120
Number of cloud repatriation cases
South African companies returning from cloud services to on-premises solutions in 2026
2.8
Total cloud spending (USD billion)
Annual cloud infrastructure expenditure in South Africa for 2026
150,000
Average cloud service cost per enterprise (USD)
Cost per enterprise for cloud services in South Africa in 2026
15%
Percentage of companies implementing cloud repatriation
South African firms shifting back to local infrastructure in 2026
45
Digital infrastructure investment (ZAR billion)
Investments in digital infrastructure across South Africa in 2026
In 2026, South Africa has seen a notable increase in cloud repatriation, with 120 companies reverting to local infrastructure. This shift is driven by concerns over data sovereignty, cost management, and latency issues. Despite growing cloud adoption, some organizations find that maintaining in-house systems offers better control and compliance with local regulations, influencing this trend.
Overall, cloud spending continues to grow in South Africa, reaching nearly $2.8 billion USD. The digital infrastructure investments reflect a focus on strengthening local data centers and improving connectivity. While cloud services remain vital for digital transformation, the repatriation trend indicates a strategic reevaluation by businesses balancing cloud benefits with local needs.
Frequently Asked Questions
What are the main reasons for cloud repatriation in South Africa?
The primary reasons include data sovereignty concerns, latency issues, and cost management. Companies prefer local infrastructure for better control and compliance.
How is digital infrastructure evolving in South Africa in 2026?
Investments exceeding ZAR 45 billion are enhancing local data centers and connectivity, supporting both cloud adoption and repatriation efforts.
Disclaimer: All statistics presented are 2026 estimates and projections based on industry trend analysis, historical data, and publicly available research. Individual data points may vary from actual figures.