Showing posts with label cloud data centers in south Africa. Show all posts
Showing posts with label cloud data centers in south Africa. Show all posts

Wednesday, February 8, 2023

Future Outlook of South Africa Hyperscale Data Centre Market: Ken Research

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1.  Hyperscale Data Center Industry in South Africa has expanded at a double-digit growth rate in 2022 and is poised to climb further in 2027.

Data Center Industry in South Africa1

Hyperscale data centre sector in South Africa has grown at a CAGR of ~93% between 2017 and 2022. The surging growth is attributed to the increasing usage of digital and online platforms post-COVID-19. The increasing digital/online usage contributed to the growing demand for data storage capability, server hostage, and enhanced IT networks of enterprises. Social media usage increased from 64% in 2019 to 71% in 2020 due to the complete lockdown of the economy which resulted in the increased consumption of online content. Coupled with that, the increasing internet penetration rate between 2017 and 2022, resulted in heavy internet traffic, positively impacting the hyperscale data centre industry. With this, it is highly expected that the South Africa Hyperscale Data Center Market will grow with over 35% CAGR between 2022 and 2027E.

2. Revenue generated from large-sized hyperscale data centres contributed to the majority share of ~80% to the overall HSDC market in 2022.

Data Center Industry in South Africa2

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The revenue generated from large-sized hyperscale data centres contributed to the majority share of over 80% in 2022 out of the overall revenue generated by the hyperscale data centre industry. Demand for large-sized hyperscale data centre was driven not only by domestic customers, but also by a growing international client base in South Africa, attributed to its strategic geographic location, connecting Europe, APAC, and Middle-Eastern regions. Large-sized hyperscale data centre such as Dimension Data are adapting IaaS solutions to enhance their performance and strengthen their security measures in recent years.

3. Besides, revenue generated from extending network solutions to entities accounted for the highest share of ~40% in 2022.

Data Center Industry in South Africa3

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Revenue generated from extending network solutions to various enterprises occupies the maximum share in 2022 out of the overall revenue generated by the HSDC market. This is attributed to the ability of hyperscale data centres to house large IT networks of firms due to their infrastructural capability and bandwidth to extend a higher number of racks. Further, outsourcing data storage facility assists an enterprise in lowering their capital & operational expenditure costs, which resulted in storage solutions contributing to a 30% revenue share in 2022.

4. Low cost to enterprises and increasing data traffic are expected to enhance the demand for hyperscale data centre facilities in South Africa.

Data Center Industry in South Africa4

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Establishment of hyperscale data centers decreases the total cost of ownership of an enterprise due to optimal hardware infrastructure utilization, effective allocation of system workloads, and process transformation. In addition to this, increased awareness of environmental impacts and the government’s commitment to limit GHG emissions to 350-420 MtCO2e by 2030, is serving as a major growth driver for businesses to adapt to a process in which their data centers are utilizing the least amount of energy while having the least impact on the environment.  Moreover, the increasing internet penetration rate coupled with the rise in active internet users resulted in growing data traffic over the years. Simultaneously, due to increasing traffic, there exists a strong demand for data storage facilities ultimately contributing to the increased adoption of hyperscale data centers in South Africa.

Thursday, November 10, 2022

Overview of South Africa Hyperscale Data Center Industry: Ken Research

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The Hyperscale Data Center market in South Africa expanded at a CAGR of XX.X% in between 2017 and 2022 on the basis of revenue generated.

The evolution of hyperscale data centers is being driven by the development of sophisticated services and greater compute/storage demand, requiring data centers to find a way to put more computing capacity into smaller spaces.

South Africa Hyperscale Data Center Market is estimated to grow at a positive CAGR of XX.X% in between 2022 and 2027E.

The data center market in South Africa is emerging with key projects coming to fruition and hyperscale investments increasing.

As the demand for cloud computing solutions increases, so does the need for the supporting large scale data center infrastructure.

The number of people connecting to the internet is continuing to drive demand for data-center-based compute and connectivity.

South Africa Hyperscale Data Center Market Outlook

  • Some upcoming trends in the Hyperscale data center market are

  • Adoption of Public Cloud Services

  • Industries opting for hybrid cloud architecture

  • Accessing cloud on-ramps to avoid public internet connectivity issues

  • Colocation Facilities from multi-tenant data centers

  • Hyperscale Data Center facilities are emerging

Internet Penetration in South Africa

As of 2022, the share of the total population of South Africa using the internet was nearly XX%. This share is estimated to grow up to XX% by 2027. This would be an increase of XX% compared to 2018 when the share of the population accessing the internet in the country was XX%.

There were XX.X million internet users in South Africa in January 2022. South Africa’s internet penetration rate stood at XX.X% of the total population at the start of 2022. Internet users in South Africa increased by XXX thousand between 2021 and 2022.

Internet traffic growth in South Africa has grown by a CAGR of XX% in from 2016 to 2021, with 31 Petabytes of internet traffic per day in 2021. Most data centers in the region are working to drive down energy consumption to advance sustainability in their centers and decrease costs

Market Size

  • Hyperscale data center market in South Africa generated a revenue of USD X million in 2022, expanding at a CAGR of XX.X% in between 2017 and 2022.

  • The surging growth is attributed to the increasing usage of digital and online platforms post COVID-19.

  • The increasing digital/online usage contributed in the growing demand for data storage capability, server hostage and enhanced IT network of enterprises.

  • Social media usage increased from XX% in 2019 to XX% in 2020 due to complete lockdown of the economy which resulted in the increased consumption of online content.

  • Coupled with that, increasing internet penetration rate in between 2017 and 2022, resulted in heavy internet traffic, positively impacting the hyperscale data center market. ~XX% of the overall population were active internet users in 2022.

  • Businesses accelerating their digital transformation strategies to adapt to the shifting culture of online & digital domination contributed in the enhanced demand for cloud computing solutions post COVID-19.

  • Therefore, major hyperscale data center companies invested in expanding their business to cater to the rising demand.

  • Teraco, AWS, and Africa Data Centres among others were the major players operating in the ecosystem as of 2022.

Competitive Landscape in Hyperscale Data Center Market in South Africa, 2022

The competitive rivalry is high among the competitors. Apart from the companies building hyperscale data centers, there are various giants who are planning to set up hyperscale data centers in SA.

  • Teraco, Africa Data Centers and Dimension Data dominated the Hyperscale Data Center Market in South Africa, cumulatively contributing to the majority share of XX% on the basis of revenue generated in 2022.

  • Increasing cloud workloads have influenced companies like Amazon Web Services, Google, Microsoft, Facebook, and Apple to invest huge sums in a single campus to bring out the utmost efficiency

Future Outlook of Industry

The Hyper scale data centre market in South Africa is estimated to generate a revenue of USD XXX million in 2027, expanding at a CAGR of XX.X% in between 2022 and 2027E.

One of the major determinants for the surging growth in coming years is attributed to the favourable government rules & regulations such as Draft National Data & Cloud Policy formulated to support domestic and foreign investments in data and cloud infrastructure. Coupled with that, the National Broadband Policy launched by the government, aiming to improve broadband connectivity among users, schools and public organizations by 2030 will serve as a major demand driver for the growth of HSDC market in South Africa. Increased awareness on environmental impacts and government’s aim to limit carbon footprints by 2030 will result in businesses adapting to a strategy to utilize least amount of energy.

There has also been a drive to lessen energy consumption will act as a catalyst for the increased demand of energy efficient hyperscale data centers in coming years.

Educational institutions leveraging on technologies such as e-learning and digital collaboration coupled with corporate organizations shifting to a hybrid working environment will further contribute in boosting the demand for large scale hyperscale data center in South Africa.

Key Segments Covered

South Africa Hyperscale Data Center Market:

  • By Data Center Size (by Revenue), 2022 & 2027:

  • Large Sized

  • Small & Medium Sized

  • By Industry Users (by Revenue), 2022 & 2027:

  • IT

  • Telecom

  • Government

  • Others

  • By Solutions Provided (by Revenue), 2022 & 2027:

  • Network

  • Storage

  • Servers

  • Others

  • By End Users (by Revenue), 2022 & 2027:

  • Cloud Providers

  • Enterprises

  • Others

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Time Period Captured in the Report:

  • Historical Period: 2017-2022

  • Base Year: 2022

  • Forecast Period: 2022– 2027F

Companies Covered:

  • Teraco

  • Africa Data Centers

  • Dimension Data

  • Vantage Data Centers

  • Amazon Web Services

Key Topics Covered in the Report:

  • South Africa Hyperscale Data Centers Overview

  • Internet Penetration in South Africa

  • Cross Comparison of Data Center Market in South Africa with Other Countries

  • Ecosystem of Hyperscale Data Center Industry in South Africa

  • Business Cycle of Hyperscale Data Center Market in South Africa

  • Construction of Hyperscale Data Centre

  • Features of Hyperscale Data Center Facilities

  • Data Center Trends Driving Digital Transformation

  • Market Segmentation of Hyperscale Data Center Industry in South Africa

  • Porter Five Forces Analysis: South Africa Hyperscale Data Center Market

  • Growth Drivers of South Africa Hyperscale Data Center Market

  • Mergers, Acquisitions and Key Investments in South Africa Hyperscale Data Center Market

  • Issues and Challenges in South Africa Hyperscale Data Center Market

  • Demand Analysis

  • Competitive Landscape

  • Future Market Size of Hyperscale Data Center Industry in South Africa

  • Future Market Segmentation by Companies of Data Centers

  • Future Market Segmentation by Data Center Size

  • Future Market Segmentation by Industry Users

  • Future Market Segmentation by Solutions Provided

  • Future Market Segmentation by End Users

  • Analyst Recommendations

For more information on the research report, refer to below link:

South Africa Hyperscale Data Center Market Outlook to 2027 – Driven by the Growing Adoption of Remote Work and Surging Demand of Cloud Computing Solutions: Ken Research

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