Bill Kleyman, Chief Executive Officer of Apolo and Program Chair of AFCOM and Data Center World, believes Africa is primed to become a key secondary market for data centers, presenting significant opportunities for investors. In his keynote address during the Hyperscalers Convergence Africa, “Artificial Intelligence in the Data Center: Understanding a New Market,” Kleyman highlighted that the global rise of colocation hyperscalers is driving substantial investment in advanced data center infrastructure across Africa. As hyperscalers expand their global footprint, they target regions with growing digital needs, which benefits Africa by improving local connectivity, internet services, and technological capabilities.
This influx of investment is not only creating high-quality jobs and stimulating local economies but also enhancing connectivity by reducing latency and making cloud services more accessible. As state-of-the-art technology and cost efficiencies are introduced to the region, African businesses gain improved access to cloud computing, AI, and other digital innovations, accelerating digital transformation. Furthermore, the presence of hyperscale data centers fosters the development of a robust digital ecosystem by attracting additional technology investments, improving data sovereignty, and addressing privacy concerns.
According to him, secondary markets, characterized by moderate data center supply ranging from 100 to 600 megawatts (MW), are becoming attractive to investors seeking opportunities in less saturated areas. Africa, with its expanding digital landscape and increasing demand for reliable internet access, fits this profile perfectly. The continent’s growing technology sector and the rising adoption of digital services make it a compelling case for data center investment. The development of data centers in these secondary markets stimulates local economies and drives technological advancement, contributing to overall economic growth.
Kleyman also discussed the impact of AI on power consumption in Africa, noting a significant increase in commercial data center power usage, which has been growing by 40% annually over the past five years. By 2026, data center power consumption is expected to reach nearly 8,000 GWh, growing by 20-25% annually. He emphasized the need for more efficient and sustainable power options, such as hydro, geothermal, and wind energy. Kenya is already capitalizing on its strong reputation for energy solutions, with significant investments from Microsoft and Dubai-based AI firm G42 in geothermal energy for a new data center in Olkaria, and IXAfrica Data Centres and Schneider Electric unveiling the AI-ready NBOX1 data center in Nairobi.
The recent U.S. Department of Energy’s outlook aligns with Kleyman’s view, highlighting a significant increase in electricity demand as the U.S. aims for net-zero emissions by 2050. The DOE anticipates that electricity demand will at least double, prompting a comprehensive approach involving clean energy technologies and grid modernization.
Africa is well-positioned to emerge as a prominent secondary market for data centers, offering substantial investment opportunities and contributing to economic and technological advancement as the continent continues its digital growth.
