With more of South Africa’s economy going digital-only, the need for robust data centre capacity has never been more critical. This artile looks at the drivers of the modern digital revolution in South Africa, noting that a diversity of infrastructure is needed to ensure that all South Africans have equitable access to cloud digital services.
Digitalisation across numerous South African industries has long been ongoing but looming digital only systems in various areas are speeding this up. Broadcasting has already indicated it will be switching off analogue signals, and the South African Revenue Service is moving entirely from paper-based processes to online platforms.
The Government is also looking to establish digital identity and data management, as well as robust digital payment systems, as well as increasing telemedicine to serve people in remote locations.
Microsoft’s recent pledge to spend R5,4 billion in South Africa to expand is cloud and AI infrastructure by 2027, is therefore part of a rapidly expanding commercial data centre capacity investment by various operators to support this shift.
In addition to Microsoft, companies like Teraco, Africa Data Centres, Amazon, Vantage, Open Access and Equinix are pouring billions into new infrastructure to support the rapidly accelerating digital revolution.
According to Arizton Advisory and Intelligence, the South Africa data centre market size was valued at around US$2,28 billion in 2023 and is expected to reach $3,7billion by 2029. This represents a compound annual growth rate of 8,44%, including new industrial scale servers, storage systems and network infrastructure.
As more of the private and public sector goes digital, and with South Africa being a major digital hub for Africa, we can expect even faster rollout of infrastructure and downstream industries.
Data centres on their own will not be enough. They will need a thriving ecosystem of uninterrupted power supply (UPS), switchgear, cooling systems, rack cabinet providers and specialists of other mechanical infrastructure.
Furthermore, with South Africa undergoing a digital revolution, the tech sector will need to ensure that equitable access is available to all, not just those with resources.
Disadvantaged communities in townships and rural areas across the country have historically been left behind when it comes to electricity and water, and the risk is that connectivity will not reach them in a meaningful way.
The answer in bridging this digital divide lies in supporting a greater diversity of data centre operations, from enterprise scale to local community to campus to on-premises capacity.
This not only offers the most relevant cloud capacity but ensures that different customers can access digital services at an affordable price point.
For instance, a leading engineering firm may require AI-powered data management and high-end software as a service, which would come at a premium.
A township primary school network, on the other hand, may only want a basic cloud service. In this scale, scale is more critical, but in both cases uptime and energy efficiency would be crucial.
Nurturing a diverse data centre market means providing both out-of-the-box data centre systems, as well as tailored solutions.
Rectron’s comprehensive suite of data centre equipment, and trusted cloud vendor solutions offers businesses and industries, government, academic institutions and non-profit organisations the right equipment for the unique needs of their users.
An array of servers, storage, software and networking infrastructure solutions ensure their data is protected and efficiently managed, while various virtual software, applications and security systems offer access to a diversity of virtual business tools safely and cost effectively.
- Dean Matteucci, Rectron Data Centre Category head
