South Africa Data Center Power Market

South Africa Data Center Power Market Analysis

The South Africa Data Center Power Market size is estimated at USD 206.07 million in 2025, and is expected to reach USD 389.86 million by 2030, at a CAGR of 13.6% during the forecast period (2025-2030).

African data centers use a considerable amount of power, and commercial DC power usage has been growing by an average of 40% annually over the past five years as adoption has accelerated. It was expected to pass the 4,000 GWh mark in 2022. South Africa's power grid has experienced challenges with reliability and stability, leading to potential disruptions in data center operations. Data centers require a reliable and stable power supply to ensure uninterrupted operations, and grid instability can impact their sustainability efforts. Such factor leads to major market demand.

Usage levels are expected to double over the next five years, and projections of DC power consumption will grow by 20% to 25% annually, expecting to reach nearly 8,000 GWh by 2026.

• Under Construction IT Load Capacity: The upcoming IT load capacity of the South African data center power market is expected to reach 828.92 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 4.4 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 220,201 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to 9 submarine cable systems connecting South Africa, and many are under construction. One such submarine cable that was estimated to start service in 2023 was 2Africa, which stretched over 45,000 km with landing points from Cape Town, Mtunzini, and Port Elizabeth in South Africa.

South Africa Data Center Power Market Trends

IT and Telecom to Hold Significant Share

• Telecom providers are primarily responsible for driving content delivery and facilitating mobile and cloud services, which is why telecom data centers require high connectivity. This specific type of data center is connected to other data centers, cloud providers, and telecom operators through outside plant (OSP) cables, with cross-connects extensively deployed to ensure efficient operations.
• While most traditional data centers use alternating current (AC) power distribution systems, telecom data centers run on direct current (DC) power. Adding more battery strings allows DC power systems to easily be built and expanded over time as the load increases. Since telecom data centers manage network resources, such as vRAN and 5G packet core, the increasing load is expected to increase with major 5G deployment.
• The rapidly increasing 4G penetration and the upcoming 5G wave are adhering telecom vendors to invest in the South African data center power market. In October 2022, the South African telecom provider Telkom established the 5G high-speed internet network with the help of Huawei Technologies from China. Huawei continues to assist South Africa in developing its 5G networks. The prominent 5G network on the African continent has more than 2,800 base stations deployed.
• Overall, the data center power market is expected to expand in the telecom industry, mainly for UPS and PDU, due to its added benefits, which will lead to a major positive market trend.

Switched Power Distribution Unit (PDU) to Register Significant Growth

• The South African data center power market is expected to develop expressively over the prediction period owing to the region's huge potential for data center service providers. SMEs in South Africa are investing heavily in the cloud. The option to set up cloud resources in a multi-tenancy or shared model allows firms to take advantage of the cost savings realized by sharing infrastructure. The Flexera State of the Cloud Report revealed that 53% of SMEs spent more than USD 1.2 million on the cloud in 2023, up from 38% in 2022.
• The cloud switched PDU series provides a versatile power management solution featuring advanced surge protection, seamless cloud management, and easy installation. To take benefit of this untapped market, various large cloud companies are adopting such PDUs with increasing investment in the country. AWS announced plans to launch data center infrastructure in the country. AWS invested ZAR 15.6 billion (USD 858 million) through 2022 to meet customer demand for cloud computing services.
• Switched power distribution units also allow key personnel to control the on/off state of individual outlets remotely. This allows operators to manage critical loads, avoid wasted power, ensure equipment is plugged into the correct phase, and manage schedules. In South Africa, HPE offers HPE G2 metered and switched PDU, providing local and remote power management with outlet-level power metering and switching. An LCD screen provides local monitoring and alert indications, while remote access and configuration are obtainable through secure web, SNMP, CLI, or telnet interfaces.
• Furthermore, most of the biggest private companies in the country, as well as some government departments, have either migrated their data to public clouds or are in the process of doing so. With the increasing number of data centers, the demand for switched PDUs is expected to increase since they limit the power usage at the outlet to avoid accidental overloads and are ideal for remote data centers.

South Africa Data Center Power Industry Overview

The South African data center power market is slightly fragmented among the players and has gained a competitive edge in recent years. The few major players in the market include ABB Ltd, Caterpillar Inc., Eaton Corporation, and others. These major players with a prominent market share focus on expanding their customer base across the region. These companies leverage strategic collaborative initiatives to increase their market share and profitability.

• In December 2023, Eaton Corporation announced the launch of its new Rack PDU G4 (4th generation), which provides a high-security and business continuity data center. It also combines with C39 outlets that securely connect both C14 and C20 power cords, backed by a locking mechanism and a built-in high retention system that secures the power cord.
• In November 2023, ABB Ltd announced the launch of the Protecta Power panel board, designed for industrial, commercial, and institutional buildings. It is integrated with digital monitoring and control technology, enhancing durability and safety.

South Africa Data Center Power Market Leaders

South Africa Data Center Power Market News

• April 2024: Vertiv, a significant provider of critical digital infrastructure and continuity solutions, introduced the extension of the Vertiv Liebert GXT5 lithium-ion double-conversion, online uninterruptible power supply (UPS) system for 5 kVA-10 kVA global voltage (GV) (200 V-240 V; default 230 V) applications.
• January 2024: Caterpillar Inc. partnered with Microsoft and Ballard Power Systems to test the use of large-format hydrogen fuel cells as a reliable and eco-friendly backup power source for multi-megawatt data centers. Hydrogen fuel cells are seen as a possible low-carbon alternative to diesel backup generators, which is expected to drive the growth of DC generators.