Google, Oracle ramp up investments in Africa's growing cloud market
TLDR
- Google Cloud launched its first cloud region in Africa, located in Johannesburg, South Africa. This move aims to provide essential cloud services to customers across the continent, including computing, storage, networking, and security.
- Oracle plans to launch a public cloud region in Nairobi, Kenya, marking its second facility in Africa. This expansion comes in response to the increasing demand for Oracle Cloud Infrastructure (OCI) services throughout the continent.
- The competition between major cloud providers, including Google Cloud, Oracle, Microsoft Azure, and Amazon Web Services, highlights Africa's growing importance as a key market for cloud services. This has led to significant investments from leading tech companies in establishing their presence in the region.
On February 2nd, Google Cloud unveiled its inaugural cloud region in Africa situated in Johannesburg, South Africa. This strategic move aims to provide customers across the continent with access to Google Cloud's essential services, including computing, storage, networking, and security.
Oracle has also disclosed its plans to launch a public cloud region in Nairobi, Kenya, in response to the increasing demand for Oracle Cloud Infrastructure (OCI) services throughout Africa. This forthcoming region in Nairobi will mark Oracle's second cloud facility on the continent, following the inauguration of its first region in Johannesburg, South Africa, in January 2022.
The expansion efforts by both Oracle and Google underscore their competition with other major cloud providers, such as Microsoft Azure and Amazon Web Services, all of whom have established their cloud regions in South Africa in recent years. This competition highlights the growing importance of Africa as a key market for cloud services, prompting significant investments from leading tech companies.
Key Takeaways
Cloud-native startups in Africa are enticing major tech companies to increase their investments in cloud infrastructure, driven by the rising demand for cloud services that comply with data protection regulations. McKinsey projects a global cloud market value of $3 trillion by 2025, with a significant portion of $797 billion allocated to Africa and Europe. Concurrently, the International Finance Corporation (IFC) forecasts the continent's cloud economy to reach $180 billion by the same period, representing 5.2% of its GDP. McKinsey highlights the influence of data residency laws prevalent in African countries such as Algeria, Gabon, Niger, and Morocco. These regulations compel tech firms to establish their presence within the continent to comply with local data storage requirements. Consequently, major tech players are increasingly establishing cloud facilities in Africa to cater to the growing demand for cloud-native services while adhering to regional data protection laws.
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