Africa risks missing a growing wave of investment in Artificial Intelligence (AI) and data centres unless governments address unreliable electricity and infrastructure gaps, according to KPMG, a multinational professional services firm Frank Blackmore, lead economist at KPMG Southern Africa, said shifting global investment patterns offer opportunities for African economies, but countries must build capacity to support emerging industries.
“AI may be a technology revolution, but it is also an electricity story,” Blackmore said in a statement to BusinessDay. The warning comes as demand for computing capacity, cloud services and AI infrastructure creates opportunities for African markets, although the continent’s ability to attract investment will depend on whether it can provide reliable and competitively priced power. McKinsey estimates that the continent could require $10 billion to $20 billion in data-centre investment by 2030, excluding fit-out costs.
Over the same period, the continent’s data-centre capacity could increase from about 0.4 gigawatts to between 1.5 and 2.2 gigawatts, generating an estimated $20 billion to $30 billion in revenue across the value chain. However, inadequate electricity supply remains a significant constraint. The International Energy Agency estimates that about 600 million people in sub-Saharan Africa lacked access to electricity in 2024, highlighting the scale of the continent’s energy infrastructure challenge.
Blackmore said data centres and energy-intensive industries require dependable electricity, alongside transport infrastructure, digital connectivity, skilled workers and predictable regulation. “Without reliable infrastructure, the country risks losing investment to markets better equipped to support it,” he said, referring to Nigeria’s ability to attract capital into emerging industries. He added that countries capable of providing energy security, connectivity and policy certainty would be better positioned to attract long-term investment.
Beyond AI infrastructure, changing global demand for minerals used in batteries, renewable energy and digital technologies could create additional investment opportunities for African economies.