THIS JUXTAPOSITION OF CHALLENGE AND OPPORTUNITY HIGHLIGHTS THE IMPERATIVE FOR INNOVATIVE AND SUSTAINABLE ENERGY SOLUTIONS IN AN INCREASINGLY DATA-DRIVEN WORLD .
E X P E R T O P I N I O N wo of Africa ’ s biggest
T economies suffer regular power grid blackouts . South Africa continues to grapple with a formidable energy challenge caused by a strained and unreliable power grid prone to rolling outages . In Nigeria , the grid crisis has reached alarming levels , with two total grid collapses occurring within a single week in September 2023 .
Such grid instability poses a significant hurdle for data centre development , as these are facilities that require constant and uninterrupted power . The situation is being exacerbated by ageing infrastructure , maintenance issues and a surge in energy demand .
Yet , the situation across the African continent presents a unique set of opportunities for innovation . Data centre developers in South Africa and Nigeria could explore alternative power solutions , such as microgrids and demand response mechanisms , to fortify their energy ecosystems and at the same time fuel the growth of their digital economies .
This juxtaposition of challenge and opportunity highlights the imperative for innovative and sustainable energy
Vantage ( US $ 1bn invested with plans for more ) have all made significant market moves in South Africa and are pushing into new territories across the continent .
At the same time , local players are emerging . Typical projects include Liquid Intelligent Technologies ’ 10MW data centre in Lagos , Nigeria ; Africa Data Centres ’ new facility in Accra , Ghana with an initial capacity of 10MW , and the potential to expand to 30MW is the largest data centre facility in West Africa
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THIS JUXTAPOSITION OF CHALLENGE AND OPPORTUNITY HIGHLIGHTS THE IMPERATIVE FOR INNOVATIVE AND SUSTAINABLE ENERGY SOLUTIONS IN AN INCREASINGLY DATA-DRIVEN WORLD .
solutions in an increasingly data-driven world . Sector growth in Africa ’ s digital services in line with the rollout of off-grid power , increasing internet penetration , rising smartphone usage and e-commerce have sparked a rush into data centres .
Existing and future investment figures are impressive , and demand drivers are accelerating , but such rapid growth should not be delivered in a gold rush fever that ignores the opportunities to respond to demand with long-term , efficient and sustainable facilities .
A growing opportunity for data centre investment
There is much to be optimistic about in Africa ’ s data centre space . A report from market research group , Arizton , found US $ 2.6bn was invested in the market in 2021 . It is expected that US $ 5.4bn will be invested by 2027 , at a compound annual growth rate of 12.73 % over five years .
Digital Realty ( bought Teraco in 2022 ), Equinix ( US $ 320m acquisition of MainOne in December 2021 to expand in Ghana , the Ivory Coast and Nigeria ) and outside Nigeria ; Raxio Data Centres has secured a ‘ sustainability-linked ’ US $ 170m loan from a consortium of investors , who include French development finance institution Proparco , Emerging Africa Infrastructure Fund ( EAIF ) and investment manager , Ninety-One . Raxio aims to accelerate the expansion of its facilities in seven African markets .
However , the growth of data centre facilities in both size and number across Africa inevitably raises concerns about their environmental impact . Globally , there is a need for the industry to take a more sustainable approach to minimise its carbon footprint and new builds in Africa present a sustainability opportunity which must not be wasted . Simply building as before and then fighting to get grid energy by relying on Africa ’ s power generation mix that is heavily reliant on traditional sources such as coal , oil and natural gas is not viable .
Crucial for the industry is developers choosing to move away from conservative design approaches and adopting more sustainable practices . Only with energyefficient technologies running from
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