According to a recent estimate, Kenya’s data center business is anticipated to produce over $100 million (Sh12.5 billion) by the end of 2027 due to the country’s expanding e-commerce.
According to the Kenya Data Centre Market Outlook to 2027 report published by research and consultancy firm Ken Research, the country’s data center market is developing as a result of rising demand from SMEs and rising internet penetration.
The research goes on to explain that some of the elements that can be used to accelerate the growth include an improvement in network connectivity, government backing, and focused expansion in the adoption of big data and the Internet of Things (IoT).
In order to store, process, and distribute data and applications, an organization’s shared IT operations and hardware are centralized in a data center.
Africa Data Centres (ADC), Pan African IX Data Centres Kenya Limited (PAIX), IX Africa, and icolo.io are a few well-known brands in the local market.
By satisfying the needs of local companies and cloud service providers, new entrants are predicted to greatly accelerate market expansion in the upcoming years.
According to the research, “Nairobi and Mombasa are the booming data centers industry that continues to attract major investment as internet and mobile data demand expand.”
ADC won Sh3.7 billion from the US government last month to expand its data center in Nairobi. As a result, the facility’s capacity would increase from the present 5 megawatts (MW) to an additional 15 MW of IT load.
According to the report, the expansion will provide opportunity for online retailers with creative delivery methods to thoroughly investigate the nation’s weak transportation and distribution infrastructure.
The significant increase in Kenyans with access to electronic financial services in recent years, along with mobile money’s eventual integration with established banking institutions, indicates an even greater potential in the country’s e-commerce environment.
In an effort to speed up Internet connectivity throughout the nation, President William Ruto’s Kenya Kwanza administration has set an ambitious goal to build an additional 100,000 kilometers of national fiber optic cable.
In order to facilitate e-commerce, the government has also made plans to build 1,450 digital hubs throughout all of Kenya’s wards and 25,000 free WiFi hotspots in significant urban areas.
