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Rising electricity costs hit African data market

Increases in electricity rates by African power utility companies are raising fears that data-centre operators will soon pass on the higher costs to end users.

Telecom operators have set up data centres in order to serve a need for services in the region, but the hike in electricity tariffs is now threatening the growth of the market. Africa's subscriber base for voice communications is still expanding but the growth curve has began to flatten in the region's more mature markets, including South Africa, forcing operators to compete more aggressively on the provision of data services.

Source: IDG

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