Colocation: A major force behind business efficiency in Africa’s data infrastructure

Written by Santosh Naraidoo, Product Manager for Colocation at SEACOM

Africa's digital economy is growing at an astonishing rate, making dependable and scalable IT infrastructure indispensable. A key component of this growth is colocation, which enables multiple clients to store their servers and networking hardware in shared, third-party data centres.

This approach is rapidly gaining traction across the continent. The African data centre market is anticipated to reach a valuation of $1.23 billion (R23 billion) by 2028, indicating a healthy growth rate of 10.64% CAGR. Recent developments in this sector point to a promising future for colocation services and the broader digital infrastructure landscape in Africa.

However, to fully appreciate the significance of colocation in driving Africa's digitalisation, it's crucial to examine its fundamental principles and the specific benefits it offers to enterprises. Colocation provides a flexible solution that meets the growing computational and storage needs of businesses across the continent, making it a key enabler of digital transformation.

Colocation: A cornerstone of digital infrastructure

Colocation facilities offer more than just space for servers. These data powerhouses provide robust infrastructure, including uninterrupted power supply, advanced cooling systems, and top-tier physical security. This comprehensive package ensures optimal performance for enterprise IT systems – a crucial offering as local businesses rapidly digitise their operations.

The role of colocation is also evolving. Edge centres are gaining prominence, bringing computation closer to data sources. This shift is critical for supporting Internet of Things (IoT) and data-driven solutions that require real-time processing. By leveraging edge computing, colocation providers are expanding their capabilities beyond traditional data storage and processing, meeting the needs of tech-savvy businesses.

The adaptability of colocation services has the potential to make them a cornerstone of Africa's digital infrastructure. From supporting start-ups to enabling multinational corporations, colocation facilities are helping to nurture the continent's diverse and rapidly growing digital economy.

An enabler of enterprise potential

Beyond infrastructure, colocation serves as a catalyst for broader business transformation. It enhances IT capabilities without the burden of infrastructure management, allowing businesses to focus on core competencies while accessing advanced data centre services.

Colocation provides a secure, scalable foundation for enterprises to optimise their IT resources. This flexibility enables businesses to adapt quickly to changing market demands, scaling their digital capabilities as needed while maintaining control over their data and applications.

Understanding colocation's impact involves comparing it with another major player in the data centre world: hyperscalers.

Hyperscale vs colocation: Finding the right fit

Hyperscale and colocation data centres serve different needs. Hyperscale centres, typically run by large cloud providers, offer massive scalability for extensive workloads. Colocation centres provide more flexible, cost-effective solutions for varying IT needs. The choice depends on factors like organisation type, IT workloads, and budget constraints.

While hyperscale centres suit large-scale cloud operations, colocation offers tailored, scalable solutions for many enterprises. This versatility positions colocation as a foundational element in Africa's evolving IT landscape. Understanding these differences is crucial as we consider how colocation is reshaping IT strategies across the continent.

Redefining IT strategies with colocation

Market growth projections and increasing demand for scalable IT solutions underscore the importance of colocation. By enabling advanced enterprise solutions and cloud transitions, colocation ensures businesses have the infrastructure to thrive digitally.

Enterprises should view it as a strategic investment to meet the demands of an increasingly digital economy. The flexibility, scalability, and cost-effectiveness of colocation make it an essential consideration for businesses navigating our rapidly changing digital landscape.