Emerging markets news: Morocco’s bet on digital and green energy assessed
Morocco's geographical position as a bridge between Europe and Africa may allow it to build unique modern and mutually-beneficial partnerships.
TLDR: Morocco is establishing itself as North Africa's centre for digital and renewable energy. Two forces are merging:
Green transition: Rapidly expanding solar, wind, and hydrogen projects to meet domestic and European demand.
Digital pivot: Investment into data centres, submarine cables, and digital services are making Morocco the connectivity bridge between Africa and Europe.
In the near term, Morocco's stability and infrastructure advantage gives it momentum. In the medium term, success will depend on whether it can incorporate regional partners and elicit sustained buy-in from Europe.
What’s at stake?
For Morocco, it's not just about energy exports or data services. The combined effort of both renewable energy and digital infrastructure, the emphasis will be on safeguarding Morocco's future economy, while diversifying away from a reliance on agriculture and traditional manufacturing. However, it also is about safeguarding political stability through job creation.
European capitals are viewing Morocco as a stable partner within an increasingly unstable region. As EU countries desperately search for ways to lessen their reliance on Russian gas, and meet the aggressive climate targets set by their constituents, Morocco is uniquely situated within Europe’s energy security. With an abundance of renewable resources and its geographic proximity to Iberia, Morocco's vast potential in helping solve Europe’s energy issues is immense.
During this time, however, the significant investment in data connectivity, including new submarine internet cables, newly built data centres in Casablanca and Rabat, and partnerships with major tech providers means that Morocco is vying for its role in Africa’s digital economy. This matters for Europe too, with the future of controlling data and digital standards between Africa and Europe likely to become a strategic issue for the next decade.
The background
Morocco has long positioned itself as a stable entry point between Europe and Africa. Now Morocco has recast itself around two pillars: renewables and digital.
Renewables: The Noor Ouarzazate Solar Complex is already one of the largest in the world. Wind farms on the Atlantic coast from Tarfaya to Tangier are scaling up. The green hydrogen sector has recently become the flagship, with Rabat signing MoUs with German, British and Gulf investors to build electrolysis and export corridors. Morocco is aiming to fulfil 4% of Europe’s hydrogen demand by 2030.
Digital: An assortment of submarine cables connecting Morocco to Europe and West Africa (e.g. for the new EllaLink and Medusa projects) are positioning the country to become a digital crossroad. Morocco is developing some of Africa’s largest data centres, including a 500 MW renewable-powered facility near Dakhla, with supporting government policies to improve fibre connectivity, as well as fintech and e-commerce development.
The government’s overarching strategy — “Morocco Digital 2030” — brings these two corners together, along with cybersecurity, AI and e-governance alongside rollout of renewables. Each leg is backed by political stability and substantial state interest through agencies such as MASEN (Moroccan Agency for Sustainable Energy) and the Digital Development Agency.
Comment: a partner Europe cannot ignore
For European states, Morocco's course offers both opportunities and risks. Morocco is a reliable partner when many of its neighbours face varying degrees of instability (Libya, Algeria, the Sahel) and are not able to cooperate as easily. Morocco is also physically close, politically close to Western institutions, and has a proven track record of developing massive infrastructure projects.
On the other hand, dependence on Morocco brings exposure. European industries will increasingly rely on Moroccan H2, solar electricity, and digital services — particularly in Spain, Portugal, Germany and France. Should Morocco face any internal challenges (youth unemployment, water limited by drought for green hydrogen production, domestic protests over cost of living), this may create shocks to European supply chains.
Western investors are already wary of governmental bottlenecks and slow regulatory reform processes that Morocco exhibits. While the state can execute megaprojects, questions remain about the positive spillovers for smaller enterprises and rural areas, or whether wealth will be concentrated in urban areas such as Casablanca and Tangier.
Projections for the near-medium term future:
In the short-term Morocco will certainly bolster its position as North Africa’s renewable leader, with increasing solar and wind supply and at least one hydrogen export pilot to Europe. It will also build on its digital infrastructure, with new submarine cables and data centres, attracting investment from European and Gulf investors, and its European partners will increasingly view Morocco as a secure secondary supplier of green energy.
In the medium-term, there is the realistic possibility that Morocco could become the leading external hydrogen supplier to Europe if German-backed projects become fully operational, and its digital role may evolve into a continental data hub between Africa and Europe. However, risks still exist for Morocco; rising domestic discontent over water use and land allocations, competition from regional rivals, and uncertainty on global hydrogen demand. For Western states, Morocco’s path will tie European utilities and industries more closely to Rabat, making Morocco an indispensable yet strategically sensitive partner.
Significant solar and wind projects are in development or operational in Boujdour, Dakhla, and Laayoune - regions with some of North Africa's highest renewable resources potential. These projects contribute significantly to Morocco’s national green energy targets, supplying power for domestic needs and supporting the country’s ambitions for future hydrogen exports and electricity links with Europe. However, the international status of the territory within which these projects are found is disputed, and some agreements related to the area have faced legal scrutiny and challenges in European courts, such as an annulment of an EU trade deal in October 2024. Rabat views these investments as part of its broader national energy strategy and refers to these areas as the “southern provinces,” whereas the United Nations continues to list Western Sahara as a non-self-governing territory.
With Kenya, the UK, Ghana and Portugal swinging behind Morocco's proposal to resolve the situation in the past few months, there are signs that momentum is shifting in Rabat's favour. Nevertheless, multilateral backing from the European Union, African Union or United Nations remains elusive.
Conclusion
There is no guarantee of Morocco’s transformation, but the path is clear: green energy and digital infrastructure are redefining its future role in the region. Where Morocco was once identified primarily as a tourism destination or manufacturing base, it is now building leverage as a renewable power supplier and a connector for digital networks. For Europe, Morocco is no longer just a neighbour — it is quickly becoming a partner in the race for a sustainable and secure future.
- This report is compiled by Eigenrac exclusively for Global South World. Eigenrac is a Dubai-based boutique consultancy specialising in security risk management services, with a global presence and deep understanding of complex business risk environments. Eigenrac acts as a trusted enabler for clients operating in high-risk or demanding settings.
