The rapid evolution and widespread adoption of AI is transforming industries globally. As organisations start seeing the potential for AI, demand is growing for ever-more advanced and powerful data processing capabilities to support AI.
South Africa, with its strategic location, robust infrastructure, and growing tech ecosystem, should move to capitalise on this demand and position itself as a premier destination for international data centre hosting.
So says Jessica King, Key Account Manager at Digital Parks Africa (DPA).
She says: “The AI revolution is a golden opportunity for South African data centres. AI applications, from machine learning to sophisticated neural networks, require substantial computational power and data storage. Traditional data centres, while effective for standard IT operations, often fall short of meeting the specialised demands of AI. As AI technologies continue to advance, data centres must evolve to support high-performance computing (HPC) and handle massive datasets more efficiently.”
To seize the AI opportunity, King says local data centres should also implement advanced cooling solutions, ensure scalability, and bolster security. Sustainability is also crucial: data centres need to leverage renewable energy, she says.
The SA Advantage
King says South Africa’s location and resources make it an ideal data centre hub. “South Africa’s data centre potential is underscored by several strategic advantages. According to a report by Xalam Analytics, the African data centre market is expected to grow at a compound annual growth rate (CAGR) of 12% from 2021 to 2026. South Africa, in particular, leads this growth due to its superior infrastructure and connectivity,” she says.
“South Africa is in a strategic location – positioned at the crossroads of major international submarine cables, South Africa offers unparalleled connectivity to Europe, Asia, and the Americas. This connectivity is further strengthened by the arrival of the Equiano cable, which enhances the country’s bandwidth capacity and provides faster, more reliable internet connections,” King says.
The Equiano cable, a project by Google, is expected to deliver 20 times more network capacity than the previous cables serving South Africa.
With a burgeoning tech industry, South Africa also provides a pool of skilled professionals and innovative startups. King says this vibrant ecosystem fosters collaboration and innovation, essential for advancing AI technologies. The South African government’s investments in tech hubs and incubators, like the Tshimologong Digital Innovation Precinct, further support this growth.
In addition, South Africa is rich in renewable energy sources, particularly solar and wind.
King says: “Leveraging these resources can help data centres reduce their carbon footprint and operating costs, aligning with global sustainability imperatives. Emphasizing renewable energy and sustainable practices can make South Africa a preferred destination for companies committed to reducing their environmental impact.”
According to the International Renewable Energy Agency (IRENA), South Africa has the potential to generate 4,500 TWh/year from solar and 5,000 TWh/year from wind energy, far exceeding the country’s current energy needs.
The Road Ahead
For South Africa to capitalise on these advantages, strategic investments in infrastructure and policy support are crucial, King says.
“Fostering public-private partnerships will be key to positioning South Africa as a leader in the AI revolution,” she notes. “These public-private partnerships can play a significant role in developing the necessary infrastructure and ensuring regulatory frameworks that encourage investment and innovation.”
“Clear and supportive regulatory frameworks can attract international investments and facilitate the growth of the data centre industry,” she says, highlighting the South African government’s recent amendments to the Electronic Communications Act, aiming to streamline processes for digital infrastructure development.
She believes both government and private sector investments are needed to build state-of-the-art data centres equipped to handle AI workloads. She cites a study by the World Bank which indicates that every dollar invested in digital infrastructure in Africa can generate up to $5 in economic growth.
King concludes: “As AI continues to reshape the global landscape, South Africa’s data centres have a unique opportunity to become key players in this transformation. By adapting to the needs of AI and leveraging the country’s strategic advantages, South Africa can attract international players and drive economic growth. The time to act is now, ensuring that South Africa not only participates in the AI revolution but leads it.”