Kenya Data Center - Investment Analysis & Growth Opportunities 2021-2026

August 2021 | 92 pages | ID: KD9F3221F28EEN
Arizton Advisory & Intelligence

Abstracts

In-depth Analysis and Data-driven Insights on the Impact of COVID-19 Included in this Kenya Data Center Market Report

Kenya data center market to grow at a CAGR of 12.36% during 2021-2026.

The data center market in Kenya includes around six unique third-party data center service providers operating around nine facilities. Kenya is one of Africa's primary data center hubs and is considered the gateway to the East African region. Nairobi, the capital city, is a favorable location for data center development. In Kenya, Unaitas Sacco, a financial firm, selected Eastra Solutions for installation and commissioning services to Unaitas Data Center. Atos is investing in the development of a new data center facility in Kenya with around USD 260 million investment at the Mwale Medical and Technology City (MMTC) in Butere, Kakamega County.

KENYA DATA CENTER MARKET INSIGHTS

• Kenya is witnessing the growing adoption of digital services such as cloud, big data, and IoT driving the demand for data centers in the region.
• Most facilities in Kenya are based in Nairobi. In the coming years, the market is expected to witness data center investments in other cities, with Mombasa becoming a popular hub.
• In Kenya, on-premise data centers aid digitalization and witness enterprises shifting to cloud and colocation facilities during the forecast period.
• In 2020, Wholesale colocation contributed around 5% to the market share, and around 95% was from retail colocation in Kenya.
• In terms of server infrastructure, the demand for ODM servers among the large service operators is increasing the growth of the Kenya data center.
• Colocation service providers witnessed a strong uptake for their data center spaces by existing customers owing to the growth of COVID-19-induced demand.
• The country has the presence of several local facility operators. Global operators are entering the space by acquiring local operators or via partnerships.
• Investments in submarine cables in the market have increased over the past few years. The major investors include telecommunication providers and hyperscale operators working to create strong fiber connectivity and connections across the country.

The report considers the present scenario of the Kenya data center market and its market dynamics for the forecast period 2021?2026. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes the demand and supply aspects of the market.

KEY HIGHLIGHTS OF THE REPORT

• The growth in the physical security market depends majorly on the increasing number of new facility constructions in the Kenya data center market.
• In Kenya, there are four facilities certified by Uptime Institute as Tier III standard facilities.
• Nairobi is the home of around six existing facilities under operation. IXAfrica and Teraco Data Environments invest around four upcoming facilities in future years.
• In 2020, Huawei was involved in developing Konza smart city and data center phase 1 and phase 2 with around USD 30 million investment.
• In 2020, AWS data center partnered with Kenya’s Safaricom in East Africa, to facilitate cloud computing services that provide easy access to technologies such as big data, Internet of Things (IoT), machine learning, and artificial intelligence.

KENYA DATA CENTER MARKET VENDOR LANDSCAPE

icolo.io (Digital Realty), IXAfrica, PAIX, Teraco Data Environments, and Wingu are some of the key investors in the Kenya data center. Huawei Technologies is among the leading vendors in the modular data center space with multiple efficient and reliable deployments. All the vendors have taken precautionary measures to reduce disruptions in their supply chain operations. The most commonly adopted servers in the industry include rack and blade servers from Cisco Systems, HPE, Dell Technologies, IBM, and Lenovo.

IT Infrastructure Providers

• Arista Networks
• Atos
• Cisco Systems
• Dell Technologies
• Hewlett Packard Enterprise (HPE)
• Huawei Technologies
• IBM
• Lenovo
• NetApp

Construction Contractors & Sub-Contractors

• Chess Enterprises
• Copy Cat Group
• Eastra Solutions
• Egypro
• Future-tech
• HubTech
• Kinetic Controls
• Norkun Intakes
• Remax Consult
• Tetra Tech
• Westwood Management

Support Infrastructure Providers

• ABB
• Carrier
• Caterpillar
• Cummins
• Delta Electronics
• Eaton
• Fuji Electric
• Legrand
• Rolls-Royce Power Systems
• Rittal
• Schneider Electric
• Siemens
• STULZ
• Vertiv

Key Investors

• icolo.io (Digital Realty)
• IXAfrica
• PAIX Data Centres
• Teraco Data Environments
• Wingu

REPORT COVERAGE:

This report analyzes the Kenya data center market share and elaborative analysis of the existing and upcoming facilities, datacenter investments in terms of IT, electrical, mechanical infrastructure, general construction, tier standards, and geography. It discusses market sizing and investment estimation for different segments. The segmentation includes:

EXISTING VS. UPCOMING DATA CENTERS

• Existing Facilities in the region (Area and Power Capacity)
• Nairobi
• Other Cities
• List of Upcoming Facilities in the region (Area and Power Capacity)

KENYA DATA CENTER INVESTMENT COVERAGE

• Infrastructure Type
• IT Infrastructure
• Electrical Infrastructure
• Mechanical Infrastructure
• General Construction
• IT Infrastructure
• Server
• Storage Systems
• Network Infrastructure
• Electrical Infrastructure
• UPS Systems
• Generators
• Transfer Switches and Switchgears
• PDUs
• Other Electrical Infrastructure
• Mechanical Infrastructure
• Cooling Systems
• Rack Cabinets
• Other Mechanical Infrastructure
• Cooling Systems
• CRAC & CRAH Units
• Chillers
• Cooling Towers, Condensers, and Dry Coolers
• Economizers & Evaporative Coolers
• Other Cooling Units
• General Construction
• Building Development
• Installation and Commissioning Services
• Building & Engineering Design
• Physical Security
• DCIM
• Tier Segments
• Tier I & Tier II
• Tier III
• Tier IV
• Geography
• Nairobi
• Other Cities

KEY QUESTIONS ANSWERED:

1. What is the expected CAGR for the Kenya Data Center Market for the forecast period?
2. What are the investment opportunities in the industry?
3. What are the latest trends in Kenya Data Center Market?
4. What are some existing and upcoming Data Centers in Kenya?
5. Who are the key participants for Data Center Market in Kenya?

Contents

CHAPTER 1 : EXISTING & UPCOMING THIRD-PARTY DATA CENTERS IN KENYA

9 UNIQUE DATA CENTER PROPERTIES

Data Center IT Load Capacity
Data Center White Floor Area Space
Existing Vs Upcoming Data Center Capacity by Cities
Cities Covered
o Nairobi
o Other Cities

CHAPTER 2: INVESTMENT OPPORTUNITIES IN KENYA

Data Center Investments
Investment by Area
Investment by Power Capacity

CHAPTER 3: DATA CENTER COLOCATION MARKET IN KENYA

Colocation Services Market in Kenya
Retail Colocation
Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-ons

CHAPTER 4: MARKET DYNAMICS

Market Drivers
Market Trends
Market Restraints

CHAPTER 5: MARKET SEGMENTATION

IT Infrastructure: Market Size & Forecast
Electrical Infrastructure: Market Size & Forecast
Mechanical Infrastructure: Market Size & Forecast
General Construction Services: Market Size & Forecast

CHAPTER 6: TIER STANDARD INVESTMENT

Tier I & II
Tier III
Tier IV

CHAPTER 7: GEOGRAPHIC SEGMENTATION

Nairobi
Other Cities

CHAPTER 8: KEY MARKET PARTICIPANTS

IT Infrastructure Providers
Construction Contractors
Support Infrastructure Providers
Data Center Investors

CHAPTER 9: APPENDIX

Market Derivation
Quantitative Summary

List Of Exhibits

LIST OF EXHIBITS

Exhibit 1 Third-Party Data Centers Snapshot
Exhibit 2 Third-Party Data Center Snapshot by Locations
Exhibit 3 Area Developed by Cities (thousand square feet)
Exhibit 4 Power Capacity by Cities (MW)
Exhibit 5 Data Center Market Size & Forecast by Investment ($ Million)
Exhibit 6 Data Center Market Size & Forecast by Area 2020?2026 (Thousand Square Feet)
Exhibit 7 Market Size & Forecast by Power Capacity 2020?2026 (MW)
Exhibit 8 Data Center Colocation Service Revenue: Market Size & Forecast by 2020?2026 ($ Million)
Exhibit 9 Retail Colocation Pricing 2020
Exhibit 10 Market Size & Forecast by IT Infrastructure 2020?2026 ($ Million)
Exhibit 11 Market Size & Forecast by Electrical Infrastructure 2020?2026 ($ Million)
Exhibit 12 Market Size & Forecast by Mechanical Infrastructure 2020?2026 ($ Million)
Exhibit 13 Market Size & Forecast by Cooling Systems 2020?2026 ($ Million)
Exhibit 14 Market Size & Forecast by General Construction 2020?2026 ($ Million)
Exhibit 15 Market Size & Forecast by Tier Standards 2020?2026 ($ Million)
Exhibit 16 Market Size & Forecast in Nairobi by Investment 2020?2026 ($ Million)
Exhibit 17 Market Size & Forecast in Nairobi by Area 2020?2026 (Thousand Square Feet)
Exhibit 18 Market Size & Forecast in Nairobi by Power Capacity 2020?2026 (MW)
Exhibit 19 Market Size & Forecast in Other Cities by Investment 2020?2026 ($ Million)
Exhibit 20 Market Size & Forecast in Other Cities by Area 2020?2026 (Thousand Square Feet)
Exhibit 21 Market Size & Forecast in Other Cities by Power Capacity 2020?2026 (MW)

List Of Tables

LIST OF TABLES

Table 1 List of Upcoming Data Center Projects
Table 2 Data Center Site Selection Criteria
Table 3 Overall Market Size & Forecast 2020?2026
Table 4 Market Size & Forecast by Infrastructure 2020?2026 ($ Million)
Table 5 Market Size & Forecast by IT Infrastructure 2020?2026 ($ Million)
Table 6 Market Size & Forecast by Electrical Infrastructure 2020?2026 ($ Million)
Table 7 Market Size & Forecast by Mechanical Infrastructure 2020?2026 ($ Million)
Table 8 Market Size & Forecast by Cooling Systems 2020?2026 ($ Million)
Table 9 Market Size & Forecast by General Construction 2020?2026 ($ Million)
Table 10 Investment Market Size & Forecast by Tier Standards 2020?2026
Table 11 Investment Market Size & Forecast by Nairobi 2020?2026
Table 12 Investment Market Size & Forecast by Other Cities 2020?2026