ADVERTISEMENT
  • Africa
  • World
  • Our Shows
    • Entrepreneurship
    • Destination Business
    • 101business TV Show
Business 360 News
  • Home
  • Africa
    • East Africa
    • West Africa
    • South Africa
  • News
    • Feature
  • Economy
    • Maritime
    • Agriculture
      • Agribusiness
    • Energy
      • Electricty
      • Oil
      • Petrol
      • Gas
  • Finance
    • Insurance
    • Tax
    • Real Estate
  • Capital Market
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
    • EV
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Global Economy
    • UK
    • US
    • Russia
    • CHINA
    • Japan
  • Business 360 Weekly
No Result
View All Result
  • Home
  • Africa
    • East Africa
    • West Africa
    • South Africa
  • News
    • Feature
  • Economy
    • Maritime
    • Agriculture
      • Agribusiness
    • Energy
      • Electricty
      • Oil
      • Petrol
      • Gas
  • Finance
    • Insurance
    • Tax
    • Real Estate
  • Capital Market
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
    • EV
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Global Economy
    • UK
    • US
    • Russia
    • CHINA
    • Japan
  • Business 360 Weekly
No Result
View All Result
Business 360 News
No Result
View All Result
Home Tech AI

Africa Holds Just 0.6% of Global Data Centre Capacity as World Bank Warns of AI Divide

Joseph Ologeh by Joseph Ologeh
October 14, 2026
in AI
0

Africa accounts for just 0.6 per cent of global data centre capacity despite representing approximately 18 per cent of the world’s population, highlighting a significant infrastructure gap that could limit the continent’s participation in the global artificial intelligence economy.

The figures were highlighted in the World Bank’s October 2026 Africa Economic Update and examined in a report by Coronation Asset Management.

According to the assessment, artificial intelligence adoption is expanding across Sub-Saharan Africa, but progress remains uneven among countries, businesses and public institutions.

Nigeria, Kenya and South Africa have emerged as major centres of AI-related innovation and investment.

However, unreliable electricity supply, limited internet connectivity and the high cost of digital devices continue to restrict access.

Africa’s AI Infrastructure Gap Widens

The report identified a major imbalance between Africa’s population and its share of global digital infrastructure.

Although the continent accounts for approximately 18 per cent of the world’s population, it holds only 0.6 per cent of global data centre capacity.

Data centres provide computing, storage and networking infrastructure used by digital services.

They are also important to the development and deployment of many AI applications.

Limited infrastructure can increase dependence on computing resources located outside the continent.

It may also create challenges involving operating costs, network performance and access to advanced computing capabilities.

About 900 Million Africans Remain Offline

Digital connectivity remains another major obstacle.

According to the report, approximately 900 million Africans remain offline.

The figure illustrates the scale of the digital access challenge confronting the continent.

Internet connectivity is essential for many AI-enabled services, including digital learning, online business applications and cloud-based tools.

People without reliable internet access may be unable to benefit from these technologies.

The cost of mobile data and internet-enabled devices can create additional barriers.

Consequently, improvements in AI technology alone may not be sufficient to ensure widespread adoption.

Nigeria, Kenya and South Africa Lead Innovation

The report identified Nigeria, Kenya and South Africa as major centres of AI innovation in Sub-Saharan Africa.

These countries account for much of the region’s technology investment, venture capital activity and more advanced applications.

Nigeria’s growing digital economy provides opportunities for AI adoption in financial services, education, agriculture and business operations.

Kenya has also developed a technology ecosystem supporting digital innovation.

South Africa’s established corporate and financial sectors provide additional opportunities for enterprise adoption.

However, the concentration of activity in a small number of countries highlights differences in digital readiness across the region.

Large Companies Lead AI Adoption

The World Bank assessment found that AI adoption among large firms in Nigeria and Kenya stood at approximately 44 per cent.

This compares with 61 per cent among large firms in the United States.

The figures suggest that some African businesses are already incorporating AI into their operations.

However, the report noted that usage remains largely basic.

Adoption does not necessarily mean that companies are developing advanced AI systems or integrating the technology across all business functions.

The scale and sophistication of deployment remain important considerations.

AI Expected to Support Workers

The World Bank expects AI to complement rather than replace many workers in Sub-Saharan Africa in the near term.

This assessment reflects the structure of employment across the region.

A substantial share of the workforce remains engaged in agriculture, informal services and manual occupations.

Consequently, the initial economic benefits of AI may come through improvements in productivity rather than large-scale automation.

Businesses could use AI tools to support administrative tasks, improve access to information and strengthen decision-making.

However, the actual benefits will depend on implementation, training and access to reliable infrastructure.

Africa Produces Limited AI Training Data

The report also identified a significant gap in the representation of African information within global AI development.

Approximately 2 per cent of global AI training data comes from Africa, according to the assessment.

Training data is important because it helps shape the capabilities and performance of AI systems.

Limited representation may affect how effectively some applications respond to African languages, environments and local contexts.

Increasing the availability of high-quality African data could support the development of more locally relevant technologies.

However, such efforts would also require appropriate privacy safeguards, governance and technical capacity.

Electricity Supply Remains a Major Challenge

Reliable electricity is essential for digital infrastructure.

Data centres, telecommunications networks and computing facilities require consistent power to operate.

Unreliable supply can increase operating expenses and discourage investment.

The report identified electricity shortages as one of the major constraints on AI adoption across Sub-Saharan Africa.

Improving energy infrastructure could therefore support both technology development and wider economic productivity.

AI Offers Opportunities for Economic Growth

The World Bank’s assessment suggests that broader AI adoption could help improve productivity across African economies.

Potential applications include agriculture, education, healthcare, financial services and public administration.

However, the scale of the benefits will depend on digital skills, infrastructure investment and the ability of institutions to deploy technology effectively.

For businesses, the challenge will involve moving beyond experimentation towards applications that deliver measurable improvements.

Africa Must Address Digital Inequality

The findings highlight the need for coordinated investment in connectivity, electricity, computing infrastructure and skills development.

Without these improvements, AI adoption could remain concentrated among large companies and digitally connected populations.

Smaller businesses and underserved communities may struggle to participate.

Africa’s long-term opportunity lies in building the infrastructure and capabilities needed to develop and use AI in ways that respond to local economic needs.

The continent’s growing technology ecosystem offers a foundation, but closing the digital divide remains essential to ensuring that AI contributes to inclusive economic development.

Tags: #AfricaTech#ArtificialIntelligence#DigitalInfrastructure
Previous Post

World Bank Projects Nigeria’s Inflation to Fall to 12.2% by 2028 as External Reserves Strengthen

Next Post

World Bank Upgrades Africa’s Growth Forecast to 4.3% as Inflation Threatens Recovery

Joseph Ologeh

Joseph Ologeh

Next Post

World Bank Upgrades Africa’s Growth Forecast to 4.3% as Inflation Threatens Recovery

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest

FMDQ Admits TSL SPV PLC ₦12.00 billion Series 1 Guaranteed Fixed Rate Infrastructure Bond to its Platform

March 11, 2021

NIBSS Downtime Causes Delays in Electronic Transactions, Fintechs Alert Customers

June 7, 2024

Asian Stocks Hit Record High as US Tech Rebound Lifts Market Sentiment

February 10, 2026

BNP Paribas Sells 25% Stake in AG Insurance to Ageas for £1.9bn

December 8, 2025

‘The existence of a production hub in Nigeria will go a long way for the Fashion Industry’. FUNMI RUFAI LADIPO, President Fashion Designers Association of Nigeria.(FADAN)

25

Goldlink’s restructures board

10

Airtel Africa Plc gets admitted to the NSE Main Board

6

Stallion Tank Farm resumes operations

3

Oil Prices Fall as Traders Weigh Strait of Hormuz Risks and Possible US Sanctions Relief

October 15, 2026

Global Stock Selloff Deepens as Chip Rout Hits AI Trade; Treasuries Rally

October 15, 2026

FG, EU and EBRD Sign €14m Deal for Nigeria’s 90,000km Fibre-Optic Network

October 15, 2026

Nigeria Woos Investors With $78.5bn Project Pipeline, Energy and Transport Dominate

October 15, 2026
Business 360 News

Business 360 News is a Business and Financial News Platform with an SMEs drive. Published by 360 Network Limited, and created with the aim of disseminating unbiased business stories to readers within and outside Nigeria, providing in-depth analysis of our stories from a critical perspective against the backdrop of realities, actualities, objectivity and balance.

Follow Us

Browse by Category

  • Africa
  • Agribusiness
  • Agriculture
  • AI
  • Art
  • Arts
  • Aviation
  • Banking
  • Blockchain
  • Business 360 Weekly
  • Business news
  • Business Travels
  • Capital Market
  • CHINA
  • Corporate
  • Cryptocurrency
  • Destination Business
  • East Africa
  • Economy
  • Education
  • Electric Vehicles
  • Electricty
  • Energy
  • Entertainment
  • Entertainment
  • Entrepreneurship
  • EV
  • Fashion
  • Fashion
  • Feature
  • Finance
  • Gas
  • Global Economy
  • Health
  • Hospitality
  • ICT
  • Insurance
  • IoT
  • Japan
  • Lifestyle
  • Luxury
  • Maritime
  • Meetings
  • Mortgage
  • News
  • NGOs
  • Oil
  • Petrol
  • Political Economy
  • politics
  • Real Estate
  • Real Estate
  • SMEs
  • Society
  • Solar Energy
  • South Africa
  • Sports
  • Start-Ups
  • Stocks
  • Success Stories
  • Tax
  • Tech
  • Tourism
  • Transportation
  • UK
  • Uncategorized
  • US
  • West Africa
  • World

Recent News

Oil Prices Fall as Traders Weigh Strait of Hormuz Risks and Possible US Sanctions Relief

October 15, 2026

Global Stock Selloff Deepens as Chip Rout Hits AI Trade; Treasuries Rally

October 15, 2026
  • Africa
  • World
  • Our Shows

© Business 360 News - Business, Finance And SMEs News | Design by Manifest!

No Result
View All Result
  • Home
  • Africa
    • East Africa
    • West Africa
    • South Africa
  • News
    • Feature
  • Economy
    • Maritime
    • Agriculture
      • Agribusiness
    • Energy
      • Electricty
      • Oil
      • Petrol
      • Gas
  • Finance
    • Insurance
    • Tax
    • Real Estate
  • Capital Market
  • Tech
    • ICT
    • Solar Energy
    • Electric Vehicles
    • Blockchain
    • IoT
    • AI
    • EV
  • SMEs
    • Success Stories
    • Start-Ups
    • Entrepreneurship
  • Global Economy
    • UK
    • US
    • Russia
    • CHINA
    • Japan
  • Business 360 Weekly

© Business 360 News - Business, Finance And SMEs News | Design by Manifest!