The data center industry is evolving in Kenya with the development of largest hyper-cloud ready campus of East Africa’s in Nairobi

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1. COVID-19 has accelerated the usage of data resulting in increased demand for internet facilities as well as storage capacities.

There was sudden boost in online communication platforms like Zoom, Skype, FaceTime and Google Hangouts because people spend more time at home to avoid the spread of coronavirus. As many employees have started working from home, cloud services have become essential to ensuring they can access their work materials remotely. The convenience and security of cloud services have increased their popularity immensely. During the pandemic, as people spend more time cooped up at home, they have turned to online music and video streaming services for entertainment. This further increased the growth of Data Center Market post COVID.

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2. Shifts in creative media content towards content delivery networks, cloud services, AI and the roll out of 5G are driving the demand for data consumptions

Additional data consumption will be considerably supported by shifts in creative media content toward Video Delivery Networks (CDN), such as YouTube, Netflix, Amazon Prime, and gaming solutions, as well as the anticipated move to 4K and 8K content. Using wireless connectivity with medical devices like blood pressure cuffs enables artificial intelligence to enable speech recognition, decision-making, and language translation in addition to these other capabilities. Businesses of all sizes will increasingly adopt cloud-based services as the standard. While business is moving quickly to the cloud, this is likely to be hindered by hybrid IT solutions that combine cloud, colocation, and on-premises solutions to provide cost-effective IT solutions.

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3. Demand for BFSI and IT sector in Kenya is driven by local and international businesses’ with growing adoption of cloud-based services, and rising data usage.

Data center networks provide secure, stable, and high-quality connections to accelerate digital transformation, simplify the customer journey, and improve digital operational efficiency at banks and financial service companies. With the advent of mobile money and integration with the formal banking systems, the number of Kenyans with access to electronic financial services has grown rapidly. Online transaction has been used to offer medical insurance, microloans, transfer money to a pre-paid credit cards and others. Thus, benefit in overall growth of Data Center Market in Kenya.

4. Due to the presence of 19 DC facilities, the Kenyan data center market is anticipated to earn more than $ 100.0 Mn in revenue by the end of 2027F.

Atos and other multinational IT service providers intend to build data centers at the Mwale Medical and Technology City (MMTC) in Butere, Kenya. Large AI clusters are being built for healthcare and agriculture, which will open up opportunities for Kenyan engineers and businesspeople in the data center sector. In the upcoming years, new players will significantly accelerate market expansion by meeting the demands of regional businesses and cloud service providers. Additionally, due to a readiness to make payments online or through a mobile money account, e-commerce has a lot of potential in Kenya.

For more insights on the market intelligence, refer to the link below: -

Kenya Data Center Market Outlook to 2027F: Ken Research