Data-Centre Boom: Nvidia AI Factory in Kenya, US$3.6bn Market by 2031
Monday, 20 July 2026
Atlantic Digest Business & Technology Desk
Africa’s data-centre industry is on course for rapid expansion, with analysts projecting the market will reach US$3.6 billion by 2031, driven by surging demand for cloud computing, artificial intelligence (AI) and digital services across the continent.
Industry forecasts indicate the sector will grow at a compound annual growth rate (CAGR) of nearly 16 percent over the next five years, reflecting Africa’s increasing importance in the global digital economy. The expansion is being fuelled by rising internet usage, digital transformation initiatives and growing investment in AI-powered infrastructure.
A major milestone in this transformation is Nvidia’s planned AI factory in Kenya. The facility is expected to operate approximately 12,000 Graphics Processing Units (GPUs), providing the computing power required for advanced artificial intelligence research, machine learning and high-performance data processing. The project is expected to become one of the continent’s largest AI computing centres.
Kenya is also set to host East and Central Africa’s first GPU-powered AI hub, which will be deployed through iXAfrica in Nairobi. The facility is expected to provide businesses, researchers and technology startups with access to cutting-edge computing resources, strengthening Africa’s capacity to develop home-grown AI solutions.
Experts note that the rapid growth of artificial intelligence is transforming the architecture of modern data centres. Traditional facilities built primarily around Central Processing Units (CPUs) are increasingly being replaced by GPU-centric systems capable of handling the massive computational demands of AI applications, cloud services and large language models.
Nigeria, Kenya and South Africa are expected to remain the continent’s leading markets for data-centre investment, benefiting from expanding digital economies, improved connectivity and growing demand for secure data storage and cloud infrastructure. These countries are attracting increased interest from global technology companies seeking to establish regional AI and cloud operations.
Despite the positive outlook, analysts warn that a shortage of skilled professionals could slow the industry’s growth. Africa is projected to face a deficit of hundreds of thousands of information technology specialists by 2030, particularly in cloud engineering, cybersecurity, artificial intelligence and data-centre management.
Industry leaders are therefore calling for greater investment in digital skills development, technical education and workforce training to ensure the continent can fully capitalise on the opportunities presented by the AI revolution.
As investment in cloud computing and artificial intelligence accelerates, experts believe Africa’s expanding data-centre ecosystem will play a critical role in supporting innovation, economic diversification and digital transformation, positioning the continent as an increasingly important player in the global technology landscape.
