Experts say Africa could become a major new center for data centers and artificial intelligence infrastructure as power shortages, permitting delays, and environmental concerns increasingly constrain expansion in the U.S. and Europe.
The Trump administration is encouraging American companies to make U.S. AI development a global benchmark while seeking a larger share of Africa’s technology market. Washington’s push comes as public opposition and environmental restrictions increasingly limit data-center construction in North America and Europe.
“Africa is emerging as a significant location for AI infrastructure, particularly as mature markets confront mounting constraints involving power supply and the environment,” Abhishek Goyal, a consultant at research firm Arizton Advisory & Intelligence, told Fox News Digital.
A rendering of U.S. company Cybastion’s proposed data center in Ivory Coast, West Africa. The U.S. Embassy in Abidjan helped facilitate a $170 million contract with the Ivorian government that includes the data center. (Cybastion)
Goyal said Africa’s less-developed infrastructure could be an advantage rather than a barrier. “As the U.S. and Europe face power shortages, grid congestion, permitting challenges and environmental regulations, the continent’s infrastructure gap presents a major opportunity for AI development,” he said.
A State Department spokesperson said Washington is committed to ensuring that American AI, including enabling infrastructure such as data centers, remains a global standard. The department also says it wants the U.S. to remain a preferred partner for governments and businesses seeking to upgrade telecommunications networks and AI capabilities.
With U.S. assistance, an American company won a $6.2 billion contract this year to build a data center and hydropower facility in Lesotho, a Southern African country.
Gabon’s U.S. Embassy helped secure $600 million in business for American companies in 2025. It also assisted with a $100 million contract this year to supply two data centers and a gas-to-power plant, amid strong competition from China.
A rendering of the Kobong pumped-hydro project, which U.S. company Convalt Energy plans to construct in Lesotho as part of a $6.2 billion agreement with the government facilitated by the U.S. government. (Convalt Energy)
Assistant Secretary of State for African Affairs Frank Garcia previously said the United States was helping American companies identify new markets and expand their operations in Africa under President Trump.
Arthur Goldstuck, chief executive of South African technology research firm World Wide Worx and author of “The Hitchhiker’s Guide to AI – The African Edge,” said Africa’s data-center market is growing rapidly but remains small by global standards.
“Africa will not replace the U.S. or Europe as a center of global computing because of its current lack of capacity,” Goldstuck said. “Its appeal lies in serving a fast-growing African cloud market and processing data closer to the people and businesses that create it.”
Goldstuck added that the continent offers U.S. companies access to underserved cloud and AI markets. Opportunities range from operating data centers and supplying AI chips to providing cooling systems, cybersecurity and power infrastructure. In some countries, he said, a data center can provide the long-term demand needed to make a renewable-energy project financially viable. American firms can therefore develop computing and electricity-generation capacity alongside African companies and governments.
A recent visit to the construction site of a new data center in Ivory Coast, part of a $170 million contract facilitated by the U.S. Embassy for development by Cybastion. (Clement Djakey for Cybastion)
Goldstuck said the expansion is being driven largely by demand within Africa. Installed data-center capacity remains far below that of the U.S. and Europe, while weak electricity grids complicate construction and operations. Governments, banks and major corporations are nevertheless increasing demand for local cloud and AI services. Many also want sensitive information stored within national borders, further accelerating investment.
Goyal said countries including South Africa, Kenya, Nigeria, Morocco and Egypt are attracting large-scale AI projects.
A State Department spokesperson said the U.S. government aims to provide credible solutions supported by public and private financing in priority areas such as emerging technology. The spokesperson noted that secure telecommunications networks are essential to protecting U.S. citizens and businesses, while new undersea cable networks are expanding connectivity between Africa and other regions.
The Isando Campus in Johannesburg, South Africa, which houses the Teraco Data Environments JB1 East and West, JB3 and JB5 data centers, on Sept. 28, 2025. Outside South Africa, computing resources on the continent are often expensive and limited. (Leon Sadiki/Bloomberg via Getty Images)
Goldstuck said U.S. companies could connect with African data centers through undersea cables, although distance would create some latency. Facilities in Africa would therefore be less suitable for U.S. services requiring an immediate response from American users. They could still support backups, disaster recovery and intensive AI processing if costs, security protections and legal jurisdiction were appropriate.
Analysts say weak regulation in much of Africa could encourage an uncontrolled approach to data-center development. South Africa’s government recently said the country accounts for approximately 70% of the continent’s total data-center capacity.
Pitso Tsibolane, a senior lecturer in information systems at the University of Cape Town, said South Africa currently has no public register of data-center facilities. Operators are not required to disclose their water, electricity or land use, and there are no binding performance standards against which their progress can be measured.
The Isando Campus in Johannesburg, South Africa, which houses the Teraco Data Environments JB1 East and West, JB3 and JB5 data centers, on Sept. 28, 2025. (Leon Sadiki/Bloomberg via Getty Images)
“This gap serves nobody,” Tsibolane said. “Communities cannot see what is being decided on their behalf, while responsible operators cannot distinguish themselves because no one is publishing reliable figures. South Africa has the opportunity to establish transparency, an independent factual baseline and predictable approvals early. That would benefit households, strengthen the electricity grid and reassure long-term investors.”
Goyal said Africa’s prospects remain promising because of its renewable-energy potential, including solar, wind, hydro and geothermal resources. Abundant land, relatively low development costs and expanding digital economies could also support the continent’s growing AI sector.
