Equinix Inc., a global operator of data centres, is set to invest $438 million in South Africa as it aims to capitalize on rising demand for artificial intelligence and cloud services across the continent.
The US-listed company, which provides critical digital infrastructure for storing data and supporting cloud-based operations, plans to construct new facilities in Johannesburg and Cape Town, Bloomberg reports.
Since launching its first South African data centre in Johannesburg in 2024, Equinix has acquired additional land in both cities to support its expansion.
Sandile Dube, Equinix’s managing director for South Africa, noted that the firm has secured approximately 327,000 square metres for future projects, which are expected to deliver around 160 megawatts of new data centre capacity.
“All of these projects are financed from our own resources, and we plan to continue funding future investments in South Africa this way,” Dube stated.
The expansion reflects how international infrastructure companies are positioning themselves to benefit from Africa’s rapidly growing digital economy, driven by AI technologies, fintech innovations, and increased internet penetration.
Despite this growth, Africa still represents a very small portion of global data centre capacity.
Currently, the continent has about 409 megawatts of operational data centre capacity, less than one percent of the worldwide total. Equinix’s expansion will add to the roughly 172 megawatts already being built across Africa.
South Africa continues to serve as the region’s central hub, hosting around three-quarters of the continent’s data centre capacity. Other major technology companies, including Microsoft and Amazon, have also made significant investments in cloud infrastructure there.
Dube highlighted that the presence of these large cloud providers is helping to stimulate demand, with investors increasingly looking beyond South Africa to the broader African market.
Industry projections suggest that South Africa’s data centre sector could grow from approximately $2.6 billion in 2025 to over $5 billion by 2031.
Equinix also maintains operations in parts of West Africa but has yet to establish a presence in East Africa. The company indicated that its future expansion across the continent will depend on the performance of its existing investments.