Nigeria Data Center Market - Investment Analysis & Growth Opportunities 2024-2029

INDUSTRY OVERVIEW

The Nigeria data center market will witness investments of USD 646 million by 2029, growing at a CAGR of 17.14% during the forecast period. Nigeria is one of the fastest-growing markets in Africa after South Africa and Kenya. This is due to the rising demand for data centers, government support, and several other factors. Furthermore, the market has strong connectivity through submarine cables. It has around eight submarine cables connecting European countries and a few APAC countries, out of which the 2Africa submarine cable landed in Nigeria in 2024. Also, Rack Centre, Equinix, Digital Realty (Medallion Communications), 21st Century Technologies, Galaxy Backbone, and Africa Data Centres are major colocation data center operators in the Nigeria data center market.

The Nigeria data center market is fueled by its digitalization efforts and the adoption of innovative technologies, such as the Internet of Things (IoT), Big data, artificial intelligence (AI), machine learning (ML), and advanced network connectivity services. For instance, in October 2023, Airtel Nigeria partnered with local company MediaTek to provide better 5G routers and boost internet connectivity. Also, the government has launched several initiatives to support the development of data centers in Nigeria. For instance, the National Digital Economy Policy and Strategy (NDEPS) undertakes various initiatives to ensure Nigeria's digitalization by 2030.

KEY HIGHLIGHTS

1. Nigeria's information and communications technology (ICT) sector is experiencing robust expansion, fueled by financial services, oil & gas, and fintech industries—the roll-out of 5G and advances in cloud computing infrastructure open new investment prospects for data centers.
2. 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.
3. 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% repatriation of capital and profits.
4. The Nigerian government is working toward sustainability. The government promotes clean energy technologies for sustainable start-ups and small and medium enterprises (SMEs). This move addresses the country's environmental challenges by adopting the Global Clean Technology Innovation Program (GCIP).
5. 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.
6. In 2023, the Nigerian industry grew in data center investments, accounting for over 27% of Africa's total number of projects.

WHY SHOULD YOU BUY THIS RESEARCH?

1. Market size is available in terms of investment, area, power capacity, and Nigeria's colocation market revenue.
2. An assessment of the data center investment in Nigeria by colocation, hyperscale, and enterprise operators.
3. 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 industry analysis, and insightful predictions about industry 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): 13
8. Coverage: 2+ Cities
9. Existing vs. Upcoming (Area)
10. Existing vs. Upcoming (IT Load Capacity)
11. Data Center Colocation Market in Nigeria
12. Colocation Market Revenue & Forecast (2023-2029)
13. Retail Colocation Pricing
14. The Nigeria data center 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 industry.

VENDOR LANDSCAPE

1. Regarding IT infrastructure vendors, the Nigeria data center market is dominated by global vendors such as Arista Networks, Dell Technologies, Huawei, IBM, Lenovo, and others, which are increasing their expertise in the market.
2. The market has several global support infrastructure providers that will increase the market's competitiveness and lead to lower prices for infrastructure in the coming years. Some of the support infrastructure vendors in the Nigeria data center market include ABB, Caterpillar, Cummins, Eaton, Envicool, Kstar, and others.
3. Some key colocation investors in the Nigeria data center market are 21st Century Technology, Airtel Africa, Africa Data Centres, MainOne Medallion Data Center, Open Access Data Centres (OADC), and others.
4. In December 2023, Airtel Africa launched Nxtra, its first data center facility to become operational in the Nigeria data center market.
5. Kasi Cloud is the new entrant into the Nigeria data center market as of 2023, having planned for one data center facility in Lagos with a power capacity of around 44.4MW.

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 Nigeria data center market share. It 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. The segmentation includes:

1. IT Infrastructure
2. Servers
3. Storage Systems
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 & CRAH Units
17. Chiller Units
18. Cooling Towers, Condensers & Dry Coolers
19. Other Cooling Units
20. General Construction
21. Core & Shell Development
22. Installation & Commissioning Services
23. Engineering & Building 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, IBM, Juniper Networks, Lenovo, NetApp.
2. Data Center Construction Contractors & Sub-Contractors: Arup, CAP DC, Edarat Group, Interkel Group, Gateway Real Estate Africa, Future-tech, NLE.
3. Support Infrastructure Providers: ABB, Caterpillar, Cummins, Eaton, Envicool, Kstar, KOHLER-SDMO, Legrand, Rittal, Schneider Electric, STULZ, Vertiv.
4. Data Center Investors: 21st Century Technologies, Africa Data Centres, Airtel Africa, MainOne, Medallion Data Center, Open Access Data Centres (OADC), Rack Centre.
5. New Entrants: Kasi Cloud.

TARGET AUDIENCE

1. Real Estate Investment Trusts
2. Construction Contractors
3. Infrastructure Providers
4. New Entrants
5. Consultants/Consultancies/Advisory Firms
6. Corporate and Government Agencies