The ever-increasing volumes of data being generated and processed globally is driving a change in data strategies and rapid evolution in data centres, as organisations grapple with the challenge of storing, securing and harnessing this data. 

Exponential data growth

The World Economic Forum says 181 zettabytes of data is expected to be created, captured, copied and consumed globally in 2025, and Deloitte notes that by this year, the internet alone is projected to hold over 175 zettabytes of data. This occurs against the backdrop of just 68% of the global population being connected. As efforts continue to bridge the digital divide, this number will rise further, with more people gaining access to the internet. 

Adding to the data explosion is the growing use of the Internet of Things (IoT) and generative AI, which rapidly creates new data from existing datasets. Emerging technologies such as satellite-to-phone connectivity and subsidised internet access will further accelerate data generation.

Infrastructure strain and industry shifts

This exponential data growth is a challenge for data centre operators, governments and organisations.

According to JLL Research, global data centre capacity is projected to grow at 15% per year, but this will not be sufficient to meet demand.

Data must be transported, processed, and stored across multiple locations, often passing through cache nodes and backup facilities within distributed network architectures.

However, traditional hyperscale data centres are reaching their limits due to immense power consumption. Several countries, including Germany, the UK, Singapore, and China, have halted new data centre developments due to power grid constraints. In response, some dedicated data centre developers are now conceptualising nuclear reactors designed solely to power individual hyperscale facilities.

The rise of decentralisation and Edge computing

The data management challenge is not limited to storage capacity – latency is also a crucial consideration. 

Low latency is crucial for certain use cases. The 20-millisecond latency between Johannesburg and Cape Town might be acceptable for most applications, but for applications like remote robotic surgery, latencies must be far lower.

As real-time applications — such as self-driving cars, stock trading, gaming and financial transactions — become more reliant on ultra-low latency, the industry is shifting towards decentralised Edge data centres.

While hyperscalers will continue to serve as core aggregation nodes, Edge data centres will become critical for distributed workloads and localised data processing. These smaller, strategically placed data centres will bring processing power closer to the end user, significantly reducing latency and enhancing performance.

Additionally, as data volumes grow, the need for more efficient data transport and storage across multiple locations will become even more essential. The future data centre landscape will be defined by a hybrid model, balancing hyperscale infrastructure for massive storage and Edge computing for speed and efficiency.

Moving toward a digitised SA

In South Africa, the roll-out of Edge data centres for optimal e-government services and full digital inclusion is hampered by a number of factors, however.

These rollouts are largely underpinned by the rollout of digital infrastructure in the form of fibre optic networks and high-speed wireless networks, because these data centres rely on really good connectivity by multiple providers to be able to offer always-on, resilient connectivity. They're driven by other infrastructure investments, industrial developments and corporate expansion to be viable.

Data centre development is extremely capital intensive, so meeting the future demands of smaller towns and rural areas is going to depend on foreign investment. While there is an appetite among foreign investors and the private sector to invest, an often slow industry consolidation and an outdated regulatory environment could hamper progress. South Africa needs to become more investor friendly by addressing challenges such as infrastructure development, investment, and fostering a more collaborative  relationship between government and the private sector.  

To fully capitalise on the digital economy, South Africa needs state of the art data centres and nationwide coverage to deliver the capacity, low latency, and reliability needed to power the growing demands of modern applications and manage fast-expanding data volumes.

Digital Parks Africa is on a mission to be Africa’s premier data centre partner, recognised for our excellence in redundancy, scalability, and innovation. As a 100% African-owned company, we are deeply rooted in the region, understanding its unique challenges and opportunities. We deliver tailored solutions that drive digital transformation and ensure that every business has the opportunity to thrive in a connected, technology-driven world.