Africa’s ambitions to become a major player in the global artificial intelligence economy could be constrained by persistent power shortages and weak infrastructure capacity, a senior Schneider Electric executive has warned.
The warning comes as African governments and private investors increase focus on digital infrastructure, even as power shortages and grid instability continue to challenge long-term technology expansion plans across the continent.
Speaking at the IDC CIO Summit 2026 in Sandton, Johannesburg, Vice President for Secure Power, SSA, at Schneider Electric, Steven Santini, said global technology firms are increasingly positioning Africa as an emerging frontier for AI-driven investment but warned that infrastructure gaps could slow the pace of adoption if not urgently addressed.
“The question becomes: is Africa ready? Global AI players increasingly view Africa as the next frontier, the new gold rush,” Santini said in a statement, pointing to rising data centre investments across markets such as Nigeria, Kenya and South Africa.
However, he stressed that energy availability remains the defining constraint for the expansion of AI infrastructure, particularly for high-density data centres that require significant and consistent power supply.
“Power remains the number one challenge for AI, particularly AI data centres,” he said, adding that some projects in other regions already require electricity loads comparable to entire cities.
Santini cautioned against an overemphasis on large hyperscale facilities, arguing that Africa’s AI development will depend just as much on smaller, distributed computing environments that can operate within existing infrastructure constraints.
He said AI applications are increasingly being deployed through modular systems, including containerised data centres, prefabricated units and compact server clusters embedded within industrial sites.
“When people hear ‘AI’, they often picture massive hyperscale data centres. But AI exists in many different forms,” he said, noting that smaller deployments could be more practical for African industries such as mining, agriculture and financial services.
According to him, these distributed systems allow organisations to leverage existing cooling and power infrastructure while reducing the complexity and cost of deployment.
Beyond electricity supply, Santini said connectivity remains a critical factor in determining whether AI systems can function effectively.
“A data centre without reliable network infrastructure is effectively just an expensive paperweight,” he said, emphasising that data flow is essential to extracting value from AI investments.
He also highlighted the growing importance of software-driven energy management systems in improving efficiency across constrained power environments, particularly in Africa, where energy supply challenges remain widespread.
“We live in a world where power is constrained, and nowhere is that reality felt more strongly than in Africa,” he said.
Santini argued that Africa’s AI success will depend not only on infrastructure investment but also on how effectively organisations align technology deployment with business objectives.
He said companies must first define clear operational outcomes before selecting appropriate combinations of computing, storage, cooling and networking systems.
“AI in Africa is not a future concept; it is already happening,” he said. “But success will depend on defining the right operational outcomes first and then aligning the appropriate technologies around those goals.”
Schneider Electric, he added, positions itself as an energy technology partner supporting organisations in building more efficient and sustainable digital infrastructure.
