Africa Draws $6.2 Billion in AI Data Center Deals as US and Europe Hit Power Limits
Updated
Updated · Fox News · Sep 13
Africa Draws $6.2 Billion in AI Data Center Deals as US and Europe Hit Power Limits
2 articles · Updated · Fox News · Sep 13
Summary
$6.2 billion in Lesotho projects, a $170 million Ivory Coast contract and a $100 million Gabon deal show Africa emerging as a new AI data-center growth market for U.S. companies.
Power scarcity, grid congestion, permitting delays and environmental restrictions in the U.S. and Europe are pushing developers toward African markets with cheaper land, underbuilt infrastructure and renewable-energy potential.
Analysts say the opportunity is still mainly regional: Africa starts from a small base, with South Africa holding about 70% of the continent’s data-center capacity and many countries still facing expensive, scarce computing resources.
U.S. officials are backing the push as a strategic contest with China, promoting American AI infrastructure as the "gold standard" while embassies help secure contracts and telecom links such as new undersea cables.
Weak regulation remains a key risk, with experts warning that poor disclosure on electricity, water and land use could create a "wild west" market even as demand for local cloud and AI services rises.