The Data Centre Boom in South Africa

South Africa’s Data Centre Boom

South Africa is experiencing one of the fastest-growing expansions of data centres on the African continent. Fuelled by increased cloud adoption, artificial intelligence (AI) workloads, and an urgent need for data sovereignty, the country is rapidly positioning itself as a digital powerhouse. The scale of development, especially in and around Johannesburg, signals significant opportunities for both local and international players.

Major Drivers Behind the Boom

Several factors are pushing South Africa into a new era of digital infrastructure:

1. Explosive growth in cloud and AI demand
Enterprises are increasingly shifting to cloud-based systems, hybrid environments, and AI-driven operations. These require robust, scalable hosting environments with reliable connectivity and high compute capacity—exactly what modern data centres are built for.

2. Strong connectivity foundations
South Africa benefits from advanced fibre networks and multiple undersea cable landing points, making it the ideal gateway for digital services moving into and out of Sub-Saharan Africa. As international traffic grows, local hosting becomes even more important.

3. The need for data sovereignty
Businesses and public-sector organisations want to keep sensitive data within national borders—especially with stricter regulations around privacy, financial information, and cloud compliance. Local data centres ensure this security while reducing latency.

4. Growing investment appetite
Global investors and hyperscalers see South Africa as the most reliable and mature digital market in Africa. Billions of rand are flowing into new facilities, expansions, and upgrades to meet future demand.

New Builds and Expanding Capacity

South Africa currently hosts hundreds of megawatts of live data-centre capacity—more than any other African nation. The next few years are expected to bring a significant surge in new developments:

• • Gauteng, especially the Johannesburg region, is receiving the majority of new capacity, driven by its corporate presence and strong fibre backbones.
• • New technologies such as edge computing and micro data centres are spreading infrastructure beyond traditional hubs.
• • Hyperscalers, telecoms, and enterprise customers are demanding more power-dense facilities capable of supporting high-performance computing and AI clusters.

This rapid expansion reflects a maturing market where both domestic and international players see long-term strategic value.

Challenges Facing the Sector

Despite the momentum, the boom is not without challenges:

Power constraints:
Modern data centres require huge and stable power supplies. South Africa’s grid instability, rising tariffs, and load-shedding concerns increase operational risk and cost.

Water usage and sustainability:
Cooling systems can be water-intensive. With increasing pressure on national water resources, operators must adopt greener, more efficient solutions to remain competitive.

Infrastructure concentration:
Johannesburg dominates the market, which presents a risk. Wider distribution of data centres would improve resilience and reduce regional load.

Balancing investment with real demand:
There is a risk that capacity may outpace demand in certain segments. Strategic planning is essential to avoid underutilised facilities.

Why South Africa Remains Attractive

Despite the infrastructure pressures, the country remains the continent’s most attractive digital hub. It offers:

• • A highly developed enterprise and financial sector
• • Skilled tech professionals and a growing demand for data-centre jobs
• • Access to regional markets where digital services remain underserved
• • A regulatory environment that encourages digital transformation

These strengths drive sustained interest from global operators.

Spotlight on NTT in Bryanston

A key example of international commitment to South Africa’s digital ecosystem is NTT Ltd. It maintains a significant presence at The Campus, 57 Sloane Street where it rents office space in Bryanston as part of its South African operations.

Globally recognised for its extensive data-centre and network-services portfolio, NTT also operates large-scale data-centre facilities in Johannesburg. Their Johannesburg 1 Data Centre includes thousands of square metres of server space and offers multi-megawatt capacity, making it one of the more advanced facilities in the region.

Their presence illustrates how global brands are embedding themselves in South Africa—not only through data centre infrastructure but also by establishing regional offices, support teams, and customer-facing operations. Bryanston, already a premium office and technology node, benefits from this clustering, attracting more companies linked to cloud services, networking, and digital transformation.

Implications for the Country

The data-centre boom carries broad national implications:

• • Economic growth: New construction, facilities management, engineering, and IT roles contribute to job creation.
• • Digital transformation: Local infrastructure accelerates cloud adoption for government, healthcare, retail, finance, and manufacturing.
• • Improved African connectivity: South Africa becomes the digital launchpad for services expanding northward across the continent.
• • Sustainability innovation: Pressure on resources is driving investment into solar, battery storage, water-efficient cooling, and green building design.

Conclusion

South Africa’s data-centre boom represents a historic turning point in its digital evolution. With increasing global investment, strong local demand, and well-developed connectivity, the country is set to remain Africa’s digital hub for many years to come. The presence of global operators like NTT—with offices in Bryanston and major data-centre facilities in Johannesburg—underscores the depth of international confidence in the market.

As long as power resilience, sustainability, and infrastructure development continue to improve, South Africa will solidify its role as the backbone of Africa’s digital future.