The United States is actively competing with China for a significant share of Africa's burgeoning data center market, securing billions of dollars in deals through a combination of public-private partnerships and commercial diplomacy. These efforts aim to establish U.S. companies as key players in the continent's digital infrastructure development.
The U.S. administration, under President Donald Trump, has facilitated 37 commercial transactions in Africa since the beginning of his second term, totaling $25.67 billion. This initiative is spearheaded by the State Department's Bureau of African Affairs, which launched its Commercial Diplomacy Strategy in early 2025 to advance a level playing field for U.S. businesses.
In Lesotho, U.S. company Convalt Energy has secured a landmark $6.2 billion deal to construct a data center and a hydropower plant. This project, aided by the U.S. government, is set to increase Lesotho's electricity generation capacity by approximately 1,600%, transforming the nation into a net exporter of power and generating an estimated $2 billion in U.S. energy equipment exports. Hari Achuthan, President & CEO of Convalt Energy, emphasized that American companies can succeed by innovating faster, integrating hardware and software, and focusing on customer needs, rather than competing solely on price.
Another U.S. firm, Cybastion, has secured contracts in West Africa. The U.S. Embassy in Abidjan assisted Cybastion in obtaining a $100 million contract for two data centers and a gas-to-power plant in Gabon, prevailing over Chinese competitor Huawei. More recently, the U.S. Embassy in the Ivory Coast facilitated a $170 million contract for Cybastion, which includes a data center, a government digitalization platform, and a border surveillance system.
Dr. Thierry Wandji, CEO of Cybastion, stated that U.S. companies offer innovation, transparency, and accountability, and possess a unique understanding of the African context. He highlighted that countries across Africa are prioritizing sovereign data centers and digitalization as part of their national development plans.
Assistant Secretary of State for African Affairs, Frank Garcia, noted that while U.S. trade with Africa reached $83.4 billion last year, China's bilateral trade was significantly higher at $348 billion. However, Garcia criticized China's trade practices, suggesting they can trap and coerce African nations, contrasting it with the U.S. approach of partnering for prosperity.
Data centers are crucial for supporting artificial intelligence, cloud computing, and video streaming services, making them central to the global digital economy. The increasing demand for electricity by these centers has led some U.S. states to implement stricter regulations.
Convalt Energy's project in Lesotho, which includes a 1,200MW pumped-storage hydropower facility and a 900MW AI data center, exemplifies the U.S. strategy of aligning with private sector investment and creating sustainable infrastructure platforms. Achuthan noted that the U.S. administration's emphasis on trade and private sector investment, rather than solely grant funding, aligns with their business approach.
The competition for influence and economic opportunities in Africa is intensifying, with the U.S. aiming to provide an alternative to China's extensive infrastructure investments and financial ties, which have led to debt concerns in some African nations.