Vodacom Group is considering artificial intelligence (AI) data centre projects in Kenya and South Africa. Their viability will depend on more than investors: reliable electricity, government cooperation and customers willing to pay for computing capacity will be essential.
Chief executive Shameel Joosub outlined the strategy in November 2026, saying the facilities require substantial investment and specialist expertise. Vodacom has not announced final sites, budgets or construction dates. Kenya and South Africa remain under consideration, not confirmed builds.
AI Computing Raises the Infrastructure Bar
A conventional data centre houses servers that process information for websites, business software and cloud services. AI-ready facilities must also support intensive computing, often using graphics processing units (GPUs) to train or run AI models.
These systems require continuous electricity and advanced cooling. Joosub told Business Day that Vodacom already operates data centres in many markets, but existing facilities were designed for enterprise workloads rather than the largest AI tasks. It also raises the cost of entry.
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Egypt Provides the Partnership Blueprint
Vodacom’s clearest example is in Egypt, where Vodafone Business has partnered with Cassava Technologies and Elsewedy Electric. The arrangements cover two developments: Africa Data Centres Egypt, a large data centre venture, and sovereign AI infrastructure being developed with Cassava.
The data centre project targets 20 megawatts of operational capacity within three years, with plans to scale to 200MW. Its first phase is expected to attract about $200 million in foreign investment; total investment could reach $1 billion at full capacity, according to Vodacom.
The partners contribute different capabilities: Vodafone Business brings cloud expertise, Cassava brings data centre and AI experience, and Elsewedy contributes infrastructure and energy capabilities. Joosub said future joint ventures could combine equity and debt. Vodacom expects to hold stakes in facilities and handle a substantial share of customer sales.
Electricity and Demand Will Determine Success
Local computing capacity could help African businesses access cloud and AI services closer to home. Domestic hosting may also help organisations meet data-control requirements. New facilities could attract technology investment and create demand for specialist workers.
But data centres need dependable power, fibre connectivity, cooling, skilled operators and customers willing to sign contracts. Joosub highlighted government engagement to secure sufficient electricity. Without reliable supply, expensive infrastructure may be difficult to operate consistently.
Nigeria Enters the Wider Investment Race
The plans matter to Nigeria, although Vodacom has not named it as a target. MTN’s 2026 interim results identify Nigeria and South Africa as the first markets for its AI-enabled data centre strategy, supported by a UAE-backed investment platform. The parallel plans show telecom operators increasingly view computing infrastructure as a growth opportunity.
Back Story: Africa’s Limited Data Centre Capacity
Vodacom’s Egyptian announcement says Africa accounts for less than 1% of global data centre capacity. This estimate illustrates the infrastructure gap, although it is a figure cited by the company.
More facilities alone will not guarantee affordable services or broad economic benefits. Investors need locations with reliable energy, strong connectivity and enough customer demand to justify construction and operating costs.
For now, Vodacom’s Kenya and South Africa projects remain exploratory. Egypt offers a partnership model, but its success elsewhere will depend on local energy conditions and long-term customer demand.
