Africa’s digital economy is entering a new phase of growth. Cloud services, digital platforms, connected technologies and artificial intelligence (AI) are transforming how organisations operate, deliver services and create value.
Behind this transformation sits an increasingly important foundation: digital infrastructure, writes Jarendra Reddy, capital projects and infrastructure leader at PwC South Africa.
Data centres have become the backbone of the digital economy, providing the computing capacity needed to support cloud services, digital platforms and emerging AI capabilities. As AI adoption accelerates, so too does the need for the infrastructure that enables it.
While AI is accelerating demand, it is not the only driver of growth. The continued expansion of cloud computing, digital commerce, connected services and enterprise digital transformation is increasing the need for secure, reliable and scalable digital infrastructure. At the same time, growing emphasis on data sovereignty, cybersecurity and the local hosting of critical workloads is encouraging governments and regulated industries to invest in domestic and regional data centre capacity. Together, these trends are expanding demand for digital infrastructure across both mature and emerging markets.
This shift is creating one of the most important infrastructure opportunities of our time.
Beyond AI: the infrastructure opportunity
Historically, data centres were viewed primarily as technology assets. Today, they are increasingly recognised as critical infrastructure alongside power, transport and water systems.
While much of the global conversation focuses on the race to develop and adopt AI, Africa’s long-term competitiveness will depend on something more fundamental: the infrastructure that makes AI possible. Every AI application, cloud service and digital platform relies on secure, reliable and scalable digital foundations. The countries that emerge as leaders in the digital economy are unlikely to be those that simply consume technology, but those that invest in the infrastructure ecosystems that enable it.
PwC’s Global Data Centre Outlook 2026-50 provides long-term forecasts on how data centre investment could evolve through 2050. PwC commissioned Oxford Economics to model data centre capital expenditure to support the analysis. The outlook assesses future investment under a central forecast, as well as alternative technology adoption and geopolitical scenarios.
Findings from PwC’s Global Data Centre Outlook 2026-50 highlight the scale of this shift. The report projects that data centres will attract US$31.6 trillion in global capital investment through 2050 as organisations build the compute capacity required to support future digital growth and AI adoption.
At the same time, PwC’s Global Infrastructure Outlook 2025-2050 forecasts that South Africa will attract US$582 billion in cumulative infrastructure investment between 2025 and 2050, including US$71 billion in digital infrastructure investment.
Together, these trends point to a future where digital infrastructure is no longer a supporting function, but a key driver of economic growth, competitiveness and innovation.
The implication is clear: as demand for AI, cloud services and digital platforms grows, competitive advantage will increasingly be shaped by the infrastructure ecosystems that support them.
Just as roads, ports, rail networks and power systems have historically enabled economic development, data centres are increasingly becoming part of the infrastructure foundation upon which economies are building.
South Africa’s opportunity
South Africa is already well positioned to play a leading role in Africa’s digital future. PwC’s Global Data Centre Outlook 2026-50 identifies South Africa as Africa’s most established data centre market and a key anchor for the continent’s digital infrastructure landscape.
This position becomes increasingly important as demand for cloud services, digital platforms, digital commerce and AI-enabled solutions continues to expand. Across Africa, cumulative data centre investment is projected to reach US$255 billion under the report’s central forecast scenario by 2050, reflecting growing demand for digital infrastructure across the continent and highlighting the scale of the region’s digital growth opportunity.
For South Africa, this represents more than a technology opportunity. It is a chance to strengthen the country’s role as a regional digital hub, attract investment, create jobs and support broader economic growth.
The opportunity is not to compete in the global AI race on the same terms as the world’s largest economies. It is to become the infrastructure platform that enables Africa’s digital economy. If South Africa can continue strengthening its position as the continent’s digital gateway, it can capture value not only from domestic demand, but from the region’s broader digital transformation.
As digital adoption accelerates across Africa, the continent’s ability to build reliable and scalable digital infrastructure will increasingly influence its competitiveness.
Why infrastructure planning matters more than ever
While the opportunity is significant, data centre growth cannot be considered in isolation. A key finding emerging from both the Data Centre Outlook and the Infrastructure Outlook is that digital infrastructure must be planned as part of a broader infrastructure ecosystem. Power, water, connectivity and transport systems increasingly need to work together to support future economic growth.
PwC’s Data Centre Outlook identifies power availability as one of the most important factors determining where future data centre investment will flow. As digital services and AI workloads become increasingly compute-intensive, access to reliable and affordable electricity is becoming a competitive advantage rather than simply an operational requirement.
This is now relevant for South Africa. PwC’s Infrastructure Outlook forecasts approximately US$83 billion in power infrastructure investment through 2050, reflecting the importance of expanding and modernising energy systems to support future growth.
Water availability and broader infrastructure readiness are also becoming important considerations as data centre capacity expands. The conversation is no longer only about where data centres are built, but whether the surrounding infrastructure can support them at scale and not at the expense of satisfying residential, and other industrial and commercial demand.
For businesses, investors and policymakers, this emphasises the importance of long-term infrastructure planning. The most successful markets are likely to be those that take a coordinated approach to power, digital, water and connectivity infrastructure rather than planning each in isolation. This aligns closely with PwC’s Infrastructure Outlook’s call for system-level planning across power, transport, digital and water networks to reduce bottlenecks and unlock growth.
Growth and sustainability must go hand in hand
As digital infrastructure expands, sustainability considerations become increasingly important. Across global markets, operators are exploring ways to improve efficiency, reduce resource consumption and integrate renewable energy into their operations.
For South Africa, this is not a choice between growth and sustainability. It is an opportunity to pursue both.
By planning infrastructure systems together rather than separately, stakeholders can help ensure that digital growth supports broader economic development while strengthening resilience and long-term competitiveness.
Trusted digital infrastructure and regional integration
As organisations and governments place greater emphasis on resilience, security and trusted digital ecosystems, digital infrastructure is becoming a strategic asset. Decisions about data centres are increasingly linked not only to technology requirements, but also to economic competitiveness, business continuity and national priorities.
PwC’s Data Centre Outlook models a scenario in which demand for local and regional digital infrastructure increases as governments and regulated industries seek greater control over critical data and digital services. Under this scenario, Africa’s cumulative data centre investment could increase from US$255 billion to US$284 billion through 2050.
Looking ahead
The conversation about data centres is no longer just a technology discussion. It is an infrastructure discussion.
South Africa is forecast to invest $582-billion in infrastructure through 2050, spanning transport, power, resources and digital infrastructure. At the same time, Africa’s cumulative data centre investment is projected to reach $255-billion by 2050 under the central forecast scenario, rising to $284-billion under a higher-growth scenario, highlighting the scale of the continent’s digital infrastructure opportunity.
The defining infrastructure challenge of the next decade will not be whether Africa participates in the AI economy. It will be whether it builds the power, connectivity, water and digital infrastructure required to compete in it.
Success will increasingly depend on how effectively countries build, connect and scale the infrastructure that underpins a digital-first economy. For South Africa and Africa more broadly, the opportunity extends beyond hosting data centres. It is about building the infrastructure ecosystem needed to support digital transformation, and long-term economic growth.
For business leaders, investors and policymakers, the message is clear: the opportunity is not only in the applications of AI themselves, but in the infrastructure that enables them. The countries that invest early, plan holistically and build at scale will be best positioned to shape Africa’s next chapter of growth.
As AI adoption accelerates, the countries that invest in the right infrastructure today will be best positioned to capture the opportunities of tomorrow.