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The Hyperscale Data Center market in South Africa expanded at a CAGR of XX.X% in between 2017 and 2022 on the basis of revenue generated.
The evolution of hyperscale data centers is being driven by the development of sophisticated services and greater compute/storage demand, requiring data centers to find a way to put more computing capacity into smaller spaces.
South Africa Hyperscale Data Center Market is estimated to grow at a positive CAGR of XX.X% in between 2022 and 2027E.
The data center market in South Africa is emerging with key projects coming to fruition and hyperscale investments increasing.
As the demand for cloud computing solutions increases, so does the need for the supporting large scale data center infrastructure.
The number of people connecting to the internet is continuing to drive demand for data-center-based compute and connectivity.
Some upcoming trends in the Hyperscale data center market are
Adoption of Public Cloud Services
Industries opting for hybrid cloud architecture
Accessing cloud on-ramps to avoid public internet connectivity issues
Colocation Facilities from multi-tenant data centers
Hyperscale Data Center facilities are emerging
Internet Penetration in South Africa
As of 2022, the share of the total population of South Africa using the internet was nearly XX%. This share is estimated to grow up to XX% by 2027. This would be an increase of XX% compared to 2018 when the share of the population accessing the internet in the country was XX%.
There were XX.X million internet users in South Africa in January 2022. South Africa’s internet penetration rate stood at XX.X% of the total population at the start of 2022. Internet users in South Africa increased by thousand between 2021 and 2022.
Internet traffic growth in South Africa has grown by a CAGR of XX% in from 2016 to 2021, with 31 Petabytes of internet traffic per day in 2021. Most data centers in the region are working to drive down energy consumption to advance sustainability in their centers and decrease costs
Market Size
Hyperscale data center market in South Africa generated a revenue of USD X million in 2022, expanding at a CAGR of XX.X% in between 2017 and 2022.
The surging growth is attributed to the increasing usage of digital and online platforms post COVID-19.
The increasing digital/online usage contributed in the growing demand for data storage capability, server hostage and enhanced IT network of enterprises.
Social media usage increased from XX% in 2019 to XX% in 2020 due to complete lockdown of the economy which resulted in the increased consumption of online content.
Coupled with that, increasing internet penetration rate in between 2017 and 2022, resulted in heavy internet traffic, positively impacting the hyperscale data center market. ~XX% of the overall population were active internet users in 2022.
Businesses accelerating their digital transformation strategies to adapt to the shifting culture of online & digital domination contributed in the enhanced demand for cloud computing solutions post COVID-19.
Therefore, major hyperscale data center companies invested in expanding their business to cater to the rising demand.
Teraco, AWS, and Africa Data Centres among others were the major players operating in the ecosystem as of 2022.
Competitive Landscape in Hyperscale Data Center Market in South Africa, 2022
The competitive rivalry is high among the competitors. Apart from the companies building hyperscale data centers, there are various giants who are planning to set up hyperscale data centers in SA.
Teraco, Africa Data Centers and Dimension Data dominated the Hyperscale Data Center Market in South Africa, cumulatively contributing to the majority share of XX% on the basis of revenue generated in 2022.
Increasing cloud workloads have influenced companies like Amazon Web Services, Google, Microsoft, Facebook, and Apple to invest huge sums in a single campus to bring out the utmost efficiency
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Future Outlook of Industry
The Hyper scale data centre market in South Africa is estimated to generate a revenue of USD million in 2027, expanding at a CAGR of XX.X% in between 2022 and 2027E.
One of the major determinants for the surging growth in coming years is attributed to the favourable government rules & regulations such as Draft National Data & Cloud Policy formulated to support domestic and foreign investments in data and cloud infrastructure. Coupled with that, the National Broadband Policy launched by the government, aiming to improve broadband connectivity among users, schools and public organizations by 2030 will serve as a major demand driver for the growth of HSDC market in South Africa. Increased awareness on environmental impacts and government’s aim to limit carbon footprints by 2030 will result in businesses adapting to a strategy to utilize least amount of energy.
There has also been a drive to lessen energy consumption will act as a catalyst for the increased demand of energy efficient hyperscale data centers in coming years.
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Educational institutions leveraging on technologies such as e-learning and digital collaboration coupled with corporate organizations shifting to a hybrid working environment will further contribute in boosting the demand for large scale hyperscale data center in South Africa.
Key Segments Covered
South Africa Hyperscale Data Center Market:
By Data Center Size (by Revenue), 2022 & 2027:
Large Sized
Small & Medium Sized
By Industry Users (by Revenue), 2022 & 2027:
IT
Telecom
Government
Others
By Solutions Provided (by Revenue), 2022 & 2027:
Network
Storage
Servers
Others
By End Users (by Revenue), 2022 & 2027:
Cloud Providers
Enterprises
Others
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Time Period Captured in the Report:
Historical Period: 2017-2022
Base Year: 2022
Forecast Period: 2022- 2027F
Companies Covered:
Teraco
Africa Data Centers
Dimension Data
Vantage Data Centers
Amazon Web Services
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Key Topics Covered in the Report:
South Africa Hyperscale Data Centers Overview
Internet Penetration in South Africa
Cross Comparison of Data Center Market in South Africa with Other Countries
Ecosystem of Hyperscale Data Center Industry in South Africa
Business Cycle of Hyperscale Data Center Market in South Africa
Construction of Hyperscale Data Centre
Features of Hyperscale Data Center Facilities
Data Center Trends Driving Digital Transformation
Market Segmentation of Hyperscale Data Center Industry in South Africa
Porter Five Forces Analysis: South Africa Hyperscale Data Center Market
Growth Drivers of South Africa Hyperscale Data Center Market
Mergers, Acquisitions and Key Investments in South Africa Hyperscale Data Center Market
Issues and Challenges in South Africa Hyperscale Data Center Market
Demand Analysis
Competitive Landscape
Future Market Size of Hyperscale Data Center Industry in South Africa
Future Market Segmentation by Companies of Data Centers
Future Market Segmentation by Data Center Size
Future Market Segmentation by Industry Users
Future Market Segmentation by Solutions Provided
Future Market Segmentation by End Users
Analyst Recommendations
For more information on the research report, refer to below link:
https://www.kenresearch.com/technology-and-telecom/telecommunications-and-networking/south-africa-hyperscale-data-center-market-outlook-to-2027/596050-105.html
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https://www.kenresearch.com/technology-and-telecom/it-and-ites/modular-data-centers/329587-105.html
https://www.kenresearch.com/technology-and-telecom/telecommunications-and-networking/ksa-data-center-and-cloud-services-market-outlook-to-2026/561415-105.html
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Ken Research is a research based management consulting company. We provide strategic consultancy to aid clients on critical business perspective: strategy, marketing, organization, operations and technology transformation, advanced analytics, corporate finance, mergers & acquisitions and sustainability across all industries and geographies. We provide business intelligence and operational advisory across 300+ verticals underscoring disruptive technologies, emerging business models with precedent analysis and success case studies. Some of top consulting companies and Market leaders seek our intelligence to identify new revenue streams, customer/ vendor paradigm and pain points and due diligence on competition.
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