Positioning Kenya as the Digital Infrastructure Hub

Kenya is emerging as an unexpected contender for data centre expansion. South Africa currently hosts around 85% of the continent’s data centres, but the landscape is shifting. With burgeoning demand, operators are increasingly turning to Kenya to serve the East African market and leverage its extensive fiber networks reaching into Asia and Europe. In 2022, Digital Realty Trust made a significant stride by acquiring Teraco, Africa's leading data centre platform, for $3.5 billion (￡3 billion), signalling a robust investment in the continent.

While Kenya's appeal as a data centre hub is not new to the sector, stakeholders, including colocation and hyperscalers, must carefully consider various factors when selecting an East Africa location. In this latest newsletter we look at sustainability and legislative considerations for new data centre developments in Nairobi, to unpack why it’s become perhaps the most attractive destination on the continent.

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Kenya's Sustainable Advantage

Kenya mirrors the Nordic countries like Iceland in its reliance on low-carbon electricity sources, with 81% of its power generated from geothermal, hydro, wind, and solar energy. Geothermal energy, in particular, accounts for over half of this renewable energy mix, aligning Kenya as an ideal location for environmentally friendly data centres with robust fibre connectivity.

However, there are still challenges to consider when developing data centres in Africa. In a recent article by Ed Ansett, he shares a broader perspective on Africa's energy landscape highlighting the importance of reimagining solutions to address grid dependency challenges and the promising opportunities presented by countries like Kenya and South Africa in terms of capacity.

Cooling is an obvious choice for design when it comes to achieving further sustainability in warm climates and by utilising heat and chip power (CHP) data centres can not only support the microgrid, but also social initiatives, as highlighted in our GHG Abatement paper ‘Towards More Sustainable Data Centre Design using CHP’.

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Nairobi: A Catalyst for Kenya's Digital Innovation

Nairobi, the capital of Kenya, stands at the forefront of the country's journey towards cloud readiness, fostering a climate ripe for innovation and entrepreneurship. Recognising its potential, major players like Microsoft have identified Nairobi as a talent hub, exemplified by the establishment of its $100 million Africa Development Centre (ADC) in 2019, – a pioneering move for the continent. Collaborating closely with the government these initiatives are driving Kenya's digital transformation forward.

Investing in Nairobi's dynamic population is a strategic imperative for many operators. With over 5 million residents, boasting an average age of just 21, the city hosts a youthful and digitally savvy demographic. This promising population is fuelling an escalating demand for internet connectivity, smartphones, and other digital technologies, underscoring the critical need for robust digital infrastructure. By prioritising investments in its people, operators not only contribute to local initiatives but also position themselves to capitalise on Kenya's projected growth, forecasted to average 5.2% between 2024 and 2026.

Kenya's proactive approach to renewable energy and community underscores its commitment to fostering a sustainable and secure digital ecosystem, positioning it as a compelling destination for data centre investments.

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If any of these considerations have sparked questions for you, please leave a comment. Building future-state data centres, which are smart and sustainable, can only be achieved through the collective effort of our industry. In the next newsletter, we’ll be looking at the journey to Net Zero, following Ed Ansett’s new chapter in Greener Data Volume Two! Available now, only on Amazon!