Morocco Targets 2 GW Data Center Capacity with Major Investments from Iozera and Naver
Morocco is set to enhance its data center capacity to nearly 2 gigawatts through significant investments from Iozera and Naver, aiming to establish itself as a major hub for data centers in Africa. Key projects include Iozera's $500 million investment in a 386 MW facility and Naver's 500 MW project, both in Tetouan. However, challenges such as limited domestic demand for cloud services and infrastructure readiness may hinder the realization of these ambitious plans.
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Morocco aims to become a major data center hub, with private operators planning projects that could raise total installed capacity to nearly 2 gigawatts, surpassing Africa's current data center footprint of under 500 megawatts. Key projects include Texas-based Iozera's $500 million investment in a 386 MW data center in Tetouan in 2024, and South Korea's Naver unveiling a 500 MW project at the same site in partnership with Nvidia in 2025.
However, Morocco's limited domestic demand for cloud and AI services, along with ongoing electricity production and water availability constraints, pose challenges. Data centers focused on AI consume significantly more electricity than traditional cloud facilities, and infrastructure readiness may not meet necessary levels before 2035. Consequently, delays or reductions in megaprojects may occur, with analysts cautioning that power and cooling challenges could limit the realistic delivery of announced capacities.
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