The development of the Kenyan data center market will be largely influenced by factors such as increasing demand from SMEs and increasing internet penetration rates in the country.
Robust growth of data centers: More than half of African online shoppers came from Nigeria, South Africa, and Kenya. Over the past few years, e-commerce in Kenya has grown dramatically, especially among small and medium-sized firms, which has aided in the expansion of data centers in the area. Additionally, the industry expanded as a result of the increased investment in Kenyan data center companies. The Kenyan data center market experienced rapid expansion as a result of rising digitalization, cloud-based technologies, big data analytics, and the use of smart devices.
Increase in Cloud-Based Services and Shift Towards CDN: Businesses of all sizes are increasingly adopting cloud-based services as the standard. While business is moving quickly to the cloud, a hybrid solution that combines cloud, colocation, and on-premises solutions to give cost-effective IT solutions is likely to have an impact. The predicted move to 4K and 8K content, together with shifts in creative media material toward Content Delivery Networks (CDN), such as YouTube, Netflix, Amazon Prime, and gaming solutions, greatly support increased data consumption.
Digital Transformation with Critical Connectivity Across East Africa: Kenya is undergoing a digital transition, and Nairobi, Africa's "Silicon Savannah," is teeming with technopreneurs and international corporations looking to profit from the country's and the region's technological and digital change. The most connected data center facility in East Africa is East Africa Data Centre, which is situated in Nairobi's Sameer Industrial Park. Due to its accessibility to carrier networks throughout the area, it is referred to as the "ideal hosting location".
Lack of focus from foreign investors: A large amount of electricity is required for data centers. Government support is necessary to meet Africa's needs for data center infrastructure in terms of water, land, and power. However, the Eskom situation is not being effectively managed by African countries. In addition, one of the main problems in Kenya's data center business is a lack of investment. Kenya is the least connected country in the world, which causes foreign investors to give it little attention.
Analysts at Ken Research in their latest publication “Kenya Data Center Market Outlook to 2027F - Growing Demand from SMEs, Rising Internet Penetration Rate and Rising Number of Facilities to Drive the Kenyan Data Center market in the near future” observed that Kenya Data Center Market is in a growing phase. Improvement in network connectivity, government support, and rapid growth in the adoption of big data, and IoT services are some of the factors that will contribute to the Kenya Data Center market growth over the period of 2022-2027F. It is expected that the Kenya Data Center Market will grow at a CAGR of 21.6% for the above-forecasted period.
Key Segments Covered in the report
Kenya Data Center
- By Vertical
- Managed
- Co-Location
- Hyperscale
- By Type of Co-Location
- Retail
- Wholesale
- by End User Industry
- BFSI
- IT/ITES
- E-Commerce
- Government
- Others
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Key Target Audience
- Data Center companies
- Cloud providers (Domestic and Global)
- Managed data center companies
- Co-location data center companies
- Private Equity and Venture Capitalist
- Industry Associations
- Data Center Constructors
- Technology providers
Time Period Captured in the Report:
- Historical Period: 2017-2022
- Base Period: 2022
- Forecast Period: 2022-2027F
Companies Covered:
- io
- IX Africa
- Africa Data Centers
- PAIX (Pan African IX Data Centers Kenya Ltd.)
- Safaricom
- Telkom Kenya
Key Topics Covered in the Report
- Market Overview and Genesis of Kenya Data Center Market
- Cross Comparison of the DC Market in Kenya with Other Countries (Based on Market Stage, Competition, Number of Data Centers, and Major regions)
- Market Size Analysis, 2017 to 2022
- Market Segmentation of Kenya Data Center Market
- End User Analysis Kenya Data Center Market
- Challenges and Bottlenecks in Kenya Data Center Market
- Enablers & Growth Drivers in Kenya Data Center Market
- Trends and Developments in Kenya Data Center Industry
- Reseller Mechanism in the Data Center Market in Kenya
- Competition Framework of Kenya Data Center Market
- Pricing Analysis of Kenya Data Center Market
- Impact of COVID-19 on Kenya data center
- Future Outlook of Kenya Data Center Market
- Case Study
- Analyst Recommendation
For more information on the research reports, refer to below link:
Kenya Data Center Market Outlook to 2027F: Ken Research
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