerted efforts by governments, private sector players, and international organisations have yielded significant results in expanding internet access.

A recent report by Statista claims that the number of internet users in Africa is forecast to continuously increase between 2024 and 2029 by a total of 377.3 million users. After the 15th consecutive year of increase, the number of users is estimated to reach 1.1 billion and, therefore, a new peak, in 2029. Various factors fuel this growth, including the deployment of undersea fiber-optic cables, the expansion

of mobile broadband networks, and the proliferation of affordable smartphones. As more people gain access to the internet, the potential user base for cloud services expands, driving demand for datacentre infrastructure to support these services.

A significant demand for cloud services is expected to come from Africa. Digital research consultancy Xalam Analytics has said the demand for cloud computing services in Africa is growing between 25% and 30% annually, underscoring the region’s immense potential in this space.

Furthermore, cloud usage statistics reveal a diverse array of applications and services being hosted on cloud platforms across Africa. From enterprise resource planning (ERP) systems and customer relationship management (CRM) software to data analytics and artificial intelligence (AI) solutions, entities in every sector are leveraging the cloud to drive innovation, enhance productivity, and gain a competitive edge in the digital economy.

The localisation of cloud services is becoming increasingly important in Africa, driven by regulatory requirements, data sovereignty concerns, and the need to reduce latency for users. This trend has led to the establishment of datacentres in key markets such as Nigeria, Kenya, South Africa, and Egypt, catering to the specific needs of local businesses and consumers.

“As Africa strives to bridge the digital divide and harness the transformative power of digital technologies, datacentres serve as the backbone of the digital ecosystem, providing the essential infrastructure needed to store, process, and manage vast amounts of data,” he says.

Datacentres enable businesses, governments, and individuals to leverage cloud computing services, facilitating innovation, driving economic growth, and improving access to essential services such as healthcare, education, and finance. They are critical in ensuring data security and compliance with regulatory requirements, fostering trust and confidence in digital technologies.

Durvasula says that despite the significant progress made in Africa’s cloud and datacentre space, several challenges still need to be addressed. These include infrastructure limitations, regulatory hurdles, cybersecurity risks, and skills shortages.

“Addressing these challenges will require collaboration between governments, industry stakeholders, and educational institutions to foster an enabling environment for digital innovation and investment. But alongside these challenges lie tremendous opportunities for growth and development.”

Adopting digital technologies plays a transformative role in addressing socio-economic challenges, such as access to healthcare, education, and financial services, contributing to inclusive growth and development across the continent.

Durvasula says as the continent continues its digital transformation journey, investing in robust and resilient datacentre facilities will be essential to supporting the burgeoning cloud ecosystem and unlocking the full potential of Africa’s digital economy.

“With the right policies, investments, and partnerships in place, Africa is poised to emerge as a global hub for cloud computing, driving innovation, economic growth, and social progress in the years to come.” 

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