Nigeria Data Center Market - Investment Analysis & Growth Opportunities 2025-2030

NIGERIA DATA CENTER MARKET SIZE

The Nigeria data center market size was valued at USD 278 million in 2024 and is expected to reach USD 671.0 million by 2030, growing at a CAGR of 15.82% during the forecast period. Nigeria is among the emerging data center destinations in the African region. The growing need for cloud services, digital transformation initiatives, and the workloads powered by Artificial Intelligence (AI) are contributing to the Nigeria data center market's potential to grow into a significant hub.

In 2024, Nigeria contributed around 9.90% of the overall data center investments in the African region. The Nigeria data center market has the presence of several regional and global data center operators, such as Africa Data Centres, Open Access Data Centres, Equinix (MainOne), Airtel Africa, 21st Century Technologies, Digital Realty, and Rack Centre.

According to Turner & Townsend’s Data Center Cost Index for 2024, the construction cost of data centers in Nigeria is approximately $12.00 per watt. The costs are expected to rise year-over-year due to several factors, including supply chain issues, inflation, and interest rates. Furthermore, Lagos, considered as the primary data center hub in Nigeria, as it is experiencing a surge in data centers, is aiming to expand cloud service providers in the African region. The reliance on digital infrastructure is growing, attracting cloud service providers from the United States.

KEY HIGHLIGHTS

1. As of December 2024, the total core and shell power capacity of third-party data centers in Nigeria was approximately 65.8 MW. Additionally, around 327.8 MW is currently under construction or in the planned stages. Once all these data centers become operational within the next 4-5 years, the total power capacity is expected to increase fivefold.
2. The government is significantly contributing to the advancement of digital infrastructure throughout the nation. One of the initiatives is Nigeria's National Digital Economy Policy and Strategy (NDEPS 2020-2030), which aims to enhance the digital landscape of the country.
3. There has been a considerable shift from on-premises data centers to cloud and colocation data centers in Nigeria, which has been further accelerated over the last two years, owing to increased digitalization. Nigerian enterprises depend on managed service offerings than on standalone colocation services.
4. In the coming two to three years, significant investments in data centers are anticipated in Nigeria, driven by the entry of multiple operators in the Nigeria data center market. It is estimated that the total investment in this sector can cross the USD 2.94 billion mark from 2025 to 2030.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size available in the investment, area, power capacity, and the Nigeria colocation market revenue.
2. An assessment of the data center investment in Nigeria by colocation, hyperscale, and enterprise operators.
3. Data center investments in the area (square feet) and power capacity (MW) across cities in the country.
4. A detailed study of the existing Nigeria data center market landscape, an in-depth market analysis, and insightful predictions about the Nigeria data center market size during the forecast period.
5. Snapshot of existing and upcoming third-party data center facilities in Nigeria
6. Facilities Covered (Existing): 16
7. Facilities Identified (Upcoming): 17
8. Coverage: 2 Cities
9. Existing vs. Upcoming (Data Center Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data center colocation market in Nigeria
12. Colocation Market Revenue & Forecast (2021-2030)
13. Retail Colocation Pricing
14. The Nigeria data center landscape market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
15. A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
16. Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
17. A transparent research methodology and the analysis of the demand and supply aspects of the market.

NIGERIA DATA CENTER MARKET VENDOR LANDSCAPE

1. Some of the leading colocation operators in the Nigeria data center market include Africa Data Centres, Open Access Data Centres, 21st Century Technologies, Nxtra by Airtel, Equinix (MainOne), Digital Realty, and Rack Centre. The possible new entrant in the Nigeria data center market is Kasi Cloud.
2. Several global colocation providers are entering the Nigeria data center market by forming strategic partnerships with local enterprises or acquiring local companies. For example, in 2022, Equinix entered the market by acquiring data center facilities from MainOne. Likewise, Digital Realty acquired the data center facilities of Medallion Data Centres to establish its market presence.
3. In March 2025, Open Access Data Centres announced its plan to develop a new data center in Lagos with a power capacity of around 24 MW. The data center will be developed in two stages, with the first phase of 12 MW likely to come online by 2026.
4. In December 2024, Huawei Technologies launched a local cloud service in Nigeria. This launch ensures data residency within Nigeria, thereby aligning with the data protection regulations and significantly reducing latency from over 80 milliseconds to approximately 15 milliseconds for local customers.
5. Telecom operators such as MTN, Airtel Africa PLC, and Globacom are the major telecom operators that have launched commercial 5G services across the country.

EXISTING VS. UPCOMING DATA CENTERS

1. Existing Facilities in the Region (Area and Power Capacity)
2. Lagos
3. Other Cities
4. List of Upcoming Facilities in the Region (Area and Power Capacity)
5. Lagos
6. Other Cities

REPORT COVERAGE:

This report analyses the Nigerian data center market share. It elaborately 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. The segmentation includes:

1. IT Infrastructure
2. Server Infrastructure
3. Storage Infrastructure
4. Network Infrastructure
5. Electrical Infrastructure
6. UPS Systems
7. Generators
8. Transfer Switches & Switchgears
9. PDUs
10. Other Electrical Infrastructure
11. Mechanical Infrastructure
12. Cooling Systems
13. Rack Cabinets
14. Other Mechanical Infrastructure
15. Cooling Systems
16. CRAC and CRAH Units
17. Chillers Units
18. Cooling Towers, Condensers, and Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Building & Engineering Design
24. Fire Detection & Suppression Systems
25. Physical Security
26. Data Center Infrastructure Management (DCIM)
27. Tier Standard
28. Tier I & Tier II
29. Tier III
30. Tier IV 

VENDOR LANDSCAPE

1. IT Infrastructure Providers: Arista Networks, Broadcom, Dell Technologies, Hewlett-Packard Enterprise, Huawei Technologies, IBM, Lenovo, and NetApp.
2. Data Center Construction Contractors & Sub-Contractors: Arup, BlueSun DC, Edarat Group, Interkel Group, GREA (Gateway Real Estate Africa), and Future-tech. 
3. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Eaton, Envicool, KSTAR, Rehlko (Kohler), Legrand, Rittal, Schneider Electric, STULZ, and Vertiv.
4. Data Center Investors: 21st Century Technologies, Africa Data Centres, Digital Realty, Equinix (MainOne), MTN, Nxtra by Airtel, Open Access Data Centres, and Rack Centre.
5. New Entrants: Kasi Cloud.