Kenya's data center market is expected to generate more than $ 100 Mn in revenue owing to its 18+ DC facilities by the end of the year 2027F: Ken Research
GURUGRAM, India, Feb. 6, 2023 /PRNewswire/ -- Kenya's Data Center Market is at a growing stage, being driven by the growing demand from SMEs and rising internet penetration rate. Major Data Center companies in the Kenyan market are icolo.io, IX Africa, Africa Data Centers, PAIX (Pan African IX Data Centers Kenya Ltd.), etc.
- Nairobi and Mombasa are the booming data centers market which continues to attract heavy investment as internet and mobile data usage continues to grow.
- Nigeria, South Africa, and Kenya accounted for more than half of the online shoppers in Africa.
- With the advent of mobile money and integration with formal banking systems, the number of Kenyans with access to electronic financial services has grown rapidly.
Huge Growth Prospects through AI: Kenyans' preference for mobile commerce is expected to lead to an increase in the demand for data centers in the nation. Additionally, new entrants are significantly accelerating market expansion in the upcoming years by meeting the demands of regional businesses and cloud service providers. For instance, Nairobi, Kenya-based Africa Data Centers has announced plans for two additional data centers.
Innovative Delivery Solution: In Kenya, the area of development that will further offer chances for vendors with innovative delivery solutions to grab the market is the country's underdeveloped transportation and distribution infrastructure. An option in this situation would be to use a pay-online, pick-up-in-store arrangement. Additionally, due to a desire to make payments online or through a mobile money account, e-commerce in Kenya has huge potential. Due to these strategies, Kenya's data center industry could experience double-digit CAGR growth in the near future.
New Players in the Market and Partnership with Finance Companies: Kenyan data centers can reach the bulk of their possible end customers because of their solid distribution network. The ability of businesses like Africa Data Centers to offer their customers the highest caliber of interconnected, carrier-neutral, and cloud-neutral data center facilities across Africa will be strengthened by a strategic network of alliances. Additionally, continued government assistance will aid in the country's market expansion.
Analysts at Ken Research in their latest publication "Kenya Data Center Market Outlook to 2027F - Growing Demand from SMEs, Rising Internet Penetration Rate and Rising Number of Facilities to Drive the Kenyan Data Center market in the near future" observed that Kenya Data Center Market is in a growing phase. Improvement in network connectivity, government support, and rapid growth in the adoption of big data, and IoT services are some of the factors that will contribute to the Kenya Data Center market growth over the period of 2022-2027F. It is expected that the Kenya Data Center Market will grow at a CAGR of 21.6% for the above-forecasted period.
Key Segments Covered in the report:-
Kenya Data Center
By Vertical
- Managed
- Co-Location
- Hyperscale
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By Type of Co-Location
- Retail
- Wholesale
By End User Industry
- BFSI
- IT/Ites
- E-Commerce
- Government
- Others
Key Target Audience
- Data Center companies
- Cloud providers (Domestic and Global)
- Managed data center companies
- Co-location data center companies
- Private Equity and Venture Capitalist
- Industry Associations
- Data Center Constructors
- Technology providers
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Time Period Captured in the Report:-
- Historical Period: 2017-2022
- Base Period: 2022
- Forecast Period: 2022-2027F
Companies Covered:-
- icolo.io
- IX Africa
- Africa Data Centers
- PAIX (Pan African IX Data Centers Kenya Ltd.)
- Safaricom
- Telkom Kenya
Key Topics Covered in the Report:-
- Market Overview and Genesis of Kenya Data Center Market
- Cross Comparison of the DC Market in Kenya with Other Countries (Based on Market Stage, Competition, Number of Data Centers, and Major regions)
- Market Size Analysis, 2017 to 2022
- Market Segmentation of Kenya Data Center Market
- End User Analysis Kenya Data Center Market
- Challenges and Bottlenecks in Kenya Data Center Market
- Enablers & Growth Drivers in Kenya Data Center Market
- Trends and Developments in Kenya Data Center Industry
- Reseller Mechanism in the Data Center Market in Kenya
- Competition Framework of Kenya Data Center Market
- Pricing Analysis of Kenya Data Center Market
- Impact of COVID-19 on Kenya data center
- Future Outlook of Kenya Data Center Market
- Case Study
- Analyst Recommendation
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Over the forecast period 2022-2026F, the Indonesia Data Center Revenue is further anticipated to increase at a significant double digit CAGR during the review period 2021 to 2026F. The Indonesian Government's program 'Making Indonesia 4.0' will put Indonesia among the top ten global economies by 2030 by implementing digital transformation in different industry verticals such as manufacturing, finance, healthcare, and more resulting in the higher demand for Data Center services by the end users in the country. The emergence of 5G technology in Indonesia is likely to grow the adoption of IoT-enabled products in the Indonesia market further contributing to the development of data center industry.
The high upfront costs, higher power tariffs, maintenance-related issues, security and high real estate costs are increasingly tipping the scale in favor of third-party Data Centre operators. Additionally, major cloud service providers such as AWS, Huawei, Oracle are also exploring setting up their own Data Centers to provide Public and Private Cloud Services, including Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS), and Software-as-a-Service (SaaS). The Cloud Services Market in UAE is highly fragmented comprising various global and local cloud services operators with Microsoft being the most popular cloud services provider.
UAE Cloud Services Market is set to grow at a CAGR of 16.9% in terms of revenue generation, over the period 2021-2026F. The growing and influential role of cloud operators toward embracing technologies and processes such as cloud, business intelligence (BI), analytics, customer relationship management (CRM), digital business and marketing, are contributing to fuel the demand for cloud services.
Morocco's Data Center market is projected to witness a CAGR of 8.1% between 2022 to 2027F. This is majorly due to increasing reliance on technology, rising investment to expand capacity, digital transformation, and an increase in government initiatives. The market is expected to increase due to trends of a rising middle class in the country and accelerated urbanization. Moreover, e-Commerce has great potential in Morocco due to a willingness to make online payments or through a mobile money account. The data center market in Morocco is expected to grow because Morocco will be linked to the Mediterranean's longest giant submarine cable system called "Medusa" by early 2025. It will connect nine countries in North Africa and Southern Europe which provide access to telecommunication infrastructure that is crucial for developing the digital ecosystem in North African countries by 2024 and 2025.
South Africa Hyperscale Data Centers Market is Expected to grow at a CAGR in double digits between 2022 and 2027E, one of the major determinants for the surging growth in coming years is attributed to the favourable government rules & regulations, formulated to support domestic and foreign investments in data and cloud infrastructure. Increased awareness on environmental impacts and government's aim to limit carbon footprints in upcoming years, will result in businesses adapting to a strategy to utilize least amount of energy. Teraco offering clients a global data center platform designed to enable digital businesses to scale within a highly connected data community across six Continents.
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Ken Research Private Limited
Ankur Gupta, Director Strategy and Growth
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