Visa's intentions to establish its initial data center on the African continent
In a significant move, Visa has opened its first African data center in Johannesburg, South Africa, marking an investment of approximately $54 million. This development is seen as a symbol of Africa's growth as a first-class digital market, extending beyond payments to AI, smart cities, and innovation.
The data center market in Africa is projected to grow significantly in the coming years, with the market valued at $3.49 billion in 2024 and expected to nearly double to $6.81 billion by 2030, growing at a CAGR of ~11.8%. This growth has caught the attention of the world's biggest tech companies, who are treating Africa as a serious digital market due to its potential.
The new data center in Johannesburg is a critical step in improving the speed and reliability of payments in Africa. By processing local transactions without routing them halfway across the globe, the center aims to strengthen the local backbone for more than 350 million unbanked African adults. The investment is also focused on financial inclusion, helping small businesses move from cash to digital payments, and preparing the network for AI-driven services like fraud detection.
However, Africa still faces challenges such as power shortages, regulatory fragmentation, and a widening skills gap, particularly in the field of cybersecurity. Approximately 68,000 cybersecurity roles remain unfilled in Africa, a concern that could potentially hinder the growth of the digital market.
Other tech giants are also increasing their presence in Africa. Microsoft is partnering with G42 to build a data center in Kenya, while Google's Equiano subsea cable has landed in Namibia with plans to link Africa to Europe. IBM is building a data center together with Microsoft in Kenya, and it is clear that every global tech giant, including Visa, sees the potential in Africa's digital market.
The momentum for the growth of data centers in Africa is undeniable, with it being the latest frontier for global tech expansion. As Africa continues to develop its digital infrastructure, it could finally become a first-class market, not just for payments, but for AI, smart cities, and innovation yet to come. However, if laws and infrastructure do not develop evenly or scale appropriately, even the most aggressive investments could encounter obstacles.
