In the heart of Africa’s growing digital landscape, data centers have become pivotal pillars, propelling economies forward and driving innovation across the continent. At the forefront of this transformative journey stands the Regional Executive for West Africa at Africa Data Centres, Dr. Krishnan Ranganath. With a vision that extends far beyond mere technological advancement, Dr. Krishnan champions not only the growth of the industry but also the nurturing and empowerment of Africa’s vibrant youth.
In this exclusive interview with Digital Economy magazine Dr Krishnan share insights on data centers, and impact of Africa Data Centres in shaping Africa’s digital economy agenda.
What are the Predictions for Data Centers in 2024?
Based on various reports, revenue in the Data Center market is projected to reach US$5.76 billion in 2024. Network Infrastructure dominates the market with a projected volume of US$2.87 billion in 2024. Revenue is expected to show an annual growth rate (CAGR 2024-2028) of 7.14%, resulting in a market volume of US$7.59 billion by 2028.
The Africa Data Centre Market size is estimated at 0.52 thousand MW in 2023 and is expected to reach 1.23 thousand MW by 2029, growing at a CAGR of 15.41% during the forecast period (2023-2029).
The IT load capacity of the data center market will have steady growth and is expected to reach 1226.8 MW by 2029. By 2025, Africa is expected to account for more than 600 million mobile connections, with 65% of them through smartphones.
The number of installed racks is expected to reach 260,783 units by 2029. South Africa is expected to house the maximum number of racks by 2029. South Africa had 41.19 million internet users by the start of January 2022.
Africa’s data consumption increased from 0.6 GB/month in 2016 to 2.25 GB/month in 2022. It is expected to reach around 11.3 GB/month by 2029. A growing number of smartphone users using digital services such as streaming and digital payments are expected to boost data consumption in the future.
As telecom companies plan to shut down their 2G and 3G services and strengthen their existing 4G services, bandwidth speeds may increase by around 52.5 Mbps by 2029. The implementation of 5G services in 43 African countries may lead to increased bandwidth speeds, which may also increase data consumption.
Source: Mordor Intelligence
According to a report by Research and Markets titled “Nigeria Data Centre Market Outlook to 2027,” Nigeria’s data center market reached an estimated value of $131.6 million in 2022. By 2027, the market is expected to have experienced an approximate 220% growth. This substantial growth was attributed to the launch of 5G technologies and the increasing penetration of the Internet in Nigeria. It is expected to hit a valuation of $288.8 million by 2027.
In what areas is Africa Data Centres supporting the digital economy agenda in West Africa?
As we know, Nigeria is the key market in West Africa. As an initial move, we have a state-of-the-art facility in Lagos at Eko Atlantic City. Now, we are in the process of expanding the facility to 10MW. As the next move, we have acquired land in Accra and are expected to start the project very soon, followed by Casablanca, Abidjan & Dakar.
By having these data centers in place, forming a connected ecosystem, it will add a lot of value to the industry and also help governments implement data domiciliation policies, which will eventually smoothen the networks.
What are your perspectives on the Data Centre industry in West Africa and Africa Data Centres’ position in meeting the demand?
As I mentioned earlier, with a projected CAGR of 15.41% in our African market, we see its direct impact in West Africa too. The industry in West Africa is growing, with decent FDIs coming into key markets like Nigeria and Ghana, and other markets growing accordingly.
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As I mentioned earlier, Africa Data Centres has seen the potential in these markets, and that is the key reason we are moving to other key West African markets. There is a demand, and we, the key industry players, need to meet that demand and provide the best quality service to these markets.
What is your leadership style and values?
My approach is always a Transformational Leadership approach, focusing on my team and their development for the future. Future, in this context, means the future of the industry and how people can be trained and guided to face new challenges and new technologies. Africa has the youngest population with a median age of 19, so we are sitting on a gold mine of talent that needs to be trained and supported. As we know, we have two major common languages: English and French, and a decent percentage of you guys can handle these two languages very well based on the country of birth/origin. So, in my view, we can support the majority of the global economies by providing high-quality human capital. When I say “my team,” I really mean the young Africans.
