Another Wave of Colonization? Africa

Most of Africa’s data are currently stored elsewhere, zipping down undersea cables that often make landfall in the French city of Marseille….An upheaval is overdue. Africa has more internet users than America, but only as much data-center space as Switzerland.  The boom is partly driven by regulation. Two dozen African countries have passed data-protection laws, or are planning to do so. They often require certain data, such as personal information, to be kept in the country. Another boost comes from competition, says Jan Hnizdo of Teraco, a leading data center in South Africa, where liberalization of the telecoms industry created space for such firms to flourish.

Capital is pouring in. Teraco is building Africa’s largest stand-alone data center in Johannesburg, with backing from foreign funds. Actis, a private-equity firm, is putting $250m into the industry, starting with a majority stake in a Nigerian company, Rack Centre. American investors founded Raxio with an eye on less fashionable markets, from Uganda to Mozambique.

Data centers need power, and lots of it. Keeping their equipment cool consumes almost as much energy as running it, which is why centers are usually in chilly places such as Scandinavia or America’s Pacific north-west. Most of Africa is hot and has a lot of power cuts…To keep servers running, many centers use polluting and expensive diesel generators. Yet the potential gains from offering better connectivity and faster internet services in Africa outweigh the difficulties. Microsoft and Amazon are bringing their cloud services to the region, and have opened data centres of their own in South Africa. Huawei has helped build one for the government of Senegal. Google and Facebook are both involved in projects to lay new cables around Africa’s coasts

Excerpts from Seeding the cloud: Data centers are Taking root in Africa, Economist, Dec. 4, 2021

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