Green Data Centre: MDXi, others to drive growth across Africa, Middle East

Green Data Centre: MDXi, others to drive growth across Africa, Middle East

Nigeria’s MDX-i Lekki Data Centre has emerged among key players driving green data centre growth in a study that analysed the Middle East and Africa landscape.

This is one of the highlights of the “Middle East & Africa Green Data Centre Market – Industry Outlook & Forecast 2022-2027” by Research And Market, which expects the Middle East and Africa green data centre market to reach a value of $1.58 billion by 2027 from $690 million in 2021, growing at a CAGR of 14.81% during 2022-2027.

Nigeria’s MDX-i, owned by MainOne, which was acquired by Equinix in a $320 million deal, was opened in April 2022, and was built as a modular data centre facility according to Tier III standards, the report says.

The Middle East and Africa, the report authors say, have both witnessed significant investments in modular data centre deployment, which offers several efficiency-related benefits, including the opportunity for expansion based on business requirements, and lesser use of cement, among other things.

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File photo shows Mr. Babajide Sanwo-Olu, Lagos State Governor, cutting the ribbon at the launch of MDXi Lekki II Data Centre in Lagos, Nigeria. Photo credit: MainOne.

“The MEA region is witnessing a surge in demand for data centres due to the growth of the digital economy, increasing internet penetration, and the adoption of cloud-based services. However, data centres consume significant amounts of energy, leading to a surge in carbon emissions. To address this issue, governments in the region are promoting the adoption of green data centres, which consume less energy and are powered by renewable energy sources.”

Green Data Centre: Hyperscale operators stacking up on renewable energy

Modular data centre build outs like that of MDX-i, tackle challenges such as a high power usage effectiveness (PUE), high operational costs of traditional data centres, and high environmental impact, according to the report.

The report highlights the increasing government interest in curbing carbon emissions and the growing trend of hyperscale operators stacking up on renewable energy power purchase agreements (PPAs) as key drivers of growth in the region.

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Ms. Funke Opeke, MainOne Founder and CEO.

The MEA region is witnessing a surge in demand for data centres due to the growth of the digital economy, increasing internet penetration, and the adoption of cloud-based services. However, data centres consume significant amounts of energy, leading to a surge in carbon emissions. To address this issue, governments in the region are promoting the adoption of green data centres, which consume less energy and are powered by renewable energy sources.

“The MEA green data centre market is witnessing a significant growth trend, driven by the region’s commitment to reducing carbon emissions and meeting the United Nations’ Sustainable Development Goals,” the report says. “The growth in demand for data centres, coupled with the need to reduce carbon emissions, has led to the adoption of green data centres in the region.”

It underscores the growing trend of hyperscale operators in the region stacking up on renewable energy PPAs as a key driver of growth in the MEA green data centre market. Hyperscale operators are large-scale cloud service providers that operate data centres on a global scale. These operators are increasingly looking to power their data centres with renewable energy sources to reduce their carbon footprint.

“The trend of hyperscale operators stacking up on renewable energy PPAs is a major driver of growth in the MEA green data centre market,” the report says. “These operators are looking to power their data centres with renewable energy sources to reduce their carbon footprint and meet their sustainability goals.”

The report also provides an overview of the competitive landscape in the MEA green data centre market, highlighting the key players operating in the region. 

The MEA green data centre market accounts for around 10% of the overall data centre market in the region. “The region, primarily Africa-based countries,” according to the report, “has been slow in adopting efficiency in operations due to lower fund availability. However, investment is expected to grow with more funding flowing into the industry and global operators entering the market.”

The MEA green data centre market accounts for around 10% of the overall data centre market in the region. “The region, primarily Africa-based countries,” according to the report, “has been slow in adopting efficiency in operations due to lower fund availability. However, investment is expected to grow with more funding flowing into the industry and global operators entering the market.”

Colocation operators in the MEA green data centre market, such as Equinix, Moro Hub, Digital Realty, Gulf Data Hub, and Rack Centre, have been investing in efficient operations to achieve their sustainability goals.

“The MEA green data centre market is highly competitive, with a large number of players operating in the region,” the report says. “Key players are focused on developing innovative solutions to meet the growing demand for green data centres in the region.”

The report, which forecasts the MEA green data centre market’s growth between 2022 and 2027 predicts that the market will grow at a CAGR of 22.3% during the forecast period, driven by the increasing demand for data centres and the growing trend of hyperscale operators stacking up on renewable energy PPAs.

“The MEA green data centre market is expected to witness strong growth between 2022 and 2027, driven by the increasing demand for data centres and the need to reduce carbon emissions.”

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