The competitive landscape for Nigeria’s data centre market, valued at approximately $287 million (N430 billion), is intensifying as major telecommunications companies and specialised infrastructure firms commit significant capital to the sector.
This fierce battle for dominance in Nigeria’s critical digital infrastructure space underscores the country’s rapidly accelerating digital transformation and its pivotal role as a future technological hub for the West African region.
The burgeoning sector is attracting massive investments from a formidable mix of key players, both local and international, all vying for a piece of a market that is projected to experience rapid growth towards the $1 billion mark in the coming years, transforming the nation’s digital backbone and enabling its burgeoning digital economy.
According to a report by Research and Markets, Nigeria’s data centre market was valued at $287 million as of 2023, a figure that only hints at the immense potential seen by investors. The latest and highly significant move came from Airtel Africa, which has announced a substantial investment of $120 million to establish its first data centre in the country.
This project is a strategic pivot for the telecommunications giant, extending its portfolio beyond connectivity into the high-growth realm of data housing and cloud services, and is scheduled to commence operations in the coming year.
This development places Airtel in direct competition with other key players who have already established a strong presence, fundamentally altering the dynamics of the market.
The market leader, MTN, has invested heavily through its subsidiary, MTN Nigeria, in data centre services, leveraging its vast customer base and network infrastructure to capture a significant share of the enterprise and wholesale data market, although a specific public figure for its total investment in Nigeria is not consolidated.
Beyond the telecoms heavyweights, a significant portion of the market’s colossal capital influx comes from specialised infrastructure firms with a sharp focus on building world-class facilities. Rack Centre, for instance, is progressing with a major $250 million expansion of its Lagos data centre, a key facility in the region known for its carrier-neutral status and high-tier design, aiming to solidify its position as a leading provider.
On an even larger and more ambitious scale, Digital Realty, a prominent international data centre operator, is investing in local ventures through a joint venture with Pembani Remgro Infrastructure Managers, with plans to deploy over $500 million into data centre development across Africa, with Nigeria being a primary and strategic focus for this expansive capital deployment.
