South Africa Artificial Intelligence (AI) Data Center Market Size and Share
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Market Size (2025) | USD 78.85 Million |
| Market Size (2030) | USD 483.5 Million |
| CAGR (2025 - 2030) | 43.72% |
| Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
South Africa Artificial Intelligence (AI) Data Center Market Analysis by Mordor Intelligence
The South Africa Artificial Intelligence Data Center Market size is estimated at USD 78.85 million in 2025, and is expected to reach USD 483.5 million by 2030, at a CAGR of 43.72% during the forecast period (2025-2030).
South Africa is playing a key role in Africa's AI development. The country is positioned as one of the computational hubs across the continent, with its infrastructure and initiatives focused on addressing the AI equity gap. South Africa's contributions to advancing AI capabilities are expected to support regional development and innovation.
Efforts from various stakeholders are driving Africa’s evolving AI ecosystem. From GPU clusters to renewable energy powering data centers, the continent is making measurable progress. South Africa-based Deep Learning Indaba’s involvement in the Task Force reflects the G20 Presidency’s focus on fostering actionable outcomes across Africa by 2025. Additionally, UNDP’s Every Languages Matter report, co-authored with the University of Ghana, highlights the importance of supporting community-led initiatives to develop datasets for African low-resource languages. Integrating these datasets into AI systems is particularly important in addressing challenges related to low literacy and limited connectivity.
Investments in AI infrastructure are advancing, with collaborations, for instances, in March 2025, the partnership between Cassava Technologies and Nvidia. This initiative aims to establish Africa's first "artificial intelligence factory," utilizing Nvidia's supercomputers to strengthen AI infrastructure. These developments are expected to impact industrial value chains and contribute to economic activities, involving both private enterprises and start-ups.
South Africa is expected to see continued growth in AI data center development, driven by increasing demand for computational power and data storage. The country’s focus on renewable energy integration and advanced infrastructure positions it as a strategic location for AI data centers. Future trends indicate a rise in public-private partnerships and investments aimed at expanding data center capacity to support AI-driven applications across industries.
South Africa Artificial Intelligence (AI) Data Center Market Trends and Insights
Expansion of advanced computational infrastructure in southern Africa
As the adoption of artificial intelligence (AI) continues to grow globally, South Africa is positioning itself as a regional hub for advanced computational facilities. These facilities are specifically designed to handle high-volume computing, big data, and AI workloads, which are critical for processing complex models. Applications such as generative AI, natural language processing, and advanced machine learning require substantial computational power and efficient data access, making these data centers indispensable for supporting AI-driven innovation.
Huawei Cloud, a pioneer in the hyperscale data center market, established its South African data center in 2019. Since then, the company has experienced remarkable growth, with its business expanding 16-fold by 2024. The data center currently supports over 1,000 enterprises, including key players in banking, logistics, and healthcare. By offering AI, machine learning, and data analytics tools through its Johannesburg region, Huawei Cloud has become a vital enabler for businesses seeking to leverage advanced technologies to enhance their operations.
Through its "Everything as a Service" (XaaS) strategy, Huawei Cloud continues to democratize access to AI and data center technologies for local enterprises and public sector organizations. This approach ensures that businesses of all sizes can benefit from cutting-edge solutions, fostering innovation and growth across various industries. By providing scalable and efficient AI infrastructure, Huawei Cloud is playing a pivotal role in advancing South Africa's digital transformation and strengthening its position in the global AI ecosystem.
Integration of Renewable Energy in Data Centers
South Africa’s ongoing energy crisis and global push toward sustainability have prompted AI data center providers to rapidly integrate renewable energy sources like solar and wind. These green initiatives are not only environmentally friendly but also help mitigate power instability caused by frequent load shedding. Data centers, being energy-intensive, are adopting long-term strategies to reduce carbon footprints and ensure operational continuity.
Africa Data Centres (ADC), a major player in the continent’s digital infrastructure, announced a 20-year solar energy deal in 2024. A solar farm being developed in the Free State province will supply clean power to ADC’s facilities in Cape Town. The goal is to decouple from the national grid and ensure a stable power supply for AI and cloud operations. ADC plans to extend this model to its Johannesburg data centers by 2025, helping clients like fintechs and SaaS companies achieve energy resilience.
Teraco, South Africa’s largest carrier-neutral data center provider, is constructing a 120 MW solar plant and an 80 MW wind farm to support its hyperscale facilities. These renewable projects, expected to be completed by late 2025, aim to power Teraco’s growing Johannesburg and Cape Town campuses. The company is working with Eskom and independent producers to create a sustainable AI and cloud ecosystem, benefiting clients like AWS and enterprise businesses that host AI workloads.
Competitive Landscape
South Africa's AI data center market is advancing at a rapid pace, driven by increasing demand for advanced digital infrastructure to support artificial intelligence (AI), cloud computing, and other emerging technologies. Key players in this market include global giants such as Intel Corporation, Microsoft, NVIDIA Corporation, IBM Corporation, and Cisco Systems Inc. These companies are actively investing in expanding data center capacities, leveraging cutting-edge technologies to meet the growing needs of AI-driven applications and cloud services. The market's growth is further bolstered by the South African government's initiatives, which aim to enhance AI capabilities and foster innovation within the country. Together, these factors position South Africa as a significant player in the global AI data center landscape, with robust growth prospects in the coming years.
NVIDIA Corporation is set to revolutionize the AI data center landscape by 2025 with its advanced AI computing technologies. The company is actively collaborating with global partners to deploy cutting-edge GPU-based supercomputers, enabling faster AI model training and advanced inference capabilities. These efforts aim to support the growing demand for AI-driven applications and cloud services across industries. NVIDIA's initiatives are expected to play a pivotal role in shaping the future of AI data centers, fostering innovation, and driving productivity growth worldwide.
South Africa Artificial Intelligence (AI) Data Center Industry Leaders
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Intel Corporation
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Microsoft
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NVIDIA Corporation
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IBM Corporation
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Cisco Systems Inc.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- March 2025: Microsoft has announced plans to invest ZAR 5.4 billion (USD 298.6m) in AI infrastructure in South Africa by 2027, building on the ZAR 20.4 billion (USD 1.13bn) already invested over the past three years to establish data centers in Johannesburg and Cape Town. In February 2024, the company revealed plans for a new data center campus in Centurion, South Africa, further expanding its AI capabilities in the region.
- November 2024: South African data center operator Teraco has secured an 8 billion rand (USD 442 million) syndicated loan from Absa and other financial institutions for a new data center and renewable energy projects, the company said on Wednesday. Teraco, owned by Digital Realty, stated that the loan would also be used to finance other construction projects and its renewable energy generation program, which includes a 120-megawatt utility-scale solar PV generation plant. The growing demand for AI-driven technologies has further emphasized the need for robust energy infrastructure, prompting increased investments in electricity generation.
South Africa Artificial Intelligence (AI) Data Center Market Report Scope
The research encompasses the full spectrum of AI applications in data centers, covering hyperscale, colocation, enterprise, and edge facilities. The analysis is segmented by component, distinguishing between hardware and software. Hardware considerations include power, cooling, networking, IT equipment, and more. Software technologies under scrutiny encompass machine learning, deep learning, natural language processing, and computer vision. The study also evaluates the geographical distribution of these applications.
Additionally, it assesses AI's influence on sustainability and carbon neutrality objectives. A comprehensive competitive landscape is presented, detailing market players engaged in AI-supportive infrastructure, encompassing both hardware and software utilized across various AI data center types. Market size is calculated in terms of revenue generated by products and solutions providers in the market, and forecasts are presented in USD Billion for each segment.
| By Data Center Type | CSP Data Centers | ||
| Colocation Data Centers | |||
| Others (Enterprise and Edge) | |||
| By Component | Hardware | Power | |
| Cooling | |||
| IT Equipments | |||
| Others | |||
| Software Technology | Machine Learning | ||
| Deep Learning | |||
| Natural Language Processing | |||
| Computer Vision | |||
| Services - (Managed Services, Proffesional Services, etc) | |||
| CSP Data Centers |
| Colocation Data Centers |
| Others (Enterprise and Edge) |
| Hardware | Power |
| Cooling | |
| IT Equipments | |
| Others | |
| Software Technology | Machine Learning |
| Deep Learning | |
| Natural Language Processing | |
| Computer Vision | |
| Services - (Managed Services, Proffesional Services, etc) |
Key Questions Answered in the Report
How big is the South Africa Artificial Intelligence Data Center Market?
The South Africa Artificial Intelligence Data Center Market size is expected to reach USD 78.85 million in 2025 and grow at a CAGR of 43.72% to reach USD 483.5 million by 2030.
What is the current South Africa Artificial Intelligence Data Center Market size?
In 2025, the South Africa Artificial Intelligence Data Center Market size is expected to reach USD 78.85 million.
Who are the key players in South Africa Artificial Intelligence Data Center Market?
Intel Corporation, Microsoft, NVIDIA Corporation, IBM Corporation and Cisco Systems Inc. are the major companies operating in the South Africa Artificial Intelligence Data Center Market.
What years does this South Africa Artificial Intelligence Data Center Market cover, and what was the market size in 2024?
In 2024, the South Africa Artificial Intelligence Data Center Market size was estimated at USD 44.38 million. The report covers the South Africa Artificial Intelligence Data Center Market historical market size for years: 2019, 2020, 2021, 2022, 2023 and 2024. The report also forecasts the South Africa Artificial Intelligence Data Center Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
South Africa Artificial Intelligence (AI) Data Center Industry Report
Statistics for the 2025 South Africa Artificial Intelligence (AI) Data Center market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. South Africa Artificial Intelligence (AI) Data Center analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
