Study Period | 2018 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Volume (2025) | 501.1 MW |
Market Volume (2030) | 962.4 MW |
CAGR | 13.94 % |
Market Concentration | High |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
South Africa Data Center Market Analysis
The South Africa Data Center Market size is estimated at 501.1 MW in 2025, and is expected to reach 962.4 MW by 2030, growing at a CAGR of 13.94%. Further, the market is expected to generate colocation revenue of USD 471 Million in 2025 and is projected to reach USD 1,103.3 Million by 2030, growing at a CAGR of 18.56% during the forecast period (2025-2030).
South Africa's data center landscape is undergoing rapid digital transformation, driven by evolving consumer behavior and technological advancement. The financial services sector has witnessed unprecedented digital adoption, with Mastercard's New Payments Index revealing that 95% of South Africans utilized digital payment methods in 2022. The shift toward digital transactions is further evidenced by the fact that 67% of consumers made online purchases and 66% conducted transactions through mobile apps during Q2 and Q3 of 2022. This digital transformation has created a robust ecosystem for financial technology innovation, particularly in areas such as digital banking, cryptocurrency operations, and real-time payment systems.
The market is experiencing a significant shift in data center infrastructure preferences, with a clear trend toward higher-tier data center facilities. Traditional Tier 1 and 2 facilities are seeing declining demand as businesses increasingly require uninterrupted 24/7 service capabilities. Tier 4 data centers are positioned for substantial growth, with an expected expansion rate of 20.41%, while Tier 3 facilities are projected to grow at 12.87%. This transformation reflects the market's maturation and increasing sophistication, as organizations prioritize reliability and operational excellence in their data center strategies.
Major industry players are actively expanding their presence through significant infrastructure investments. In December 2022, Equinix announced a USD 160 million investment in the Johannesburg data center, with plans to open new facilities by mid-2024. Vantage Data Centers is developing a second campus (JNB2) in Johannesburg, featuring a 20 MW, 355,000 sq. ft two-story data center scheduled for completion in mid-2024. Africa Data Centers is also expanding its footprint with plans to construct data centers with a cumulative IT load capacity of 35.5 MW, demonstrating the market's robust growth trajectory.
The industry is increasingly focusing on sustainable operations and energy efficiency initiatives. The South African government's Renewable Energy Independent Power Producer Procurement Programme has facilitated the allocation of over 6,000 MW of renewable energy projects, primarily in wind and solar sectors. In February 2022, the government launched a 300 MW renewable energy program and proposed converting three coal-fired reactors into gas-burning generators. These initiatives align with the industry's growing emphasis on environmental responsibility and operational efficiency, as data center operators seek to balance expanding capacity with sustainable practices.
South Africa Data Center Market Trends
The growing average data volume per subscription and the rising subscription numbers for smartphones to boost market growth
- The total data traffic per smartphone in the country was 3.6 GB in 2022, and it is expected to witness a CAGR of 24.8% during the forecast period to reach a value of 17.2 GB by 2029.
- In South Africa, 35% of consumer internet traffic was mobile in 2017, and 56% of consumer internet traffic is expected to be mobile by 2022 due to the consumption of data by multiple end users. For instance, in 2022, online retail in South Africa reached 35%, bringing the total amount of online retail in South Africa to SAR 55 billion. This followed a 40% increase in 2021, which brought the amount to SAR 42.3 billion.
- The growing average data volume per subscription and the rising subscription numbers for smartphones of which are predominantly driven by a rise in video content consumption. For instance, video content exceeds half of South Africa's consumer internet traffic by the end of 2016. By 2022, it reached 50 billion minutes of video content across the Internet each month, which is 19,182 minutes of video streamed or downloaded every second, as most of the video content is streaming through smartphones only.
- Since the needs of the end-users are changing and the need for more data storage is resulting in the need for more servers in the data centers. Thus, contributing to the growth of the data center market in South Africa. Because end users' expectations are evolving and there is a growing demand for greater data storage, data centers require additional servers, hence, contributing to the expansion of South Africa’s data center market.
Increasing mobile data subscriptions, adoption of internet and rising use of smartphone to boost market growth
- The total number of smartphone users in the country was 25.5 million in 2022 and is expected to witness a CAGR of 4.7% during the forecast period to reach a value of 35.2 million by 2029.
- Digital usage is expanding rapidly in South Africa. Consumer behavior has been impacted by the quick adoption of the internet and smartphone technology in various businesses. For instance, Smartphone penetration in South Africa went from 81.7% in 2018 to 91.2% in 2019.
- Mobile data subscriptions increased by 18.8%, from 65 million in 2018 to 78 million in 2019. Over five years, there was a 13.9% growth. This suggests a rise in number of smartphone users.
- At the start of 2022, there were 108.6 million cellular mobile connections in South Africa, which is equivalent to 179.8% of its population.
- The rising use of smartphones results in a constant increase in data, necessitating a growing amount of storage space to accommodate this uncontrollable flow of data. South Africa's market's preference for smartphones necessitates the expansion of data centers' capabilities in order to handle the increase in data. Smartphones generate a lot of data, which necessitates real-time processing and analysis. The data centers must manage the sheer amount of data. Thus, the requirement for extra racks in South African data centers may increase as the number of smartphone users rises.
OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Adoption of 5G network and increase 5G connections to boost market growth
- To promote digitization the government launched the South Africa Connect (SA Connect) initiative boosting market growth
- Increase FTTH/B subscriptions and fixed internet speeds in South Africa to boost market growth
Segment Analysis: By Data Center Size
Massive Segment in South Africa Data Center Market
The massive data center segment dominates the South African data center market, accounting for approximately 54% of the total IT load capacity in 2024, with a volume of around 234.57 MW. This segment is also experiencing the fastest growth trajectory, expected to grow at nearly 19% during 2024-2029, driven by increasing demand for large-scale facilities. Major providers like Teraco Data Environments (Digital Realty) and Digital Parks Africa (Pty) Ltd are leading this segment with IT load capacities of 104 MW and 15 MW respectively. The segment's dominance is further reinforced by ongoing construction projects, with Teraco Data Environments (Digital Realty), Africa Data Centers, and Vantage Data Centers actively developing massive-size DC facilities. The growth is primarily attributed to the rising adoption of cloud services, increasing data consumption, and the expanding digital infrastructure needs of large enterprises in South Africa.

Remaining Segments in Data Center Size Market
The large data center segment maintains a significant presence in the market, with several established facilities operated by key players like Teraco Data Environments (Digital Realty), Open Access, and Business Connexion (Pty) Ltd. The medium-sized segment serves as a crucial intermediate option for businesses requiring moderate capacity, with seven operational facilities across the country. The small data center segment, while having a limited market presence, continues to serve specific niche requirements and local business needs. The mega data center segment currently shows no active facilities in South Africa, as providers are primarily focusing their investments on massive and large data centers to meet the market's current demands and growth patterns.
Segment Analysis: By Tier Type
Tier 3 Segment in South Africa Data Center Market
The Tier 3 segment dominates the South African data center market, accounting for approximately 63% of the total IT load capacity in 2024. This significant market share is driven by the growing adoption among small and medium enterprises (SMEs) across the region, who prefer Tier 3 facilities for their reliable infrastructure and cost-effective operations. Major operators like Teraco Data Environments (Digital Realty) and Open Access are leading the Tier 3 segment with IT load capacities of 150 MW and 20 MW respectively. The segment's prominence is further reinforced by ongoing construction projects in key locations such as Johannesburg and Cape Town, where providers like Teraco Data Environments, Open Access, and NTT Ltd are expanding their Tier 3 facilities to meet the increasing demand for wholesale data center services.
Tier 4 Segment in South Africa Data Center Market
The Tier 4 segment is experiencing the most rapid growth in the South African data center market, with a projected growth rate of approximately 20% during 2024-2029. This accelerated growth is primarily driven by the increasing demand for hyperscale facilities and the need for high redundancy and consistent performance with minimal downtime. Business Connexion (Pty) Ltd and Africa Data Centers are currently the prominent providers of Tier 4 facilities, with IT load capacities of 13 MW and 33.5 MW respectively. The segment's expansion is further supported by major construction initiatives from industry leaders such as Africa Data Centers, Vantage Data Centers, and Equinix, who are investing in new Tier 4 facilities to meet the growing demand for fault-tolerant data center infrastructure.
Remaining Segments in Tier Type
The Tier 1 and Tier 2 facilities represent a small portion of the South African data center market, as these lower-tier facilities are gradually losing relevance due to their inability to meet the growing demands for uninterrupted services. Most colocation data centers are now being developed under higher tier standards to ensure better reliability and performance. The limited adoption of Tier 1 and 2 facilities is particularly noticeable among major industries such as BFSI and media & entertainment, who prefer higher tier facilities due to their growing acceptance of advanced technologies and the need for more robust infrastructure to support their digital transformation initiatives.
Segment Analysis: By Absorption
Utilized Segment in South Africa Data Center Market
The utilized segment dominates the South African data center market, accounting for approximately 65% of the total IT load capacity in 2024. This significant market share is driven by the increasing adoption of cloud services, growing digitalization across industries, and the rising demand from various end-users including telecom, BFSI, and media & entertainment sectors. The segment's dominance is further strengthened by the expanding presence of major colocation data center providers like Teraco Data Environments, Africa Data Centers, and WIOCC, who are actively expanding their facilities across key locations such as Johannesburg and Cape Town. The occupancy rate of data center facilities is showing steady improvement, indicating strong utilization trends, with expectations to reach nearly 78% by 2029. This growth is supported by the increasing deployment of 5G networks, rising smartphone penetration, and the government's digital transformation initiatives that are creating substantial demand for data center services across South Africa.
Non-Utilized Segment in South Africa Data Center Market
The non-utilized segment represents the available capacity in South African data centers that is yet to be occupied by end-users. This segment plays a crucial role in the market by providing the necessary headroom for future expansion and ensuring that data centers can accommodate sudden spikes in demand. The segment's presence reflects the strategic approach of data center operators who maintain buffer capacity to support rapid scaling requirements of their clients. Data center providers are carefully managing their non-utilized capacity to maintain operational efficiency while ensuring they can meet the growing demands of both existing and potential clients. This approach allows them to offer flexible solutions to enterprises looking to expand their digital infrastructure while maintaining optimal resource utilization levels.
Segment Analysis: By Hotspot
South Africa Data Center Industry Overview
Top Companies in South Africa Data Center Market
The data center market in South Africa is characterized by significant infrastructure investments and strategic expansions by major players. Companies are focusing on developing carrier-neutral data centers with advanced cooling systems and sustainable designs to meet the growing demand for colocation services. Operators are increasingly adopting modular data center designs to reduce initial capital expenditure while maintaining scalability options. Strategic partnerships with cloud providers and telecommunications companies are becoming commonplace to enhance data center services offerings and market reach. The industry is witnessing a trend toward green data center initiatives, with companies implementing eco-friendly cooling systems and investing in renewable energy sources. Market leaders are also emphasizing the importance of obtaining international certifications and standards to strengthen their competitive position and attract global clients.
Market Dominated by Global-Local Partnership Model
The South African data center market exhibits a hybrid competitive structure where global players are establishing strong partnerships with local operators to leverage market expertise and existing infrastructure. The market is moderately consolidated, with established players holding significant market share through their extensive facility networks and comprehensive service portfolios. International data center operators are increasingly entering the market through acquisitions and joint ventures with local companies, bringing advanced technologies and global best practices to the region.
The competitive landscape is evolving with the emergence of new entrants focusing on specialized services and niche market segments. Major telecommunications companies are expanding their data center operations to capitalize on their existing network infrastructure and customer base. The market is witnessing strategic consolidation through mergers and acquisitions, particularly among mid-sized operators looking to achieve economies of scale and expand their geographical presence. Global hyperscale providers are also showing increased interest in the market, driving competition and innovation in service delivery.
Innovation and Sustainability Drive Future Success
Success in the South African data center market increasingly depends on operators' ability to provide scalable, energy-efficient solutions while maintaining high reliability standards. Companies need to focus on developing strong interconnection capabilities and diverse connectivity options to meet the growing demands of enterprise customers. The ability to offer flexible colocation solutions, coupled with value-added services such as cloud data center connectivity and managed services, will be crucial for market success. Operators must also invest in advanced security measures and maintain compliance with evolving data protection regulations to retain and attract customers.
Market players need to develop strong relationships with local utilities and government bodies to ensure reliable power supply and favorable operating conditions. The adoption of innovative cooling technologies and sustainable practices will become increasingly important for long-term success. Companies must also focus on developing a skilled local workforce through training programs and partnerships with educational institutions. The ability to provide customized data center solutions for specific industry verticals while maintaining cost competitiveness will be essential for market growth. Additionally, establishing strong partnerships with cloud service providers and content delivery networks will be crucial for capturing opportunities in the growing digital economy.
South Africa Data Center Market Leaders
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Business Connexion (Pty) Ltd
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Equinix Inc.
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NTT Ltd
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Teraco Data Environments (Digital Realty)
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Vantage Data Centers LLC
- *Disclaimer: Major Players sorted in no particular order
South Africa Data Center Market News
- December 2022: With a USD 160 million data center investment in Johannesburg, Equinix Inc., a provider of digital infrastructure, plans to expand its presence on the African continent beyond its current locations in Nigeria, Ghana, and Côte d'Ivoire. In mid-2024, the brand-new data center is anticipated to open in South Africa. JN1, a new 4.0 MW data center, is expected to offer more than 20,000 gross sq. ft of colocation space and 690+ cabinets. There will be two further phases of development. The fully completed 20.0 MW retail complex will offer more than 100,000 gross sq. ft of colocation space and 3,450+ cabinets.
- November 2022: A new hyperscale data center facility with a 30 MW critical power load construction began at Teraco's Isando Campus in Ekurhuleni, South Africa, east of Johannesburg. The JB5 plant will use the most up-to-date, eco-friendly cooling and water management designs, and it is expected to finish by 2024.
- August 2022: Digital Realty, a global supplier of cloud- and carrier-neutral data center, colocation, and interconnection solutions announced the successful acquisition of its previously announced deal to buy a majority interest in Teraco, a significant provider of carrier-neutral data centers and interconnection services in South Africa, from a group of investors that included Berkshire Partners and Permira. Teraco was valued at about approximately USD 3.5 billion in the transaction.
Free With This Report
We provide a complimentary and exhaustive set of data points on the country and regional level metrics that present the fundamental structure of the industry. Presented in the form of 50+ free charts, the sections cover difficult to find data on various countries on smartphone users, data traffic per smartphone, mobile and broadband data speed, fiber connectivity network, and submarine cables.
South Africa Data Center Market Report - Table of Contents
1. EXECUTIVE SUMMARY & KEY FINDINGS
2. REPORT OFFERS
3. INTRODUCTION
- 3.1 Study Assumptions & Market Definition
- 3.2 Scope of the Study
- 3.3 Research Methodology
4. MARKET OUTLOOK
- 4.1 It Load Capacity
- 4.2 Raised Floor Space
- 4.3 Colocation Revenue
- 4.4 Installed Racks
- 4.5 Rack Space Utilization
- 4.6 Submarine Cable
5. Key Industry Trends
- 5.1 Smartphone Users
- 5.2 Data Traffic Per Smartphone
- 5.3 Mobile Data Speed
- 5.4 Broadband Data Speed
- 5.5 Fiber Connectivity Network
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5.6 Regulatory Framework
- 5.6.1 South Africa
- 5.7 Value Chain & Distribution Channel Analysis
6. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2030 AND ANALYSIS OF GROWTH PROSPECTS)
-
6.1 Hotspot
- 6.1.1 Johannesburg
- 6.1.2 Rest of South Africa
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6.2 Data Center Size
- 6.2.1 Large
- 6.2.2 Massive
- 6.2.3 Medium
- 6.2.4 Small
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6.3 Tier Type
- 6.3.1 Tier 1 and 2
- 6.3.2 Tier 3
- 6.3.3 Tier 4
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6.4 Absorption
- 6.4.1 Non-Utilized
- 6.4.2 Utilized
- 6.4.2.1 By Colocation Type
- 6.4.2.1.1 Hyperscale
- 6.4.2.1.2 Retail
- 6.4.2.1.3 Wholesale
- 6.4.2.2 By End User
- 6.4.2.2.1 BFSI
- 6.4.2.2.2 Cloud
- 6.4.2.2.3 E-Commerce
- 6.4.2.2.4 Government
- 6.4.2.2.5 Manufacturing
- 6.4.2.2.6 Media & Entertainment
- 6.4.2.2.7 Telecom
- 6.4.2.2.8 Other End User
7. COMPETITIVE LANDSCAPE
- 7.1 Market Share Analysis
- 7.2 Company Landscape
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7.3 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
- 7.3.1 Africa Data Centres (Cassava Technologies)
- 7.3.2 Business Connexion (Pty) Ltd
- 7.3.3 Digital Parks Africa (Pty) Ltd
- 7.3.4 Equinix Inc.
- 7.3.5 MTN (PTY) LTD (MTN GROUP LTD)
- 7.3.6 NTT Ltd
- 7.3.7 RSAWEB
- 7.3.8 Teraco Data Environments (Digital Realty)
- 7.3.9 Vantage Data Centers LLC
- 7.3.10 WIOCC (Open Access Data Centres)
- 7.3.11 Xneelo (Pty) Ltd
- 7.4 LIST OF COMPANIES STUDIED
8. KEY STRATEGIC QUESTIONS FOR DATA CENTER CEOS
9. APPENDIX
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9.1 Global Overview
- 9.1.1 Overview
- 9.1.2 Porter’s Five Forces Framework
- 9.1.3 Global Value Chain Analysis
- 9.1.4 Global Market Size and DROs
- 9.2 Sources & References
- 9.3 List of Tables & Figures
- 9.4 Primary Insights
- 9.5 Data Pack
- 9.6 Glossary of Terms
List of Tables & Figures
- Figure 1:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AFRICA, 2018 - 2030
- Figure 2:
- VOLUME OF RAISED FLOOR AREA, SQ.FT. ('000), SOUTH AFRICA, 2018 - 2030
- Figure 3:
- VALUE OF COLOCATION REVENUE, USD MILLION, SOUTH AFRICA, 2018 - 2030
- Figure 4:
- VOLUME OF INSTALLED RACKS, NUMBER, SOUTH AFRICA, 2018 - 2030
- Figure 5:
- RACK SPACE UTILIZATION, %, SOUTH AFRICA, 2018 - 2030
- Figure 6:
- COUNT OF SMARTPHONE USERS, IN MILLION, SOUTH AFRICA, 2018 - 2030
- Figure 7:
- DATA TRAFFIC PER SMARTPHONE, GB, SOUTH AFRICA, 2018 - 2030
- Figure 8:
- AVERAGE MOBILE DATA SPEED, MBPS, SOUTH AFRICA, 2018 - 2030
- Figure 9:
- AVERAGE BROADBAND SPEED, MBPS, SOUTH AFRICA, 2018 - 2030
- Figure 10:
- LENGTH OF FIBER CONNECTIVITY NETWORK, KILOMETER, SOUTH AFRICA, 2018 - 2030
- Figure 11:
- VOLUME OF IT LOAD CAPACITY, MW, SOUTH AFRICA, 2018 - 2030
- Figure 12:
- VOLUME OF HOTSPOT, MW, SOUTH AFRICA, 2018 - 2030
- Figure 13:
- VOLUME SHARE OF HOTSPOT, %, SOUTH AFRICA, 2018 - 2030
- Figure 14:
- VOLUME SIZE OF JOHANNESBURG, MW, SOUTH AFRICA, 2018 - 2030
- Figure 15:
- VOLUME SHARE OF JOHANNESBURG, MW, HOTSPOT, %, SOUTH AFRICA, 2018 - 2030
- Figure 16:
- VOLUME SIZE OF REST OF SOUTH AFRICA, MW, SOUTH AFRICA, 2018 - 2030
- Figure 17:
- VOLUME SHARE OF REST OF SOUTH AFRICA, MW, HOTSPOT, %, SOUTH AFRICA, 2018 - 2030
- Figure 18:
- VOLUME OF DATA CENTER SIZE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 19:
- VOLUME SHARE OF DATA CENTER SIZE, %, SOUTH AFRICA, 2018 - 2030
- Figure 20:
- VOLUME SIZE OF LARGE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 21:
- VOLUME SIZE OF MASSIVE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 22:
- VOLUME SIZE OF MEDIUM, MW, SOUTH AFRICA, 2018 - 2030
- Figure 23:
- VOLUME SIZE OF SMALL, MW, SOUTH AFRICA, 2018 - 2030
- Figure 24:
- VOLUME OF TIER TYPE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 25:
- VOLUME SHARE OF TIER TYPE, %, SOUTH AFRICA, 2018 - 2030
- Figure 26:
- VOLUME SIZE OF TIER 1 AND 2, MW, SOUTH AFRICA, 2018 - 2030
- Figure 27:
- VOLUME SIZE OF TIER 3, MW, SOUTH AFRICA, 2018 - 2030
- Figure 28:
- VOLUME SIZE OF TIER 4, MW, SOUTH AFRICA, 2018 - 2030
- Figure 29:
- VOLUME OF ABSORPTION, MW, SOUTH AFRICA, 2018 - 2030
- Figure 30:
- VOLUME SHARE OF ABSORPTION, %, SOUTH AFRICA, 2018 - 2030
- Figure 31:
- VOLUME SIZE OF NON-UTILIZED, MW, SOUTH AFRICA, 2018 - 2030
- Figure 32:
- VOLUME OF COLOCATION TYPE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 33:
- VOLUME SHARE OF COLOCATION TYPE, %, SOUTH AFRICA, 2018 - 2030
- Figure 34:
- VOLUME SIZE OF HYPERSCALE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 35:
- VOLUME SIZE OF RETAIL, MW, SOUTH AFRICA, 2018 - 2030
- Figure 36:
- VOLUME SIZE OF WHOLESALE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 37:
- VOLUME OF END USER, MW, SOUTH AFRICA, 2018 - 2030
- Figure 38:
- VOLUME SHARE OF END USER, %, SOUTH AFRICA, 2018 - 2030
- Figure 39:
- VOLUME SIZE OF BFSI, MW, SOUTH AFRICA, 2018 - 2030
- Figure 40:
- VOLUME SIZE OF CLOUD, MW, SOUTH AFRICA, 2018 - 2030
- Figure 41:
- VOLUME SIZE OF E-COMMERCE, MW, SOUTH AFRICA, 2018 - 2030
- Figure 42:
- VOLUME SIZE OF GOVERNMENT, MW, SOUTH AFRICA, 2018 - 2030
- Figure 43:
- VOLUME SIZE OF MANUFACTURING, MW, SOUTH AFRICA, 2018 - 2030
- Figure 44:
- VOLUME SIZE OF MEDIA & ENTERTAINMENT, MW, SOUTH AFRICA, 2018 - 2030
- Figure 45:
- VOLUME SIZE OF TELECOM, MW, SOUTH AFRICA, 2018 - 2030
- Figure 46:
- VOLUME SIZE OF OTHER END USER, MW, SOUTH AFRICA, 2018 - 2030
- Figure 47:
- VOLUME SHARE OF MAJOR PLAYERS, %, SOUTH AFRICA
South Africa Data Center Industry Segmentation
Johannesburg are covered as segments by Hotspot. Large, Massive, Medium, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.Hotspot | Johannesburg | |||
Rest of South Africa | ||||
Data Center Size | Large | |||
Massive | ||||
Medium | ||||
Small | ||||
Tier Type | Tier 1 and 2 | |||
Tier 3 | ||||
Tier 4 | ||||
Absorption | Non-Utilized | |||
Utilized | By Colocation Type | Hyperscale | ||
Retail | ||||
Wholesale | ||||
By End User | BFSI | |||
Cloud | ||||
E-Commerce | ||||
Government | ||||
Manufacturing | ||||
Media & Entertainment | ||||
Telecom | ||||
Other End User |
Market Definition
- IT LOAD CAPACITY - The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipments placed in a rack installed. It is measured in megawatt (MW).
- ABSORPTION RATE - It denotes the extend to which the data center capacity has been leased out. For instance, a 100 MW DC has leased out 75 MW, then absorption rate would be 75%. It is also referred as utilization rate and leased-out capacity.
- RAISED FLOOR SPACE - It is an elevated space build over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assist in having proper wiring and cooling infrastructure. It is measured in square feet (ft^2).
- DATA CENTER SIZE - Data Center Size is segmented based on the raised floor space allocated to the data center facilities. Mega DC - # of Racks must be more than 9000 or RFS (raised floor space) must be more than 225001 Sq. ft; Massive DC - # of Racks must be in between 9000 and 3001 or RFS must be in between 225000 Sq. ft and 75001 Sq. ft; Large DC - # of Racks must be in between 3000 and 801 or RFS must be in between 75000 Sq. ft and 20001 Sq. ft; Medium DC # of Racks must be in between 800 and 201 or RFS must be in between 20000 Sq. ft and 5001 Sq. ft; Small DC - # of Racks must be less than 200 or RFS must be less than 5000 Sq. ft.
- TIER TYPE - According to Uptime Institute the data centers are classified into four tiers based on the proficiencies of redundant equipment of the data center infrastructure. In this segment the data center are segmented as Tier 1,Tier 2, Tier 3 and Tier 4.
- COLOCATION TYPE - The segment is segregated into 3 categories namely Retail, Wholesale and Hyperscale Colocation service. The categorization is done based on the amount of IT load leased out to potential customers. Retail colocation service has leased capacity less than 250 kW; Wholesale colocation services has leased capacity between 251 kW and 4 MW and Hyperscale colocation services has leased capacity more than 4 MW.
- END CONSUMERS - The Data Center Market operates on a B2B basis. BFSI, Government, Cloud Operators, Media and Entertainment, E-Commerce, Telecom and Manufacturing are the major end-consumers in the market studied. The scope only includes colocation service operators catering to the increasing digitalization of the end-user industries.
Keyword | Definition |
---|---|
Rack Unit | Generally referred as U or RU, it is the unit of measurement for the server unit housed in the racks in the data center. 1U is equal to 1.75 inches. |
Rack Density | It defines the amount of power consumed by the equipment and server housed in a rack. It is measured in kilowatt (kW). This factor plays a critical role in data center design and, cooling and power planning. |
IT Load Capacity | The IT load capacity or installed capacity, refers to the amount of energy consumed by servers and network equipment placed in a rack installed. It is measured in megawatt (MW). |
Absorption Rate | It denotes how much of the data center capacity has been leased out. For instance, if a 100 MW DC has leased out 75 MW, then the absorption rate would be 75%. It is also referred to as utilization rate and leased-out capacity. |
Raised Floor Space | It is an elevated space built over the floor. This gap between the original floor and the elevated floor is used to accommodate wiring, cooling, and other data center equipment. This arrangement assists in having proper wiring and cooling infrastructure. It is measured in square feet/meter. |
Computer Room Air Conditioner (CRAC) | It is a device used to monitor and maintain the temperature, air circulation, and humidity inside the server room in the data center. |
Aisle | It is the open space between the rows of racks. This open space is critical for maintaining the optimal temperature (20-25 °C) in the server room. There are primarily two aisles inside the server room, a hot aisle and a cold aisle. |
Cold Aisle | It is the aisle wherein the front of the rack faces the aisle. Here, chilled air is directed into the aisle so that it can enter the front of the racks and maintain the temperature. |
Hot Aisle | It is the aisle where the back of the racks faces the aisle. Here, the heat dissipated from the equipment’s in the rack is directed to the outlet vent of the CRAC. |
Critical Load | It includes the servers and other computer equipment whose uptime is critical for data center operation. |
Power Usage Effectiveness (PUE) | It is a metric which defines the efficiency of a data center. It is calculated by: (𝑇𝑜𝑡𝑎𝑙 𝐷𝑎𝑡𝑎 𝐶𝑒𝑛𝑡𝑒𝑟 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛)/(𝑇𝑜𝑡𝑎𝑙 𝐼𝑇 𝐸𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝐸𝑛𝑒𝑟𝑔𝑦 𝐶𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛). Further, a data center with a PUE of 1.2-1.5 is considered highly efficient, whereas, a data center with a PUE >2 is considered highly inefficient. |
Redundancy | It is defined as a system design wherein additional component (UPS, generators, CRAC) is added so that in case of power outage, equipment failure, the IT equipment should not be affected. |
Uninterruptible Power Supply (UPS) | It is a device that is connected in series with the utility power supply, storing energy in batteries such that the supply from UPS is continuous to IT equipment even during utility power is snapped. The UPS primarily supports the IT equipment only. |
Generators | Just like UPS, generators are placed in the data center to ensure an uninterrupted power supply, avoiding downtime. Data center facilities have diesel generators and commonly, 48-hour diesel is stored in the facility to prevent disruption. |
N | It denotes the tools and equipment required for a data center to function at full load. Only "N" indicates that there is no backup to the equipment in the event of any failure. |
N+1 | Referred to as 'Need plus one', it denotes the additional equipment setup available to avoid downtime in case of failure. A data center is considered N+1 when there is one additional unit for every 4 components. For instance, if a data center has 4 UPS systems, then for to achieve N+1, an additional UPS system would be required. |
2N | It refers to fully redundant design wherein two independent power distribution system is deployed. Therefore, in the event of a complete failure of one distribution system, the other system will still supply power to the data center. |
In-Row Cooling | It is the cooling design system installed between racks in a row where it draws warm air from the hot aisle and supplies cool air to the cold aisle, thereby maintaining the temperature. |
Tier 1 | Tier classification determines the preparedness of a data center facility to sustain data center operation. A data center is classified as Tier 1 data center when it has a non-redundant (N) power component (UPS, generators), cooling components, and power distribution system (from utility power grids). The Tier 1 data center has an uptime of 99.67% and an annual downtime of <28.8 hours. |
Tier 2 | A data center is classified as Tier 2 data center when it has a redundant power and cooling components (N+1) and a single non-redundant distribution system. Redundant components include extra generators, UPS, chillers, heat rejection equipment, and fuel tanks. The Tier 2 data center has an uptime of 99.74% and an annual downtime of <22 hours. |
Tier 3 | A data center having redundant power and cooling components and multiple power distribution systems is referred to as a Tier 3 data center. The facility is resistant to planned (facility maintenance) and unplanned (power outage, cooling failure) disruption. The Tier 3 data center has an uptime of 99.98% and an annual downtime of <1.6 hours. |
Tier 4 | It is the most tolerant type of data center. A Tier 4 data center has multiple, independent redundant power and cooling components and multiple power distribution paths. All IT equipment are dual powered, making them fault tolerant in case of any disruption, thereby ensuring interrupted operation. The Tier 4 data center has an uptime of 99.74% and an annual downtime of <26.3 minutes. |
Small Data Center | Data center that has floor space area of ≤ 5,000 Sq. ft or the number of racks that can be installed is ≤ 200 is classified as a small data center. |
Medium Data Center | Data center which has floor space area between 5,001-20,000 Sq. ft, or the number of racks that can be installed is between 201-800, is classified as a medium data center. |
Large Data Center | Data center which has floor space area between 20,001-75,000 Sq. ft, or the number of racks that can be installed is between 801-3,000, is classified as a large data center. |
Massive Data Center | Data center which has floor space area between 75,001-225,000 Sq. ft, or the number of racks that can be installed is between 3001-9,000, is classified as a massive data center. |
Mega Data Center | Data center that has a floor space area of ≥ 225,001 Sq. ft or the number of racks that can be installed is ≥ 9001 is classified as a mega data center. |
Retail Colocation | It refers to those customers who have a capacity requirement of 250 kW or less. These services are majorly opted by small and medium enterprises (SMEs). |
Wholesale Colocation | It refers to those customers who have a capacity requirement between 250 kW to 4 MW. These services are majorly opted by medium to large enterprises. |
Hyperscale Colocation | It refers to those customers who have a capacity requirement greater than 4 MW. The hyperscale demand primarily originates from large-scale cloud players, IT companies, BFSI, and OTT players (like Netflix, Hulu, and HBO+). |
Mobile Data Speed | It is the mobile internet speed a user experiences via their smartphones. This speed is primarily dependent on the carrier technology being used in the smartphone. The carrier technologies available in the market are 2G, 3G, 4G, and 5G, where 2G provides the slowest speed while 5G is the fastest. |
Fiber Connectivity Network | It is a network of optical fiber cables deployed across the country, connecting rural and urban regions with high-speed internet connection. It is measured in kilometer (km). |
Data Traffic per Smartphone | It is a measure of average data consumption by a smartphone user in a month. It is measured in gigabyte (GB). |
Broadband Data Speed | It is the internet speed that is supplied over the fixed cable connection. Commonly, copper cable and optic fiber cable are used in both residential and commercial use. Here, optic cable fiber provides faster internet speed than copper cable. |
Submarine Cable | A submarine cable is a fiber optic cable laid down at two or more landing points. Through this cable, communication and internet connectivity between countries across the globe is established. These cables can transmit 100-200 terabits per second (Tbps) from one point to another. |
Carbon Footprint | It is the measure of carbon dioxide generated during the regular operation of a data center. Since, coal, and oil & gas are the primary source of power generation, consumption of this power contributes to carbon emissions. Data center operators are incorporating renewable energy sources to curb the carbon footprint emerging in their facilities. |
Research Methodology
Mordor Intelligence follows a four-step methodology in all our reports.
- Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step-1 are tested against available historical market numbers. Through an iterative process, the variables required for market forecast are set and the model is built on the basis of these variables.
- Step-2: Build a Market Model: Market-size estimations for the forecast years are in nominal terms. Inflation is not a part of the pricing, and the average selling price (ASP) is kept constant throughout the forecast period for each country.
- Step-3: Validate and Finalize: In this important step, all market numbers, variables and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
- Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms