Growing demand for cloud services prompts Oracle to set up data center in Africa

U.S giant computer technology corporation, Oracle, has opened a data center in Johannesburg, South Africa. This center is the company’s first infrastructural project in Africa, aimed at providing local cloud services across the continent.

Oracle joins other corporations like Amazon and Microsoft, in the setting up of facilities in the continent.

Cloud regions are places where public cloud resources are located. This allows users to get quicker access, as it does now in Johannesburg.

Africa has an increasing demand for faster computing from banks and telecoms, making the region attractive for big cloud operators. Microsoft first launched data centers in South Africa, then Amazon and Huawei followed suit.

With the South African data center, Oracle now has 37 cloud regions worldwide, with plans of extending to at least 44 regions by the end of 2022 to meet up the pace with computing competitors such as Microsoft, Amazon, and Google.

Although Oracle does not intend to open more cloud centers in Africa this year, the corporation would, however, explore other areas such as West Africa, reports Cherian Varghese, regional managing director for the Middle East and Africa.

With 50 data centers, South Africa is strategic for locating of data centers as the country’s connectivity is provided by a submarine communication cable. It, however, faces infrastructure challenges such as high-power prices and regular power cuts. This means the accrued costs of backup power. Smaller cloud operators are also trying to tap into the market for data localization.

U.S based Digital Realty is buying a majority stake in a Johannesburg-based data center operator for $3.5 billion. Vantage Data Centers has also announced plans to set up a data center in South Africa.