Africa’s Digital Ambitions Face Transmission and Fragmentation Risks

Africa is increasingly united in its ambition to build a competitive, AI-enabled digital economy. Governments and investors across the continent are scaling digital infrastructure, recognising data centres as the backbone of cloud computing, artificial intelligence, and modern digital services.

The opportunity is significant. Africa’s data centre market is projected to grow from US$3.49 billion in 2024 to US$6.81 billion by 2030, while the AI market is expected to expand from US$4.51 billion in 2025 to over US$16.5 billion by 2030. Together, these sectors underpin a broader US$1.5 trillion digital economy potential by the end of the decade.

Yet structural weaknesses threaten this trajectory. Transmission—both of power and connectivity—remains one of the continent’s most persistent barriers. Dr. Krishnan Ranganath, Regional Executive for West Africa at Africa Data Centres, argues that while power generation exists, outdated grids and weak fibre networks prevent effective distribution.

“Building data centres is the easy part,” he says. “If connectivity is unreliable or power transmission is weak, these facilities become stranded assets.”

Fragmentation compounds the challenge. Divergent regulations, data localisation rules, and uneven digital maturity across countries raise costs, limit scale, and undermine cross-border investment. Instead of a unified market, Africa risks developing isolated digital hubs that struggle to compete globally.

While momentum is growing—from Egypt and Kenya to Nigeria and South Africa—progress will depend on coordination. Africa’s cloud market is projected to reach US$45 billion by 2031, and fintech US$65 billion by 2030, but realising this potential requires aligned policies, shared standards, and regional collaboration.

“The question is not just data centres,” Dr. Ranganath notes. “It is how Africa builds a complete digital ecosystem—power, networks, skills, and markets working together.”

Africa’s digital future is within reach. But without fixing transmission fundamentals and overcoming fragmentation, the continent’s AI and digital ambitions risk falling short of their promise.