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Data Centers Could Be the Spark Africa’s Power Sector Needs (By NJ Ayuk)

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The growth of data centers also often brings with it a push for innovative power solutions, including the integration of renewable energy sources and advanced grid management technologies

JOHANNESBURG, South Africa, December 30, 2025/APO Group/ —By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org/).

A quarter of the way into the 21st century, digital technology has infiltrated the daily lives of billions of people to an incredible degree across the globe — but not everywhere… yet. As digital penetration rapidly nears 100% in many parts of the world, the fastest-growing markets are in developing countries where even simple electricity is hardly an assured thing. Perhaps the greatest potential is in the African market, where penetration remains shallow and demand is skyrocketing. Simply put, there’s nowhere to go but up.

Although electrification has been stubbornly slow to spread across the continent thus far, internet usage is expanding at extraordinary rates. The Global System Operators and Manufacturers Association’s (GSMA) Mobile Economy Report 2023 estimated that smartphone adoption in sub-Saharan Africa would rise from 51% in 2022 to 87% in 2030, driven by rising youth populations and more competitive mobile pricing. The same report predicted a near-quadrupling of data usage per mobile by 2028, from 4.6 GB per user per month to 18 GB. Every one of those phones that loads a search engine, a shopping site, or a business app these days is adding to that computing load, and that’s just the mobile sector. Advances in financial technology are creating new opportunities for African businesses to thrive, and artificial intelligence is fast invading every facet of the internet. Generative AI and machine learning applications consume up to 10 times more energy than traditional searches, making all that growth orders of magnitude more expensive.

So far, data centers in Europe have mostly been able to handle Africa’s needs. As African businesses and consumers increasingly demand faster speeds and lower latency, however, the need is quickly growing for more localized computing infrastructure. As of mid-2025, Africa has 223 data centers spread across 38 countries — less than 0.02% of the world’s total of more than 11,800. South Africa has the most with 56, followed by Kenya with 19 and Nigeria with 17, meaning 41% of Africa’s data center infrastructure is currently concentrated in these three countries.

In “The State of African Energy: 2026 Outlook Report,” the African Energy Chamber (AEC) posits that development of cloud infrastructure in these key markets could serve as nuclei to accelerate growth across the continent. Growing concerns over data sovereignty are also spurring some nations to require that certain sensitive data stays in-country, further driving demand for local data centers. The African data center market was valued at USD3.49 billion in 2024 and is projected to reach USD6.81 billion by 2030, rising at a Compounded Annual Growth Rate (CAGR) of 11.79%.

As a rule, data centers require a substantial and reliable supply of electricity — something Africa is not currently known for, with many countries facing frequent outages. Nigeria is a prime example. The country’s 17 data centers — the third most in Africa — collectively require around 137 MW of power capacity in 2025. Nigeria’s power grid is notorious for providing only around four hours of power per day, forcing data center operators to make up the difference with diesel generators that raise costs and pollution levels. Even around the capital city of Lagos, where internet connectivity is highest and 14 of the data centers are concentrated, the grid is a constant source of uncertainty.

Electrification in Africa is a multi-pronged issue with many obstacles on the path to modernization, but there is no doubt that there is a demand to be met

Overall, the AEC report states, Africa’s data center power demand capacity is forecast to achieve a CAGR of 9% between 2024 and 2030 and hit 2 GW by 2030. The total data center capacity globally, by comparison, is forecast to log a CAGR of 11% between 2024 and 2030, reaching 249 GW by year-end 2030. Adding in the power needed for cooling and other ancillary loads, the global total installed capacity is estimated at 374 GW by 2030.

The relentless demand of data centers, however, functions as a great stabilizer for attracting socially responsible capital investment in the power infrastructure. Predictably growing demand assures investors that money spent on expanding grids and developing new power generation centers will both improve lives and pay off economically. The growth of data centers also often brings with it a push for innovative power solutions, including the integration of renewable energy sources and advanced grid management technologies. Upgraded grids improve sustainability, bolster resilience, and expand the residential and commercial customer base, spreading out fixed costs and thereby reducing end users’ electricity prices over time.

In northern Africa, growing hubs such as Egypt and Morocco benefit from strategic positioning that connects Europe, Africa, and the Middle East to major internet backbone lines. Egypt offers affordable land and electricity prices, while Morocco is rapidly modernizing its infrastructure and fostering a favorable legal environment for data center growth.

Sub-Saharan Africa faces more challenges, but even here, many nations are stepping up efforts to meet the insatiable demand. In South Africa, the largest market, there is particularly strong demand for facilities around Johannesburg and Cape Town. Johannesburg benefits from a diversified mix of wholesale and retail demand and both international and local providers. South Africa is leading the continent in solar integration, with public-private projects like the 12 MW solar farm being developed by Africa Data Centres and Distributed Power Africa.

Kenya’s grid is already over 60% renewable, including geothermal, solar, wind, and hydroelectric sources. The Naivasha geothermal zone, which supplies nearly half of the country’s power, will host a planned 100 MW green data center, backed by a USD1 billion investment by Microsoft and G42. Such clean, non-intermittent power solutions give Kenya the ability to support data centers with both lower emissions and greater stability. The Kenyan government also offers tax incentives for investments in special economic zones, including a 10% corporate tax exemption for the first 10 years, and over 15% after 10 years.

Smaller countries are getting in on the game as well. Côte d’Ivoire (currently home to six data centers) launched its largest solar power plant in Boundiali in June 2023, delivering 37.5 MWp of capacity toward its national goal of sourcing 45% of its electricity from renewable energy by 2030. West Africa’s largest wind project is the Taiba N’Diaye Wind Farm in Senegal (seven data centers), while Gabon (one data center) is actively developing hydropower and attracting investment in solar hybrid systems.

Not every country will be able to confront the growing digital demand equally. Data centers are notoriously water-hungry due to the need to cool off huge banks of closely packed computers. Nations with vast areas of desert and savannah can ill afford to have data centers compete for water with agriculture and may have to rely on their neighbors through the use of regional power pools as suggested in the AEC report. Others with fewer renewable energy prospects will likely focus on developing more conventional energy sources such as oil and gas, which many have in great abundance. Even those with strong renewable sectors would be wise to develop conventional energy to achieve the reliability that other parts of the world take for granted. The AEC has long advocated the flexibility of natural gas to serve as a bridge fuel, alleviating shortages with quick ramp-up and ramp-down when renewable supplies fluctuate.

Electrification in Africa is a multi-pronged issue with many obstacles on the path to modernization, but there is no doubt  that there is a demand to be met. Building and provisioning local data centers is a powerful step toward solving some of government’s most pressing problems in any nation: improving infrastructure, growing the economy, and strengthening national security.

“The State of African Energy: 2026 Outlook Report” is available for download. Visit https://apo-opa.co/48Y4qkH to request your copy.

Distributed by APO Group on behalf of African Energy Chamber.

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SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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