Yemisi Izuora
Nigeria’s Data Center Market has been projected to reach $646 million by 2029, rising at Compound Annual Growth Rate (CAGR) of 17.14 per cent.
The Market was previously in 2023 valued at $250 million.
The rise is majorly supported by Federal Government’s consistent push toward sustainability and promotion of clean energy technologies for sustainable start-ups and small and medium enterprises (SMEs).
This report analyses the Nigeria data center market share and elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards.
It discusses market sizing and investment estimation for different segments.
Nigeria’s information and communications technology (ICT) sector is experiencing robust expansion, fueled by the financial services, oil and gas, and fintech industries.
The roll-out of 5G and advances in cloud computing infrastructure open new investment prospects for data centers.
Through investments, major hyperscalers steadily strengthen their hold in the Nigeria data center market.
For instance, in December 2023, Amazon Web Services (AWS) announced its partnership with GTBANK and Datamellon to increase quality and innovation in digital service in Nigeria.
Nigeria has around 14 operational special economic zones (SEZs) that offer foreign companies tax holidays on all taxes, including federal, state, and local, duty-free importation, and 100 per cent repatriation of capital and profits.
This move addresses the country’s environmental challenges by adopting the Global Clean Technology Innovation Program (GCIP).
Rack Centre, Equinix (MainOne), Digital Realty (Medallion Communications), 21st Century Technology, Galaxy Backbone, and Africa Data Centres are colocation operators currently developing or operating data centers in the Nigeria data center market.
In 2023, the Nigerian industry grew in data center investments, accounting for over 27 per cent of Africa’s total number of projects.