24 December 2024
Stephane Duproz, SDC Consulting, vice-president
of the Africa Data Centers Association
The impact of AI on African data centres
After decades of being an emerging concept, Artificial Intelligence (AI) has very concretely become a major drive in the digital ecosystem, which resides in data centres. The amount of data centre capacity AI will require by 2030 is expected by Goldman Sachs Research to be equal to all existing global data centre capacity. In terms of power consumption, we are talking 200TWh per year to be added to the current existing 200TWh per year. What impact will this have on Africa’s data centres?
Slow uptake – in the beginning
The learning and training parts of the AI process consume a lot of data centre capacity, but these are not latency sensitive and do not need to be close to the users. Consequently, these phases will likely be hosted in regions with abundant, affordable, and sustainable power, a situation that Africa is only expected to achieve once its vast renewable energy potential is fully developed — a process that will take time.
The inference part of AI, the actual user interaction, does not need as much power and will deploy in Africa as AI services are being used, with significantly smaller data centre capacity needs. Consequently, African data centres will not see big deployment of AI-specific infrastructure in the visible future. But on the other hand, they will benefit from numerous other features AI can offer.
Driving growth in the data centre industry
AI is significantly enhancing the growth of the African data centre sector by improving efficiency and expanding operational capabilities. Traditionally, managing data centres involved extensive manual oversight, with personnel responsible for monitoring systems, identifying faults, and ensuring optimal performance. AI technologies like machine learning and predictive analytics have automated many of these processes, reducing human error and increasing reliability.
These advancements lead to significant cost savings for data centres, enabling them to reinvest in further expansion and technological upgrades. AI’s ability to predict hardware failures and conduct preemptive maintenance reduces downtime, ensuring consistent and reliable service, which is crucial for economic stability and growth.
Attracting investment
AI’s influence on the African data centre sector is also apparent in the attraction of both domestic and international investments. As AI technologies improve the performance and reliability of data centres, these facilities become more appealing to investors seeking high returns in emerging markets. AI’s optimization of energy consumption, enhancement of security, and more efficient data management can make African datacenters more competitive globally.
Countries like Kenya, Nigeria, and South Africa are already witnessing increased investment in their datacenter industries. For example, Kenya’s emphasis on renewable energy sources such as geothermal, wind, and solar power has made it a prime location for datacenter investment. AI’s ability to identify regions with cheaper and greener electricity further boosts investor confidence, ensuring sustainable and costeffective operations.
Supporting the broader digital economy
AI-driven data centres are crucial for supporting Africa’s broader digital transformation. As more businesses and governments embrace digital solutions, the demand for reliable and efficient datacenters grows. AI helps meet this demand by ensuring data is processed and stored in the most efficient manner possible, enabling businesses to operate more effectively and scale their operations.
Additionally, the rise of AI startups and AI-driven enterprises across the continent is driving the need for advanced data centre services. These startups require robust computing power and data management capabilities that datacenters can provide. This symbiotic relationship not only stimulates growth in the datacenter industry but also fosters innovation and technological advancement, contributing to the region’s overall economic development.
Job creation and skill development
The integration of AI in the data centre sector is also creating new job opportunities and necessitating the development of new skills. While AI automation may reduce the need for some manual tasks, it increases the demand for skilled professionals who can design, implement, and maintain AI systems. This shift is prompting a new wave of educational and training programs across Africa, aimed at building a workforce capable of supporting the AI-driven economy. Job creation in this sector spans various roles, from AI specialists and data scientists to cybersecurity experts and infrastructure technicians. Developing these skills not only benefits the datacenter industry but also enhances the overall skill base of the African workforce, contributing to economic diversification and resilience.
Enhancing competitiveness
AI technologies are making African data centres more competitive on the global stage. By improving efficiency, reducing costs, and enhancing security, AI-enabled data centres can offer services that rival the best ones in the world. This competitiveness attracts international businesses looking to expand into Africa, bringing investment, jobs, and technological know-how.
Moreover, AI’s ability to optimize energy usage and integrate renewable energy sources aligns with global trends towards sustainability. This alignment makes African data centres attractive to companies and investors who prioritize environmental responsibility, further enhancing their competitive edge.
AI can profoundly impact the African data centre sector, offering significant improvements in efficiency, competitiveness, and sustainability. By driving growth, attracting investment, and supporting the broader digital economy, AI is positioning Africa’s data centre industry as a key player in the global digital landscape. Embracing this technology today can position Africa as a leader in the global digital economy, driving innovation, job creation, and economic development across the continent.
