S04 CAF 3 2020 Data Centres_Layout 1 18/06/2020 12:16 Page 12
Growth in Africa
DATA CENTRES
Why Africa needs to get closer to data Photo: Adobe Stock
Why is now a good time to be investing in data centre infrastructure in Africa? What challenges are there for companies moving into the African market? And how can Africa benefit? Phil Desmond asks Robert Mullins of First Brick Holdings what is driving the data centre boom in Africa.
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FRICA NEEDS DATA centre infrastructure. Robert Mullins, executive director of First Brick Holdings (FBH) and Raxio Data Centre, which is investing in and building Tier III data centres across Eastern and Southern Africa, says, “Mobile penetration has reached 44 per cent of sub-Saharan Africa, while 41 per cent of the population is under 15 years old. This means Africa’s growing population of digital natives is seeking out modern online services and is consuming more data than ever before. Consequently, demand for data will continue to rise, particularly as smartphones and data plans become more affordable.” Latency is another driver for data centre development. “For enterprises to deliver the ever-increasing number of sophisticated digital services that consumers demand, data centres must be built locally. When someone in Uganda tries to access a site hosted in Europe, messages travel through cables to Kenya, then under oceans to Europe, then back again. This slows down the speed and increases costs.” The key to making the internet more affordable therefore is to bring content closer to the user. In addition, digital services, when delivered by servers far away, are subject to similar latency constraints. “Services such as online gaming, and video conferencing are particularly susceptible to high latency.”
“Wider digital transformation in Africa has been stymied by a lack of adequate data centre infrastructure” But that’s not all. Deregulation across several markets has encouraged the development of technology infrastructure and liberalisation of previously state-owned sectors, such as telecoms and financial services. The coronavirus outbreak is reinforcing a shift towards remote working and digitisation. Also, Mullins says, “Local enterprises are realising that their business
12 Communications Africa Issue 3 2020
Young Africans are consuming more data than ever before.
models are IT-driven and that they need to invest in their technology infrastructure – data storage, data processing, business continuity and disaster recovery systems – to ensure their operations run smoothly.” Regulatory authorities across the region have a favourable position on investments in the space, he suggests. “Data centres are part of a wider category of digital infrastructure. By and large, governments across the region view digital infrastructure as a critical factor in driving the continued transformation of their economies and societies.” Other regulators benefit too. “A new breed of localised, state-of-the-art data centres allows regulators across different sectors to do their job better. For example, in financial services or other regulated industries, data centres allow for an environment where critical data is properly backed up and easily accessible. This ensures proper business continuity, ultimately benefiting consumers, enterprises and the society at large.” Africa’s growing number of IT-driven businesses are another sector that needs IT infrastructure. A burgeoning start-up ecosystem has to deliver high-quality digital services, which requires stable connectivity and IT platforms. In addition, regulations around business continuity and uptime are becoming more stringent. But data centre infrastructure in Africa has not always been available – or up to the job.
So, Mullins says, “It’s vital to move away from this DIY approach that lacks the in-house expertise and adequate supporting infrastructure, and provide businesses with new, modern data centres, which provide a reliable operating environment.” The current pandemic has further highlighted the need for businesses to remain agile and move towards digitisation to stay afloat. “Thus we expect a surge in demand for cloud services in the coming years.” He sums up, “It is not just about capacity, but also the quality of solutions that are available in these markets.” And for FBH this isn’t just talk. It is currently active in Uganda and Ethiopia, where its carrier-neutral Tier III data centres will go live later this year and early next year. As the fourth largest economy in East Africa and the region’s third largest broadband market, Uganda was a particularly promising prospect for the company, given a vibrant economic ecosystem, excellent terrestrial fibre connectivity, and a competitive wholesale segment where prices have been declining. “Additionally,” says Mullins, “liberalised regulation has meant that global internet companies are increasingly attracted to the market, while regulations requiring institutions to maintain primary disaster recovery sites incountry have also helped drive demand for local colocation services.” Ethiopia, meanwhile, has the fifth largest economy in sub-Saharan Africa, and is home to
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