Oracle’s African Expansion Continues: Kenya Emerges as Key Site for Next Cloud Infrastructure Hub

Oracle, a global technology leader, has unveiled plans to establish a public cloud region in Nairobi, Kenya, marking a significant stride in its continent-wide cloud infrastructure expansion. This announcement follows the inauguration of Oracle’s initial cloud region in Africa, situated in Johannesburg, South Africa, launched in January 2022.

The decision to designate Kenya as a data center site aligns with Oracle’s commitment to Africa and aims to contribute to Kenya’s digital transformation initiatives. This initiative seeks to serve diverse sectors, including government, public institutions, universities, enterprises, and startups, fostering digital innovation.

During a meeting in Nairobi, an Oracle delegation, led by Scott Twaddle, Senior Vice-President Oracle Cloud Infrastructure Product and Industries, engaged with top government officials, including President William Ruto.

Mr. Eliud Owalo, Cabinet Secretary of the Ministry of Information, Communications, and the Digital Economy, emphasised that Oracle’s public cloud region in Nairobi would play a pivotal role in Kenya’s broader Bottom-up Economic Transformation Agenda.

Discussions during the meeting explored potential collaboration areas, emphasizing digital training, cybersecurity, information sharing, and Artificial Intelligence. The move underscores Oracle’s confidence in Kenya’s economic prospects, infrastructure, and skilled workforce.

Oracle highlighted its intent to leverage Kenya’s renewable energy and digital infrastructure, including submarine and national connectivity. The forthcoming public cloud region in Nairobi reflects Oracle’s positive view of Kenya’s business environment and supports the country’s economic goals.

With the establishment of the second cloud region, Oracle aims to provide over 100 hyperscale cloud services, contributing to the continent’s economic growth. Scott Twaddle expressed enthusiasm for Oracle’s substantial investment in Kenya, citing the upcoming public cloud region as a testament to Oracle’s commitment to advancing Africa’s digital future.

Growing Market for Data Localisation

The surge in data centres in Africa reflects a shift toward data localisation. Over the past five years, major economies such as South Africa, Nigeria, Kenya, Egypt, and Morocco have witnessed increased cloud-based computing, attracting significant capital investment.

Local data centres enable enforcement of data-related laws based on physical location, reduce data lags, and offer cost advantages over international cloud services. The expansion of data centres in Africa aligns with the region’s pursuit of harnessing artificial intelligence.

Several global players, including Digital Realty and Vantage Data Centres, are making substantial investments in African data centre operations. These initiatives reflect the potential of the fast-expanding market for data localisation and cloud-based services across the continent.

Major American tech companies, such as Google, Microsoft, and Amazon, are actively in Africa’s cloud market. Google recently launched its first African Cloud region in South Africa, while Microsoft continues collaboration with the Kenyan government for digitalisation efforts.

As Africa witnesses an influx of global tech giants, the establishment of local cloud regions signals a positive trend. With the continent attracting substantial capital investment, the focus on data localisation, legal compliance, and cost-effective cloud services is expected to drive further developments in the region.