Mauritius stands uniquely positioned as a stable, connected gateway bridging Africa and Asia, offering a compelling environment for sustainable and strategic investment in the rapidly expanding global data centre industry.
This whitepaper presents an extensive analysis of the data centre industry globally and specifically the potential of Mauritius as a strategic hub for data centre investments. It highlights the explosive growth of the global data centre market, driven by increasing demand for cloud computing, artificial intelligence (AI), and digital services. This sector, with major players like Amazon, Microsoft, Google, and Equinix, is projected to see significant growth, reaching approximately USD 584 billion by 2032.
Geographically, data centres are primarily concentrated in North America, Europe, and Asia-Pacific, but new hubs are emerging in Africa and the Middle East due to saturation in traditional markets, energy costs, and regulatory complexities. Mauritius is strategically positioned between Africa and Asia, boasting political stability, robust digital infrastructure, and improving connectivity through multiple submarine cable systems. The nation’s advantages include reliable power supply, competitive energy costs, and progressive adoption of renewable energy—critical factors for sustainability-focused operators.
Mauritius offers a stable and transparent regulatory environment aligned closely with international standards such as the EU’s GDPR, which enhances its attractiveness to multinational operators requiring stringent data protection and compliance frameworks. Additionally, Mauritius’s pro-business policies, including low corporate tax rates, accelerated depreciation for ICT investments, absence of capital gains tax, and efficient capital repatriation mechanisms, make it financially appealing for long-term digital infrastructure investment.
From an infrastructure perspective, Mauritius demonstrates readiness through established facilities such as the Tier IV-certified Bhumishq and Rose Belle data centres, alongside modern telecom infrastructure with nationwide broadband and evolving 5G capabilities. The government actively supports this sector through strategic planning, targeted investment incentives, and streamlined regulatory approvals managed by the Economic Development Board (EDB).
Economically, Mauritius provides a relatively stable macroeconomic environment characterized by controlled inflation, currency stability, and robust legal frameworks supporting commercial arbitration and intellectual property rights. These elements contribute to predictable cost structures, moderate operational costs, and attractive risk-adjusted yields for data centre projects. Investments typically project internal rates of return (IRRs) in the range of 13%-18%, supported by moderate competition, strategic geographic location, and increasing regional demand for localized data hosting.
Comparatively, Mauritius positions itself effectively against regional alternatives like South Africa, Kenya, Nigeria, and the UAE, offering superior political stability, power reliability, currency convertibility, and regulatory clarity. These competitive advantages are critical for international data centre operators and investors prioritizing operational efficiency, compliance, and risk management.
The economic multiplier effects of investing in data centres are substantial, including direct and indirect job creation, enhanced digital ecosystem growth (cloud services, fintech, and cybersecurity), improved export competitiveness, and national digital resilience. Such infrastructure acts as a catalyst for broader economic transformation, underpinning Mauritius’s transition towards a high-value, knowledge-based economy.
In conclusion, Mauritius presents a compelling and strategically balanced opportunity for data centre investment, particularly appealing to operators and investors seeking a stable, compliant, and efficient jurisdiction for digital infrastructure serving regional markets. The nation is poised to capitalize significantly on the growing global data centre industry, positioning itself as a leading digital hub bridging Africa and Asia.
