Kenya Data Center Market Outlook to 2027F
Growing Demand from SMEs, Rising Internet Penetration Rate and Rising Number of Facilities to Drive the Kenyan Data Center market in the near future
December 2022
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About the Report
About the Report
The report provides a comprehensive analysis of the potential of the Data Centers in Kenya. The report also covers an overview of Data Center Markets, market size in terms of revenue generated, and the Kenya Data Center and Co-Location Industry.
Its market segmentations include by Vertical, by Type of Co-Location, by End User Industry; challenges and pain points, growth enablers and drivers; regulatory framework; competitive landscape including competition scenario, Kenya Data Center Market Size. The report concludes with future market projections for each product segmentation and analyst recommendation.
Market Overview:
According to Ken Research estimates, the Kenya Data Center Market – which grew from approximately USD ~30.0 Mn in 2017 to approximately USD ~50.0 Mn in 2022 – is forecasted to grow further into USD ~130.0 Mn opportunity by 2027F, owing to the improvement in network connectivity, government support, and rapid growth in the adoption of big data, and IoT services.
- Africa Data Centers, is strongly expanding in Nairobi, Kenya by launching new data centers.
- Kenya has 46 internet users per 100 and the connectivity ecosystem is made up of 10 colocation data centers, and 19 cloud service providers.
Key Trends by Market Segment:
By Vertical: Co-location has traditionally been the most opted-for service because co-location data centers allow businesses to quickly scale up their IT infrastructure and thus is the major revenue contributor in the market.
By Co-Location: The data center market is penetrated by retail co-location data centers because there is a dominant presence of small players who take up colocation spaces (retail).
Competitive Landscape
Kenya data center market is consolidated market with approximately 8-10 players operating in the market. Market is in Growth Stage due to Expansion in terms of new DC facilities, Hyper scalable campuses, increasing service offerings and more.
Future Outlook
The Kenya Data Centre Market witnessed significant growth during the period 2017-2022, owing to growing demand from SMEs, rising internet penetration rate and rising number of facilities to drive the Kenyan Data Centre market in the near future.
The growth rate of the Data centre market in Kenya is going to increase over the period as there will be rising investment to expand capacity and increase in the critical connectivity across east Africa.
Scope Of The Report
Scope of the Report
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By Vertical |
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By Type of Co-Location |
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By Tier Level |
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Products
Products
Key Target Audience – Organizations and Entities Who Can Benefit by Subscribing This Report
- Data Center companies
- Cloud providers (Domestic and Global)
- Managed data center companies
- Co-location data center companies
- Private Equity and Venture Capitalist
- Industry Associations
- Data Center Constructors
- Technology providers
Time Period Captured in the Report
- Historical Period: 2017-2022
- Base Period: 2022
- Forecast Period: 2023-2027F
Companies
Major Players Mentioned in the Report
Data Center Companies:
- icolo.io
- IX Africa
- Africa Data Centers
- PAIX (Pan African IX Data Centers Kenya Ltd.)
- Safaricom
- Telkom Kenya
Table of Contents
Table of Contents
1. Executive Summary
1.1 Executive Summary: Kenya Data Center Market
2. Country Overview
2.1 Kenya Country Overview
2.2 Kenya Population Analysis (Population by Age, Gender, and Major Cities, Average Birth and Death rate)
2.3 Kenya Digital Economy (Mobile Connections, Internet Usage, Number of prepaid and postpaid mobile subscriptions by operator, and Number of mobile internet users)
3. Regional Analysis of DC Market
3.1 Cross Comparison of DC Market in Kenya with Other Countries (Based on Market Stage, Competition, Number of Data Centers, and Major regions)
3.2 Cross Comparison of DC Market in Kenya with Other Countries (Key Players, Challenges, and Growth Drivers)
4. Market Segmentation of Kenya Data Center Market
4.1 Supply Side Ecosystem
4.2 Demand Side Ecosystem
4.3 Business Cycle and Genesis of Kenya Data Center Market
4.4 Timeline of Kenya Data Center Market
4.5 Penetration of Data Centers in Kenya
4.6 Reseller Mechanism in the Data Center Market in Kenya
4.7 Market Size Analysis of Kenya Data Center Market, 2017-2022
5. Market Segmentation of Kenya Data Center Market
5.1 Segmentation By Vertical in Kenya Data Center Market, 2022 (Based on Co-Location, Managed and Hyperscale Data Center)
5.2 Segmentation By Co-Location on the basis of Revenue, 2022 (Based on Retail and Wholesale Data Center)
6. End User Analysis Kenya data Center Market
6.1 By Type of End Users in Kenya Data Center Market, 2022 (BFSI, IT/ITes, E-Commerce, Government, and Others)
6.2 Data Center End User Analysis (Hubs, Purpose of Usage, Preference)
6.3 Understanding the Decision Making Parameters (Price, Technology and Functionality, Network Connectivity, Security, Certification, No. of Facilities, Client Base, Value Added Service)
6.4 Snapshot on BFSI Industry in Kenya
6.5 Snapshot on IT/ITes Industry in Kenya
6.6 Snapshot on E-commerce Industry in Kenya
7. Snapshot of Data Construction Companies in Kenya Data Center Market
7.1 Data Center Construction Industry Structure & Project Flow
7.2 Core Data Centre Infrastructure
7.3 Role of Key Stakeholders in Data Center Construction Industry
7.4 Factors Leading to Outsourcing of Data Center Construction Industry
8. Industrial Analysis of Kenya Data Center Market
8.1 SWOT Analysis of Kenya Data Center Market
8.2 Challenges and Bottlenecks in Kenya Data Center Market
8.3 Enablers & Growth Drivers in Kenya Data Center Market
8.4 Demand Drivers for Data Consumption
8.5 Impact of AI on DC operations in Kenya
8.6 Trends and Developments in Kenya Data Center Industry
9. Competition Framework of Kenya Data Center Market
9.1 Competitive Landscape
9.2 Kenya Data Center Market Growth Quadrant
9.3 Market Share of Major Players on the basis of number of data centers, racks, white space, and available racks, 2022
9.4 Market Share of Major Players on the basis of White space, 2022
9.5 Market Share of Major Players on the basis of Number of Data Centers, 2022
9.6 Market Share of Major Players on the basis of Number of Racks, 2022
9.7 Market Share of Major Players on the basis of Available Racks, 2022
9.8 IT Load (MW) of Data Center Companies in Kenya, 2022
9.9 Strength and Weakness of Players in Kenya Data Center Market
9.10 Cross Comparison of Major Players in Kenya Data Center Market
10. Pricing Analysis of Kenya data Center Market
10.1 Average Pricing Analysis
11. Impact of COVID-19 on Kenya data center
11.1 COVID Impact on the Kenya Data Center
12. Future Outlook of Kenya data Center Market
12.1 Future Market Size Analysis of Kenya Data Center Market, 2022-2027F
12.2 Future Market Segmentation Analysis of Kenya Data Center Market, By Vertical, 2027F
12.3 Future Market Segmentation Analysis of Kenya Data Center Market, By End Users, 2027F
12.4 Future Data Center Projects in Kenya
12.5 Timeline of Data Centers in Today, Tomorrow and Future
13. Case Study
13.1 Case Study of China Telecom Corporation Limited
13.2 International Case Study – Google Data Center
13.3 International Case Study- Sify Solution to a Retail Giant
13.4 Case Study: Alibaba Cloud
14. Analyst Recommendation
14.1 Future Opportunities for Kenya Data Center Market
14.2 Data Center Demand to Transition from Captive to Co-location and IaaS-based offerings
14.3 Growth Potential & Exit in Kenya Data Centre Market
14.4 Key Attributes for Success of Kenya Data Center Market
14.5 Outlook to Stakeholders Viewpoints and Opportunities
15. Research Methodology
15.1 Market Definitions and Assumptions and Abbreviations
15.2 Market Sizing Approach
15.3 Consolidated Research Approach
15.4 Sample Size Inclusion
15.5 Primary Research Approach
15.6 Limitation and Future Conclusion
Disclaimer
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Research Methodology
Research Methodology
Step 1: Identifying Key Variables: Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.
Step 2: Market Building: Exhaustive secondary research done on the Data Center Market. Gathered information on the Data Center Market from several industry articles, company websites, blogs, industry reports and also gathered data points from our proprietary database.
Step 3: Validating and Finalizing: Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.
Step 4: Research output: Our team will approach multiple data center providing channels and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from car finance providers.
Frequently Asked Questions
Frequently Asked Questions
What is the Study Period of this Market Report?
The Kenya Data Center Market is covered from 2017–2027F in this report, including a forecast for 2023-2027F.
What is the Future Growth Rate of the Kenya Data Centers Market?
The Kenya Data Center is expected to witness a CAGR of ~21.6% over the next five years.
What are the Key Factors Driving the Kenya Data Centers Market?
Improvement in network connectivity, government support, and rapid growth in the adoption of big data, and IoT services.
Which is the Largest Segment based on By Co-Location within the Data Centers market?
Retail Co-Location held the largest share of the Co-Location in the Data Centers Market in 2022.
Who are the Key Players in the Data Centers Market?
icolo.io and IX Africa Data Center are the major players in the Kenya data center market
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