The warning comes as the MEA region’s AI market is projected to reach $46.71 billion in 2026. It could grow more than fivefold by 2032
The UN report, released April 6, highlights a stark reality. Africa hosts less than 1 percent of the world’s data centers.
This deficit forces governments and businesses to rely on costly foreign cloud infrastructure. It also limits the development of locally relevant AI models and undermines the continent’s data sovereignty.
To close the gap, the report urges governments to expand strategic borrowing, increase tax revenues, and channel pension and sovereign wealth funds into data center construction and electricity grids. It also recommends aligning AI investment with the African Continental Free Trade Area, which could help the continent pivot from raw commodity exports to high-value manufacturing, including batteries, semiconductors, and processors.
The African Development Bank and UNDP have jointly launched the AI 10 Billion Initiative, a fund targeting the creation of 40 million jobs on the continent by 2035. The African Union’s Continental Internet Exchange is also working to ensure data generated in Africa stays in Africa, protecting against what officials call ‘digital colonialism.’
Despite the momentum, a talent crisis remains the most immediate obstacle. Around 50 percent of organizations across the region cite a shortage of specialized AI engineers as their top barrier to scaling. Egypt’s youth technology academy, which aims to produce 750,000 AI-trained graduates annually, may offer a model other African governments will soon rush to replicate.
