Africa & Middle East Data Centre Market 201122 Dec 2010 • by Natalie Aster
London – “In the Africa & Middle East regions there is now considerable growth taking place in the Data Centre sector, with both new Carrier Based and Carrier Neutral Data Centre providers opening new facilities as part of a general uplift in IT investment taking place across both regions.”
The report “Africa & Middle East Data Centre Market 2011” by Tariff Consultancy Ltd provides a unique and timely overview of the main market trends, demand and supply drivers that are impacting the Data Centre sector in 15 countries across the geographically diverse regions of Africa and the Middle East.
The Data Centre is becoming a critical part of IT development in those countries as it is a key component in attracting local and global investment from the IP, telecoms, hosting, integrator, BPO and IT outsourcing sectors. New investment taking place from all of these sectors are seen as being a key part of modernizing and diversifying the economies of those countries.
In all countries in this report there is a substantial increase in ADSL Broadband services (sometimes from a low base) taking place together with domain name registrations and hosted websites and most of all an increase in mobile subscriptions.
But Data Centre development is still at an early stage of development in most countries throughout the region with much more growth still to come. With the exception of South Africa and parts of the Middle East – Data Centres are still at the nascent stage.
Africa & Middle East Data Centre Market 2011
Published: November 2010
Price: US$ 2,375.00
The number of Data Centre operators in each country – each with relatively small raised floor space – is less than in the established European, American or Asian markets. The total amount of raised floor space is also limited compared with Europe. There is generally a correlation between the stage of Data Centre development and the number of network access providers.
As of the end of 2010 TCL estimates that there is over 182,000 m2 of raised floor Co Location and Data Centre space in the 15 countries across the two regions. But the total amount of Data Centre space is limited compared with other established regions of the world with similar populations –with relatively low space per facility. For example, London alone has 215,000 m2 of raised floor space and Frankfurt has 165,000 m2 of raised floor space (TCL figures) with a much higher average amount of raised floor space per facility.
But raised floor Data Centre space over the period from the end of 2010 to the end of 2015 in Africa & the Middle East is set to rise year on year across the 15 countries by an average of 13%.
The new Data Centre build outs that are planned hold the prospect of reducing the gap with the introduction of more independent third party space. But in the emerging markets of Africa and the Middle East the vast majority of users still place their IT content in-house and the demand for space is still emerging.
Additionally, in many Data Centre markets in both regions, there remains a constraint on both domestic bandwidth and international submarine cable connectivity, with relatively high pricing for interconnection, and relatively highly priced domestic Broadband services and IP Transit services. High network pricing is acting as a deterrent to the development of IT services.
In many countries in Africa there is a relative lack of international submarine cable capacity. There is also a lack of an established market for content and digital providers in most developing countries which has also acted as a constraint on specialist Data Centre development. But there is a range of new international submarine cables providing capacity from Europe or Asia into Africa and the Middle East regions.
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