This article is taken directly from the source cited and does not necessarily represent the opinion or position of the American Chamber of Commerce, Kenya.
Published: February 4, 2021
There has been a rapid growth of internet users across the African continent over the past decade which has resulted in an increase in demand as more people in Africa get online.
However, the continent still heavily relies on data centres in other regions.
In its annual Data Centre Cost Index, global consultancy Turner & Townsend’s revealed that although there has been a slump in the supply of data centres across the globe owing to the Covid-19 pandemic, demand continues to grow exponentially.
Findings show that increasing costs in every market due to a year of supply disruption did not deter data centre demand in most markets including Nairobi and Johannesburg. The two African capitals were among 44 other locations that were surveyed.
According to the study, despite the negative impact of the coronavirus pandemic, demand remained relatively steady when compared to other industries owing to governments’ decisions to make working and schooling from home mandatory.
“Market growth for data centres has been exponential over the past five years and the trend towards a totally digitally connected world was accelerated by 18 months of online working and socialising. As the data centre market matures, the future for the industry in Africa and globally looks resoundingly positive,” Turner & Townsend’s data centre lead for Africa Wendy Cerutti said.
She added that moving forward, parts of Africa and South America would provide fresh as these regions are currently at the steepest part of the digital adoption curve.
“This is where the digital market is coming of age and the use of internet-enabled devices are soaring,” Cerutti said.
Despite the high cost of building and maintaining data centres, there has been an increase in demand for these facilities across the continent.
“With less competition – and build costs coming in around a third less than key primary markets- market interest is turning toward developing nations,” Cerutti said. Continue reading...
Read the Turner & Townsend Data Centre Cost Index 2021
Source: The Exchange
