U.S. Companies Secure Billions in African Data Center Contracts, Outpacing Chinese Competition

American companies have captured a significant share of Africa’s lucrative data center market through coordinated efforts with the Trump administration, marking a notable reversal in a continent long dominated by Chinese investment. The State Department’s Bureau of African Affairs reported 37 completed commercial transactions valued at $25.67 billion since the start of President Donald Trump’s second term, with additional deals still being finalized.

Data centers have become critical infrastructure in the global economy, powering artificial intelligence applications and cloud computing services that support everything from video streaming to enterprise networks. The competition for these projects reflects broader U.S.-China strategic competition across Africa, where trade relationships carry significant geopolitical weight.

In Lesotho, American company Convalt Energy secured a $6.2 billion agreement to construct a 1,200-megawatt pumped-storage hydropower facility paired with a 900-megawatt artificial intelligence data center. The project will increase the nation’s electricity generation capacity by approximately 1,600 percent and is expected to generate roughly $2 billion in U.S. energy equipment exports, according to Assistant Secretary of State for African Affairs Frank Garcia.

Gabon has emerged as another key market, with the U.S. Embassy facilitating $600 million in business for American firms in 2025 alone. This year, embassy officials helped secure a $100 million contract for American company Cybastion to supply two data centers and a gas-to-power plant, notably defeating Chinese competitor Huawei in direct competition.

The disparity in overall trade volumes underscores the challenge facing American companies. U.S. goods traded with Africa totaled $83.4 billion last year, according to the Office of the United States Trade Representative, while Chinese bilateral trade with the continent reached $348 billion during the same period.

Garcia argued that American partnerships offer African nations superior terms compared to Chinese arrangements, which he characterized as exploitative. China has eliminated tariffs on Lesotho’s exports, established direct banking relationships through state-owned institutions, and canceled debt on major infrastructure projects including solar plants and public facilities.

U.S. business leaders attribute their competitive advantage to innovation, reliability and transparency rather than price competition alone. Convalt Energy’s president and CEO Hari Achuthan emphasized that American companies succeed by integrating hardware and software solutions while maintaining focus on customer needs and building sustainable, long-term partnerships.

The State Department launched its Commercial Diplomacy Strategy in early 2025 to support this initiative, with officials working to establish equitable trading conditions for American companies globally. The strategy prioritizes private-sector investment over traditional grant-based development assistance.

Cybastion CEO Dr. Thierry Wandji noted that African nations increasingly prioritize sovereign data centers and government digitalization as components of national development plans. The company recently secured a $170 million contract in Ivory Coast to deliver a data center, government digitalization platform and border surveillance system.