As Africa and Middle East deepens internet penetration, there are predictions that social media usage, and smart initiatives in those regions will continue to drive the market over the next few years.
Experts have also analysed Nigeria Data Center Market, investment and Growth Opportunities between 2021-2026
In their estimation, the Nigeria data center market is expected to reach USD 218 million in 2026, growing at a Compound Annual Growth Rate, CAGR of 17 per cent during the period 2020-2026.
Investments in the Nigerian data center market are majorly driven by factors such as digitalization of advanced technology, the presence of major operators, internet penetration, and government initiatives, according to Arizton Advisory and Intelligence.
Nigeria hosts 11 existing and will witness the deployment of 9 upcoming facilities spread across 2 cities, including Lagos and Abuja.
According to report obtained by Oriental News Nigeria, the outbreak of the COVID-19 pandemic has been a major rapid growth enabler for the cloud market growth in Nigeria, with several enterprises migrating their workload to the cloud platform.
The report published by PRNewswire, says that the shift of industry sectors such as BFSI, education, retail, manufacturing, and others toward modern technologies such as cloud and big data is likely to aid the growth of the market during the forecast period.
In December 2020, Nigeria launched its “Solar Power Naija” project, focusing on 5 million solar connections by way of solar home installations as well as mini grids.
With improved digital infrastructure and connectivity, an expected increase in colocation activities from cloud service providers is likely to boost the development of local data centers, significantly boosting the colocation market in Nigeria.
By 2025, the government plans to increase the supply share of renewable electricity to 10 per cent of the overall electricity generated in Nigeria.
Africa is an emerging data center market, and it witnessed around 15 data center investments in 2020. The growth in the adoption of IoT and big data analytics services will result in the rapid acceleration of data center development in the Africa data center market.
The market is evolving, and investments are expected to rise significantly with contributions from local and global data center operators. The Middle Eastern region witnessed investments from telecommunication service providers as well as global colocation operators. A major advantage in the Middle Eastern & Africa market is the low power cost.
Observing these rapid and drastic changes in demand and supply patterns encouraged the industry analysts at Arizton to publish exhaustive and data-driven insights on these current trends in the industry. Arizton has a dedicated vertical that focuses on data center knowledge base across geographies.