Shared digital infrastructure is emerging as the smartest, fastest path to closing the gap. Image: Getty Images/iStockphoto.
This article is part of:Centre for the New Economy and Society
- Africa is home to 18% of the world’s population, but holds less than 1% of global data centre capacity.
- Shared digital infrastructure enables developing countries to fully access the global economy.
- Closing the digital gap requires collaborative action, clean energy and the right policy environment.
In Uganda’s Buheesi village, a school that once lacked electricity or internet now downloads digital textbooks and files reports in real time. The transformation came when a pilot programme combined rural electrification with fibre deployment, bringing both power and connectivity to the heart of the community.
Across much of the world, digital infrastructure isn’t just about streaming videos or accessing cloud storage. It’s about agency, access and advancement. Africa is home to 18% of the world’s population but holds less than 1% of global data centre capacity. That’s not just a stat – it’s a warning.
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As AI, fintech and digital public services reshape the global economy, nations without compute power will be nations without control. In this new era, “compute is the new sovereignty”. And shared digital infrastructure (SDI), regional collaboration across cloud, data and power, is emerging as the smartest, fastest path to closing the gap.
Closing the AI divide
It’s no longer enough to be digitally connected. Without local data centres, hyperscale capabilities or sovereign cloud services, emerging economies will be forced to outsource intelligence, not just infrastructure.
The true divide will be between countries with the infrastructure to train and run AI models on their terms; and those dependent on platforms they don’t control, in jurisdictions they don’t influence.
The good news? There’s a path forward. And it’s already being tested.
What are the benefits of shared digital infrastructure?
Rather than each country shouldering the burden alone, SDI invites cooperation and collaboration. Think of it as the railway system of the AI era, built once, used by many, governed collectively.
Forms of SDI include:
- Regional data centres: Joint investments that reduce cost and boost redundancy.
- Digital commons models: Community or region-governed infrastructure cooperatives.
- Sustainable power alliances: Shared renewable energy grids powering cross-border facilities.
- Public-private partnerships: Where governments de-risk investment and co-own strategic assets.
What are the energy demands of AI?
The demand for resources, such as electricity and water, is insatiable in the field of AI infrastructure. It is estimated that global data centres will consume over 1,000 terawatt-hours (TWh) by 2026, almost twice the amount in 2022. As Africa, South Asia and Southeast Asia experience exponential population growth in the coming years, it will be crucial to strategize and support this growth.
This becomes even more critical for emerging economies that are already struggling with frequent power outages – they cannot simply add hyperscalers without reevaluating their energy strategy. Fortunately, SDI provides a solution to make the energy support feasible by focusing on renewables:
- Co-funded renewables like hydro (East Africa), geothermal (Indonesia and Kenya) and solar (Morocco).
- Battery storage and microgrids to strengthen local resilience.
- Regional energy trading agreements to allocate power to priority assets.
What should happen next?
Emerging markets don’t have to start from scratch. Pilots like Uganda’s Buheesi project, which combined electrification with fibre rollout, have shown the power of infrastructure integration at the local level. Teachers accessed digital resources, clinics filed reports in real time, and civic operations became more efficient. But these wins were local and vertically integrated. The next leap is horizontal, cross-border infrastructure, shared data centres, pooled compute and regional cloud platforms. SDI builds on these pilots but adds scale, sovereignty and sustainability.
1. Build the right policy environment
Governments must lead with policies that unlock co-operation, while safeguarding data and market fairness:
- Harmonized data policies: Regional frameworks for data governance ensure smooth cross-border data flows and minimize regulatory fragmentation.
- Investment incentives: Tax credits, concessional capital and reduced tariffs can attract private capital to SDI projects.
- Infrastructure-as-a-Service (IaaS) initiatives: Public cloud platforms offering subsidized services to local innovators can jumpstart digital entrepreneurship.
- Cybersecurity and data protection: Regional standards and pooled security investments are essential to protect sovereign data and maintain public trust.
2. Create a tactical playbook for stakeholders
- Policy-makers: Support regional data infrastructure projects, and streamline licensing for shared data centres and energy operators.
- DFIs and investors: Use blended finance to de-risk investment, and back digital commons and cross-border energy-data platforms.
- Infrastructure operators and hyperscalers: Embrace neutral-host facilities and local co-ownership, and connect to regional IXPs and energy nodes.
Compute power is the key to sovereignty
The AI revolution demands immediate action. Emerging economies can leapfrog the Global North's tech model through shared digital infrastructure, clean energy and collaboration. In the 21st century, sovereignty is built on bandwidth and compute, not just borders. Prioritizing renewables like geothermal and hydro supports net-zero goals and digital economic growth. For many, digital infrastructure means empowerment, not just entertainment.
The stark global data centre gap, exemplified by Africa's low capacity – despite its population – is a warning. As AI and digital services reshape the economy, compute is key to national sovereignty. SDI offers a vital path to bridge this gap. Developing nations can bypass traditional tech development with shared, sustainable and collaborative approaches, recognizing that future sovereignty hinges on digital capabilities.
