Data Centers Set to Reshape Africa’s Power Markets, Says AEC Outlook

Globally, demand for uninterruptible power supply for IT equipment alone is projected to reach 249 GW by 2030, rising to 374 GW when cooling and ancillary systems are included.

Africa’s rapidly expanding digital economy is emerging as a powerful new driver of electricity demand, positioning data centers as a transformative force in the continent’s power markets, according to the African Energy Chamber’s (AEC) State of African Energy 2026 Outlook.

Globally, demand for uninterruptible power supply for IT equipment alone is projected to reach 249 GW by 2030, rising to 374 GW when cooling and ancillary systems are included. As Africa accelerates digitalisation, cloud adoption and mobile connectivity, this surge presents both a pressing challenge and a strategic opportunity for energy investment across the continent.

Data Centers as Anchor Customers for Power Systems

The AEC Outlook highlights that data centers are becoming stable, long-term anchor customers for electricity markets, particularly in fast-growing digital economies such as South Africa, Kenya, Nigeria and Egypt. Unlike traditional power consumers, data centers require large volumes of reliable, uninterrupted electricity, creating predictable and bankable demand that can underpin new generation capacity and grid expansion.

Beyond electricity markets, the growth of data centers is expected to stimulate job creation, strengthen technology ecosystems and boost Africa’s competitiveness in the global digital economy. Hyperscale operators are also prioritising sustainability, driving innovation in renewable energy procurement, storage solutions and demand management—closely aligning with Africa’s long-term energy transition goals.

Structural Challenges Remain

Despite their potential, data centers also expose deep-rooted weaknesses in Africa’s power systems. Uneven electricity reliability, frequent outages and limited grid redundancy continue to threaten operational resilience. The Outlook stresses that unlocking the full value of data center investment will require coordinated policy frameworks, investment incentives, robust telecom regulation and stronger regional cooperation.

Shifting regulatory dynamics are also reshaping infrastructure decisions. As data sovereignty rules increasingly require local data storage and latency demands rise, Africa can no longer rely on Europe-based data centers to meet its digital needs. Global cloud providers are responding with pan-African strategies, accelerating demand for domestic data center capacity and placing fresh pressure on local power systems.

South Africa and Kenya Lead Emerging Momentum

The report points to South Africa as the continent’s most mature data center market, with cloud regions from Microsoft and AWS already operational and Google expected to follow. Utilisation rates exceed 83%, with projections indicating more than 94% utilisation by 2030, driven largely by Johannesburg and Cape Town. Strong foreign investment continues to reinforce South Africa’s role as a regional anchor market.

Kenya is rapidly emerging as East Africa’s fastest-growing hub, currently hosting around 40 MW of IT load capacity and recording an estimated 30% compound annual growth rate through 2028. Supported by digital-first policies and initiatives such as the Konza National Data Centre under Vision 2030, Kenya’s total data center supply is expected to exceed 155 MW by 2029, making it a critical node in Africa’s distributed cloud future.

AEW 2026 to Shape the Path Forward

The African Energy Chamber notes that African Energy Week (AEW) 2026 will play a central role in shaping collaboration between governments, utilities, investors and technology providers, as data-driven electricity demand reshapes power planning and investment priorities.

“Data centers are no longer just a technology story – they are an energy story,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “If Africa gets the power framework right, digital infrastructure can unlock investment, strengthen grids and accelerate inclusive growth across the continent.”