Morocco overtakes South Africa as Africa’s top data center hub

Morocco has officially surpassed South Africa as Africa’s leading data center hub, hosting 23 facilities and positioning itself at the forefront of the continent’s digital transformation, according to a recent report by Global Finance.

The report attributes Morocco’s rapid rise to a combination of strategic investments, government incentives, and regulatory reforms. Since launching its digital roadmap in 2020, spearheaded by the Agency for Digital Development, the country has offered tax breaks and exemptions through its National Charter of Investment, creating a favorable environment for digital infrastructure.

A pivotal factor, the report highlights, is a 2021 law mandating that sensitive data be stored locally. This policy has spurred data repatriation and accelerated the expansion of domestic data centers, reflecting Morocco’s broader push for data sovereignty.

The sector is currently dominated by major telecom operators such as Maroc Telecom and Inwi, along with specialized firms like Medasys and N+One. While large banks often manage their own data facilities, smaller financial institutions typically lease storage capacity.

Regional development incentives have also fueled growth, particularly in Casablanca-Settat and Rabat-Salé-Kénitra, where strong internet connectivity and reliable energy infrastructure make them prime locations for data operations. Notably, American firm Iozera has announced a $500 million data center project in Tetouan, signaling growing interest beyond traditional urban hubs.

“Location is key,” said Doha Ammour of N+ONE Datacenters. “Proximity to business centers, infrastructure, and sustainable energy sources heavily influence investment decisions.”

Morocco’s digital expansion extends beyond data centers. The country is also advancing in fintech, artificial intelligence, and e-government. These efforts are consolidated under the “Digital Morocco 2030” strategy, spotlighted at the 2025 Gitex Africa tech summit in Marrakech, which drew over 1,400 exhibitors and 45,000 participants from more than 130 countries.

The Global Finance report described data as “the new oil,” emphasizing its limitless and self-replicating nature as a key driver of future economic growth.

Data centers — vast complexes that store, process, and secure digital information — are now essential for supporting Morocco’s burgeoning digital economy, helping ensure resilience against cyber threats and enabling scalable cloud services.

With significant infrastructure gains over the past two decades, Morocco has emerged as a critical digital bridge between Africa and Europe. A prior forecast by W. Media predicted that the country’s cloud and data storage sector will attract $50 million in investments by 2028, with an expected annual growth rate of 11.18% between 2023 and 2028.