Projected capital spending on Africa’s data centre build-out could reach $255 billion by 2050, according to a report from PwC released in September 2026. The figure, part of the firm’s Global Data Centre Outlook 2026-50, represents a small fraction of the $31.6 trillion in worldwide spending PwC anticipates over the same period. This forecast suggests the region’s growth will not be driven by artificial intelligence but rather by foundational digital infrastructure.
“Africa is the only region in this forecast whose central scenario isn’t a bet on AI,” the report states. “The region is largely buying foundational digital infrastructure that pays off regardless of which AI scenario plays out.” This investment is described as one of the lowest-risk capital expenditure stories globally. South Africa anchors the market with the most established data centre base, while Kenya, Nigeria and Ghana are identified as the most promising emerging markets. Kenya stands out for a grid that is about 95% renewable.
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The central projection hides a wide spread depending on external policy factors. Tighter export controls on advanced chips could reduce Africa’s cumulative spending to $193 billion. Conversely, if governments become less willing to rely on foreign infrastructure for essential services, spending could rise to $284 billion, making Africa the region with the largest proportional uplift in that scenario. This argument is already evident in markets like Nigeria, where local cloud platforms have become a test of digital sovereignty. The continent is not a direct target of those controls, but PwC says its limited semiconductor depth and weaker access to advanced equipment mean it absorbs a meaningful share of the knock-on disruption.
Power availability remains the primary limitation for this expansion. The report notes that policy determines how quickly electricity can be supplied to meet demand. In South Africa, transmission build-out is already visible behind the data centre boom. Jarendra Reddy, PwC South Africa’s capital projects and infrastructure leader, argues that data centres must now be planned alongside power, water, and connectivity rather than as standalone projects. PwC’s separate infrastructure outlook, which put South Africa’s total infrastructure spending at $582 billion by 2050, includes about $71 billion of digital infrastructure, Jarendra Reddy, PwC South Africa’s capital projects and infrastructure leader, wrote on 28 September 2026.
