Nasdaq-listed Equinix to invest $438m in South Africa’s AI data centre boom

Global data centre operator Equinix Inc. is expanding in South Africa with a planned $438 million investment, as it seeks to tap into growing demand for artificial intelligence and cloud services across Africa.

Nasdaq-listed Equinix to invest $438m in South Africa’s AI data centre boom
Rows of servers inside a data centre, reflecting rising demand for AI and cloud infrastructure.

Global data centre operator Equinix Inc. is expanding in South Africa with a planned $438 million investment, as it seeks to tap into growing demand for artificial intelligence and cloud services across Africa.

  • Nasdaq-listed Equinix is investing $438 million to expand data centres in South Africa.
  • The company provides infrastructure that powers cloud computing and AI globally.
  • Africa currently accounts for less than 1% of global data centre capacity.
  • Rising digital demand is drawing more global investment into the continent.

The US-listed firm, which provides digital infrastructure used by companies to store data and run cloud-based services, said it will build additional facilities in Johannesburg and Cape Town, according to Bloomberg.

The company opened its first South African data centre in Johannesburg in 2024 and has since acquired more land in both cities.

Sandile Dube, Equinix’s managing director for South Africa, said the company has secured about 327,000 square metres of land for future development. The expansion is expected to add roughly 160 megawatts of data centre capacity.

All investments are funded by our own balance sheet, and our intention is to do so with all of our future investments in South Africa,” he said.

The push highlights how global infrastructure firms are positioning for Africa’s growing digital economy, driven by AI, fintech and increased internet usage.

Despite this momentum, the continent still accounts for a very small share of global capacity.

Africa currently has about 409 megawatts of operational data centre capacity, less than 1 per cent of the global total. Equinix’s planned expansion will add to about 172 megawatts already under construction across the continent.

South Africa remains the region’s main hub, accounting for roughly three-quarters of Africa’s data centre capacity. Major global tech firms, including Microsoft Corp. and Amazon.com Inc., have also invested heavily in cloud infrastructure in the country.

Dube said the presence of these large cloud providers is helping to drive demand, adding that investors are increasingly looking beyond South Africa to the wider African market.

Industry estimates show South Africa’s data centre market could grow from about $2.6 billion in 2025 to more than $5 billion by 2031.

Equinix already operates in parts of West Africa but has yet to enter East Africa. The company said future expansion across the continent will depend on how its current investments perform.