| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| Africa AC-DC Power Supply in Data Center Market Size 2023 |
USD 709.46 Million |
| Africa AC-DC Power Supply in Data Center Market, CAGR |
6.93% |
| Africa AC-DC Power Supply in Data Center Market Size 2032 |
USD 1,213.03 Million |
Market Overview
The Africa AC-DC Power Supply in Data Center Market is projected to grow from USD 709.46 million in 2023 to an estimated USD 1,213.03 million by 2032, with a compound annual growth rate (CAGR) of 6.93% from 2024 to 2032.
Market drivers such as the increased demand for high-performance computing, the expansion of cloud data centers, and the growing focus on energy efficiency are propelling the market forward. Additionally, trends such as the integration of renewable energy sources and the adoption of advanced power solutions that improve the reliability and sustainability of data centers are influencing market dynamics. These trends underscore the growing need for robust power supply systems in data centers across Africa.
Geographically, the Africa AC-DC Power Supply in Data Center Market is witnessing significant growth in regions with expanding IT infrastructure and digital transformation initiatives, such as South Africa, Nigeria, and Kenya. Key players in this market include leading power supply manufacturers and data center operators, including Schneider Electric, ABB, and Emerson Electric. These companies are focusing on innovation and strategic partnerships to enhance their market presence and cater to the increasing demand for efficient power solutions.
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Market Insights
- The Africa AC-DC Power Supply in Data Center Market is projected to grow from USD 709.46 million in 2023 to USD 1,213.03 million by 2032, with a CAGR of 6.93%.
- Increasing demand for cloud services, data storage, and high-performance computing are major drivers for growth in this market.
- A growing emphasis on energy efficiency and sustainability in data centers is pushing demand for reliable and efficient AC-DC power supply systems.
- Challenges such as unreliable power infrastructure and high initial investment costs hinder market growth, particularly in emerging regions.
- Integration of renewable energy sources like solar and wind into power supply systems is a key trend enhancing sustainability in African data centers.
- South Africa, Nigeria, and Kenya are leading regions due to expanding IT infrastructure and growing digital transformation initiatives.
- Prominent market players include Schneider Electric, ABB, and Emerson Electric, driving innovation and offering energy-efficient power supply solutions.
Market Drivers
Increasing Demand for Data Storage and Cloud Services
The rapid growth of data and the increasing reliance on digital technologies are driving the demand for robust and efficient data storage solutions. As businesses and governments across Africa embrace digital transformation, the need for data storage in the form of data centers has skyrocketed. For instance, in Nigeria, the financial services group Old Mutual has transitioned its workloads almost entirely to the cloud, necessitating robust data storage solutions and efficient power supplies to support these operations. The adoption of cloud-based services is particularly prominent, with companies shifting their operations to cloud platforms to enhance flexibility, scalability, and cost-efficiency. Cloud service providers require reliable, high-performance AC-DC power supply systems to ensure seamless operations of data centers. As the demand for cloud services continues to grow, so too does the need for efficient power solutions that support these massive data operations, making the AC-DC power supply a crucial component in powering these data centers.
Rising Adoption of Edge Computing
The adoption of edge computing is another significant driver for the Africa AC-DC Power Supply in Data Center Market. Edge computing refers to the processing of data closer to the source of data generation, rather than relying on centralized data centers. This trend is gaining momentum in Africa as businesses, particularly those in the telecommunications and financial sectors, seek to reduce latency and improve real-time data processing capabilities. For instance, in East Africa, the adoption of edge computing is evident with companies like Cellulant and Kobo 360 leading the way in utilizing public cloud services for real-time data processing, which requires localized and efficient power supplies. Edge data centers, which are smaller and more localized than traditional large-scale data centers, require power supplies that are both energy-efficient and capable of supporting high-performance operations. The growing need for edge computing infrastructure in various industries necessitates the use of advanced AC-DC power supply systems to ensure operational efficiency and reliability, thus driving the demand for such power solutions in Africa’s data centers.
Focus on Energy Efficiency and Sustainability
As environmental concerns grow and energy costs continue to rise, there is an increasing focus on energy efficiency and sustainability within data centers. Africa, with its diverse climate conditions and varying energy infrastructure, faces unique challenges when it comes to power consumption and energy reliability. For instance, in South Africa, Teraco has started construction on a 120MW utility-scale solar PV power plant to provide renewable energy to its data centers, showcasing the integration of sustainable energy sources with data center operations. Data centers are known for their high energy consumption, and inefficient power supplies can lead to operational disruptions and increased operational costs. To address these concerns, there is a strong emphasis on energy-efficient AC-DC power supplies that reduce power loss, enhance performance, and support sustainable operations. Many African countries are also adopting renewable energy sources, such as solar and wind, to power data centers. These renewable energy sources require power supplies that can seamlessly integrate with renewable grids and ensure stable power delivery. The shift towards green energy and sustainable practices is driving the demand for power supplies that optimize energy consumption while meeting the operational needs of modern data centers.
Expansion of Telecom and Internet Infrastructure
The expansion of telecom and internet infrastructure across Africa is one of the key drivers for the growth of the Africa AC-DC Power Supply in Data Center Market. Africa’s telecommunications industry is rapidly expanding, with increasing internet penetration, particularly in rural and underserved areas. For instance, in South Africa, Africa Data Centres has secured funding to expand its hyperscale data centre capacity by an additional 20MW, highlighting the need for reliable and efficient AC-DC power supply systems to manage the increased load. The demand for internet services, mobile communications, and online content delivery is rising at an unprecedented rate, creating a need for expanded network infrastructure and, consequently, more data centers. Data centers must support telecommunications operations by providing reliable and uninterrupted power to ensure seamless connectivity, especially in regions with unreliable power grids. AC-DC power supply systems are essential to the functioning of telecom equipment, servers, and networking systems in data centers. As telecom operators roll out 5G networks and enhance internet connectivity, they will require more advanced and scalable data centers equipped with high-efficiency power supplies to handle the rising data traffic. The growth of the telecom sector, particularly with the advent of 5G technology, significantly contributes to the increasing demand for reliable power solutions in data centers, driving the market for AC-DC power supplies in the region.
Market Trends
Integration of Renewable Energy Solutions
One of the most prominent trends in the Africa AC-DC Power Supply in Data Center Market is the increasing integration of renewable energy sources into data center operations. As energy demands rise across the continent, many data center operators are actively seeking to reduce their carbon footprints and lower energy costs by incorporating renewable energy sources such as solar, wind, and hydroelectric power. This trend is not only environmentally driven but also reflects the growing need to ensure energy sustainability, especially in regions with unreliable or fluctuating power grids. For instance, Africa Data Centres has broken ground on a solar farm in South Africa’s Free State in collaboration with DPA Southern Africa, aiming to supply renewable energy to its data center facilities, starting with the CPT1 facility in Cape Town. Renewable energy solutions are increasingly being adopted to supplement traditional power supplies, enabling data centers to achieve a higher degree of energy efficiency. AC-DC power supplies are being designed to work seamlessly with renewable energy systems, ensuring that power is effectively converted and distributed throughout the data center. This alignment with sustainability goals is helping data centers operate more efficiently and align with both regulatory and consumer expectations for green operations.
Rise of Modular and Scalable Power Systems
Another significant trend in the African data center market is the growing demand for modular and scalable AC-DC power systems. As data centers continue to expand and evolve to support increasing data traffic, the need for flexible and scalable power supply solutions becomes more critical. Modular power systems allow data centers to expand their power capacity incrementally, based on demand, without having to invest in large, upfront power infrastructure. For instance, Eaton completed the installation of a modular power system at Africa Data Centres’ 10 MW facility in Johannesburg, which is its largest installation on the continent to date, showcasing the scalability and adaptability of modular power systems. This flexibility is particularly beneficial for data centers in Africa, where operational challenges such as fluctuating power demands and the need for cost efficiency are prevalent. With modular AC-DC power supplies, operators can quickly add new modules or upgrade existing systems as their capacity requirements change, minimizing downtime and ensuring continuous service. This trend is driving the market for innovative power solutions that offer high scalability, adaptability, and ease of installation. Modular systems also help reduce upfront capital investments required for building new data centers, making them an attractive option for companies looking to enter or expand within Africa.
Advancements in Power Efficiency and Thermal Management
As data centers become larger and more complex, managing power efficiency and thermal performance has become a key concern. The need for energy-efficient AC-DC power supplies that can handle high-performance workloads while minimizing power consumption is more pronounced than ever. In Africa, where energy costs are rising and reliable power availability can be inconsistent, efficiency is critical for operators. Current trends indicate a growing focus on developing AC-DC power supplies that deliver higher performance while minimizing power loss through advanced efficiency technologies. For instance, Africa Data Centres has signed a 20-year Power Purchase Agreement with Distributed Power Africa to supply 12 MW of renewable solar energy for its facilities in South Africa, demonstrating a commitment to sustainable energy solutions that enhance efficiency. Moreover, increasing density in data centers places greater strain on cooling systems, leading to advanced thermal management techniques that complement these efficient power systems. These advancements ensure optimal operation without overheating—a crucial factor in regions with high ambient temperatures. Innovations such as active power factor correction (PFC) and optimized switching techniques are improving conversion rates while reducing energy loss. These developments are expected to significantly enhance performance and sustainability across African data centers.
Increasing Focus on Edge Computing and Distributed Data Centers
The rise of edge computing is another key trend shaping the Africa AC-DC Power Supply in Data Center Market. As companies strive to reduce latency, improve performance, and handle growing volumes of IoT-generated data, edge data centers are becoming more prevalent across Africa. Edge computing involves processing data closer to where it is generated rather than sending it to centralized cloud facilities, enabling faster and more efficient handling of information. For instance, Open Access Data Centres (OADC) is expanding its edge data center network across South Africa with plans to deploy new facilities in locations like Pietermaritzburg, New Germany, and Mount Edgecombe to support growing demand for edge computing solutions. In regions where internet infrastructure can be limited—such as rural areas—edge computing provides businesses and governments with improved internet access and real-time processing capabilities. These smaller-scale facilities require compact yet efficient AC-DC power supply solutions capable of supporting high-density environments while ensuring minimal downtime despite fluctuating demands. As edge computing proliferates across Africa, hybrid AC-DC systems combining grid and renewable energy sources are gaining traction due to their flexibility in generation and consumption. This trend is set to shape future demand for advanced AC-DC solutions tailored for distributed networks.
Market Challenges
Unreliable Power Infrastructure
One of the primary challenges faced by the Africa AC-DC Power Supply in Data Center Market is the region’s unreliable power infrastructure. In many African countries, power supply systems are often inconsistent, with frequent outages, voltage fluctuations, and grid instability. These power disruptions can severely impact the performance and operational continuity of data centers, which rely on a steady and uninterrupted power supply. Data centers require high-quality, stable AC-DC power solutions to maintain the integrity of their operations and prevent downtime, which can be costly both financially and reputationally. To mitigate these issues, data center operators often need to invest in backup power systems, such as generators and uninterruptible power supplies (UPS), increasing their overall operational costs. The unreliability of the grid also poses a challenge when integrating renewable energy sources, as the intermittent nature of solar or wind power can further complicate energy management. Consequently, data center operators in Africa must adopt advanced power supply solutions that can manage these challenges while ensuring optimal performance and efficiency.
High Initial Capital Investment and Operational Costs
The high initial capital investment and ongoing operational costs associated with deploying AC-DC power supplies in African data centers present another significant challenge. The need for efficient, scalable, and reliable power systems requires substantial upfront expenditure in equipment, installation, and infrastructure. This is particularly challenging for smaller enterprises or those in emerging African markets, where access to capital may be limited. Additionally, the cost of energy in some parts of Africa remains high due to the reliance on diesel generators and imported power, which can drive up the operating expenses of data centers. Even as renewable energy adoption increases, the infrastructure and technology required to integrate and maintain these solutions can add further financial strain. Over time, the operational costs for maintaining power supply systems, such as cooling and maintenance of AC-DC units, can also contribute to the challenges faced by data center operators. These high costs can hinder the growth of data centers, particularly in regions where cost-efficiency is a critical factor for business success.
Market Opportunities
Expansion of Cloud and Digital Transformation Initiatives
The rapid adoption of cloud computing and digital transformation across various sectors presents a significant opportunity for the Africa AC-DC Power Supply in Data Center Market. As African businesses, governments, and enterprises increasingly move towards cloud-based solutions to improve efficiency and scalability, the demand for data centers to support these operations is rising. This trend is particularly strong in industries such as telecommunications, finance, and e-commerce, which require reliable and efficient power systems to support growing data traffic. The expansion of cloud infrastructure in Africa is driving the need for advanced AC-DC power supply systems that ensure energy-efficient operations and minimal downtime. This shift provides a key opportunity for market players to offer tailored power solutions, such as high-performance, scalable, and modular AC-DC power supplies, to meet the specific needs of emerging data centers across the continent.
Growth in Renewable Energy Integration
The increasing focus on renewable energy integration in African data centers presents another lucrative market opportunity. Many African nations are actively pursuing sustainability goals and are investing in renewable energy sources such as solar and wind to address energy reliability challenges. As data center operators seek to reduce their carbon footprint and operational costs, there is a growing need for power supply systems that can seamlessly integrate with renewable energy sources. The development of hybrid AC-DC power supplies capable of supporting both grid power and renewable energy offers a significant growth area for market players. By providing innovative solutions that enhance the sustainability of data centers, companies can tap into the rising demand for green and energy-efficient power systems, positioning themselves as leaders in a rapidly evolving market.
Market Segmentation Analysis
By Product Type
The market can be divided into three main product types: AC-DC Converters, DC-DC Converters, and UPS Systems. AC-DC Converters hold the largest share, as they are critical for converting alternating current (AC) to direct current (DC), which is essential for powering data center equipment. DC-DC Converters are increasingly being adopted for their ability to regulate voltage levels efficiently. UPS Systems are also a vital component, ensuring continuous power supply during outages, a critical feature for the reliable operation of data centers.
By Application
In terms of application, the market is segmented into Blade Servers, Micro Data Centers, Rack-Mounted Systems, and Standalone Data Centers. Rack-Mounted Systems are particularly prevalent, as they offer a compact and scalable solution for data centers, especially in African regions with space constraints. The rise of Micro Data Centers, which are smaller, localized data centers designed for edge computing, is a growing trend due to the increasing need for low-latency data processing. Blade Servers and Standalone Data Centers are also gaining traction, driven by the need for efficient power management and higher processing capabilities.
Segments
Based on product type
- AC-DC Converter
- DC-DC Converter
- UPS Systems
Based on Application
- Blade
- Micro Data Centers
- Rack-Mounted
- Standalone
Based on end User
- Government & Healthcare
- IT Industry
- Telecommunication Industry
- Others
Based on power Converter
- Multiple Output
- Quad Output
- Triple Output
- Dual Output
- Single Output
Based on Power rating
- 1000W to 10kW
- 10kW to 50kW
- 500W to 1000W
- Less Than 500W
- More Than 50kW
Based on region
- South Africa
- Nigeria
- Kenya
- Other African countries
Regional Analysis
South Africa (45%)
South Africa dominates the Africa AC-DC Power Supply in Data Center Market, holding approximately 45% of the market share. This is primarily due to the country’s well-established infrastructure, high internet penetration, and the concentration of data centers in cities like Johannesburg and Cape Town. South Africa has become a regional hub for data centers, attracting multinational companies looking to establish a presence in Africa. The country’s robust financial and telecommunications sectors are driving significant demand for data storage and processing capabilities, further fueling the need for high-performance AC-DC power supplies. South Africa’s strong economic base and access to renewable energy sources also contribute to its market leadership, as data centers increasingly adopt green energy solutions to improve sustainability.
Nigeria (25%)
Nigeria holds around 25% of the market share in the Africa AC-DC Power Supply in Data Center Market, making it the second-largest market in the region. Nigeria’s rapidly expanding telecommunications and IT sectors are significant drivers of data center demand. With a large population and growing internet usage, the country is experiencing an explosion in data consumption, requiring more extensive data storage and processing solutions. The government’s push for digitalization in public services and the increasing need for localized data processing in line with data sovereignty regulations are also contributing to the growth of data centers in the country. Despite challenges related to power infrastructure and grid instability, Nigeria presents a significant opportunity for AC-DC power supply providers, especially those offering reliable and energy-efficient solutions.
Key players
- ABB
- Advanced Energy
- Schneider Electric
- Server Technology
- Siemens
- Vertiv
- Delta Electronics
- Eaton
- EMERSON
- INVT Power
Competitive Analysis
The Africa AC-DC Power Supply in Data Center Market is characterized by intense competition among key players offering a wide range of products and solutions. ABB and Schneider Electric are leading players with a strong presence, leveraging their global footprint and extensive product portfolios that include power conversion systems and energy-efficient solutions. Vertiv and Eaton also play a significant role, providing advanced power management systems tailored to data centers’ increasing energy demands. Siemens and Delta Electronics are capitalizing on the growing trend of renewable energy integration, offering systems designed to seamlessly integrate with green energy solutions. EMERSON and INVT Power differentiate themselves with reliable backup power systems and localized support services. As the market continues to evolve, these companies are focusing on technological innovation, energy efficiency, and scalability to maintain a competitive edge, while exploring strategic partnerships and acquisitions to expand their market share.
Recent Developments
- In November 2023, ABB launched the Protecta Power panel board, a solution designed to enhance power management for industrial and commercial buildings. This product integrates digital monitoring and control technology, making it suitable for data centers requiring durability and safety in power systems. ABB continues to focus on sustainability and energy efficiency, aligning with the growing demand for renewable energy integration in African data centers.
- In October 2024, Vertiv introduced the Vertiv™ SmartRow™ solution at the 18th Data Center Summit. This modular system is designed for edge computing environments, aligning with Africa’s growing demand for distributed data centers. Additionally, Vertiv expanded its Liebert GXT5 lithium-ion UPS systems in April 2024, offering enhanced efficiency and reliability for high-density applications.
- In January 2025, Delta showcased its ICT infrastructure solutions at COMPUTEX 2024. Highlights included prefabricated power train units capable of delivering over 1.7 MW of power and containerized data center solutions designed for rapid deployment. Delta also demonstrated advanced thermal management technologies like Air-Assisted Liquid Cooling (AALC), which are crucial for high-density African data centers.
- In December 2023, Eaton launched its Rack PDU G4 featuring enhanced security and continuity for data centers. This product includes locking mechanisms and high-retention outlets to secure power cords effectively. Eaton’s focus on modularity and adaptability makes it a strong player in Africa’s evolving market.
Market Concentration and Characteristics
The Africa AC-DC Power Supply in Data Center Market is moderately concentrated, with a few key players such as ABB, Schneider Electric, Vertiv, and Siemens dominating the market. These companies leverage their strong global presence, extensive product portfolios, and technological expertise to capture significant market share. While the market is driven by innovation and the growing demand for energy-efficient and reliable power systems, it is also marked by increasing competition from both established multinational corporations and regional players offering tailored solutions. The market is characterized by rapid advancements in energy efficiency, renewable energy integration, and scalability, as data centers in Africa are evolving to handle larger volumes of data while maintaining cost-effective and sustainable operations. As such, companies must continuously innovate to meet the diverse needs of the market, which varies across regions due to different energy infrastructure challenges and digital adoption rates.
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Report Coverage
The research report offers an in-depth analysis based on Product type, Application, End User, Power Converter, Power rating and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook
- The increasing adoption of cloud computing and data-driven services across Africa will significantly boost the demand for data centers, driving the need for efficient AC-DC power solutions.
- As African data centers focus on sustainability, the integration of renewable energy sources, such as solar and wind, into power supply systems will become a key market trend, enhancing the adoption of green energy solutions.
- The rise of edge computing will increase demand for smaller, localized data centers requiring compact and efficient AC-DC power supply systems, expanding opportunities for market players.
- Advances in power conversion technologies, such as more energy-efficient AC-DC converters and modular systems, will be critical in meeting the growing power demands of data centers across Africa.
- The expansion of 5G networks and improved internet connectivity will require more data centers, fueling demand for high-performance AC-DC power supply systems in regions like South Africa and Nigeria.
- The emphasis on reducing energy consumption and lowering operational costs will drive the development and adoption of energy-efficient power supply solutions, particularly in energy-intensive data center operations.
- Countries in East and West Africa, such as Kenya and Nigeria, present untapped potential for AC-DC power supply vendors as they undergo digital transformations and increase their reliance on data-driven solutions.
- Rising data protection laws across African countries will create a need for localized data centers, driving demand for AC-DC power solutions that support these new regulatory requirements.
- Modular AC-DC power supply systems will become increasingly popular due to their scalability, enabling data centers to expand capacity without the need for major upfront investments.
- Hybrid power systems that integrate both traditional grid power and renewable sources will become the norm, providing more flexible and reliable power solutions to meet the diverse energy needs of African data centers.
