Africa Data Center Market - Industry Outlook & Forecast 2022-2027
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Answer: The key investors in the Latin American data center market are Ascenty, Ava Telecom, Embratel, Equinix, GlobeNet, HostDime, ODATA, Quantico, Scala Data Centers, Telmex, and Tigo Business.
Several African countries, including South Africa, Kenya, Egypt, Nigeria, and Ethiopia, have been investing heavily in data centers in recent years. In 2021, there will be more than 9 data centers in Africa, each adding around 30,000 square feet of white space.
In several countries, governments are establishing special economic zones and industrial parks that offer tax exemptions for data center development.
In October 2021, Venture Data Centers announced its entry into the African market with an initial investment of USD 1 billion to construct a data center in Johannesburg, South Africa.?
As part of its expansion plans for Africa, Equinix announced its intention to purchase MainOne for USD 320 million in December 2021. Digital Realty announced in January 2022 that it will acquire a majority stake in Teraco Data Environments.
The transaction is anticipated to be completed by the end of H1. In South Africa, cloud adoption is expected to grow up to 25% annually and generate USD 1.5 billion by 2024. In South Africa, SaaS is widely adopted by organizations, followed by IaaS solutions in the data center and networking sector.
By 2022-2027, the African data center market will generate USD 900 million in revenue for UPS systems suppliers. The price of lithium-ion batteries will decrease due to hyperscale investment during the forecast period.
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The cumulative investment in data center infrastructure will be more than USD 600 million between 2022 and 2027. Egypt's government is supporting the growth of the data center industry.
According to the National Telecom Regulatory Authority (NTRA), in August 2021, a framework for hosting and cloud computing services will be available in the country. To attract hyperscale operators and cloud service providers, this framework is being implemented.
NetApp acquired Talon Storage Solutions and Cloud Jumper Corporation, two companies offering software-defined storage solutions, for USD 23 million and USD 34 million respectively in 2020.
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