Nigeria Data Center Market - Investment Analysis & Growth Opportunities 2023-2028

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THE NIGERIA DATA CENTER MARKET SIZE WAS VALUED AT USD 230 MILLION IN 2022 AND IS EXPECTED TO REACH USD 415 MILLION BY 2028, GROWING AT A CAGR OF 10.34% DURING THE FORECAST PERIOD

The Nigeria Data Center Market Report Includes Size in Terms of

  • IT Infrastructure: Servers, Storage Systems, and Network Infrastructure
  • Electrical Infrastructure: UPS Systems, Generators, Switches & Switchgears, PDUs, and Other Electrical Infrastructure
  • Mechanical Infrastructure: Cooling Systems, Rack Cabinets, and Other Mechanical Infrastructure
  • General Construction: Core & Shell Development, Installation & Commissioning Services, Building & Engineering Design, Fire Detection & Suppression Systems, Physical Security, and DCIM
  • Tier Standard: Tier I & Tier II, Tier III, and Tier IV

Get Insights on 15 Existing Data Centers and 9 Upcoming Facilities across Nigeria

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NIGERIA DATA CENTER MARKET REPORT SCOPE

REPORT ATTRIBUTEDETAILS
Market Size (Investment)USD 230 MILLION(2022)
Market SizeUSD 415 MILLION(2028)
CAGR10.34%(2022-2028)
Market Size (Power Capacity)32 MW (2028)
Market Size ( Area)156 thousand sq. Feet (2028)
Colocation Market SizeUSD 270 Million
Historic Year2021-2022
Base Year2022
Forecast Year2023-2028
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The Nigeria data center market size will witness investments of USD 415 million by 2028, growing at a CAGR of 10.34% during the forecast period. Nigeria's position as a key data center market in Africa is on the rise, thanks to its focus on digitalization and the incorporation of cutting-edge technologies like IoT, big data, AI & ML, and advanced network connectivity services.

In Lagos, the government collaborates with public and private sector entities to implement a smart city project to enhance efficiency and connectivity. Further, to ensure cost-effective IoT connectivity in Nigeria, IoT Africa has joined forces with the Sigfox Operator, facilitating greater adoption of IoT and big data solutions, thereby driving the Nigeria data center market.

KEY HIGHLIGHTS

  • Nigeria is connected to approximately seven submarine cables, linking European and some APAC countries, with another upcoming cable called 2Africa expected to be operational in 2023.
  • The government has implemented various initiatives to promote data center investments, including the National Digital Economic Policy Strategy (NDEPS), which aims to digitize Nigeria by 2030.
  • The growing adoption of cloud-based services drives the expansion of retail and wholesale colocation offerings in Nigeria, leading to increased demand for data center spaces.
  • Nigeria has about 14 operational Special Economic Zones (SEZs) that provide foreign companies with tax exemptions and other incentives to encourage investment.
  • Approximately 80% of Nigeria's power generation comes from natural gas, with a significant portion also generated through coal, while the country leads in using oil-fired backup generators in Africa.
  • The growth of the IT industry in Nigeria has facilitated the development of IoT, connecting devices to the internet and impacting various sectors, leading to higher data center demands.
  • The deployment of Eco diesel generators is becoming popular in Nigeria, offering low-carbon renewable fuel to power data centers during emergencies.
  • The government's drive towards digitalization is expected to fuel growth in the Nigerian colocation market. At the same time, the increasing demand for the internet and smart devices will further boost the Nigeria data center market.
  • In Lagos, Cloud Exchange and Huawei jointly introduced Africa's first Tier IV modular data center, emphasizing environmental sustainability and supporting Nigeria's digital economy.

WHY SHOULD YOU BUY THIS RESEARCH?

  • Market size available in the investment, area, power capacity, and Nigeria colocation market revenue.
  • An assessment of the data center investment in Nigeria by colocation, hyperscale, and enterprise operators.
  • Investments in the area (square feet) and power capacity (MW) across cities in the country.
  • A detailed study of the existing Nigeria data center market landscape, an in-depth industry analysis, and insightful predictions about market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in Nigeria
    • Facilities Covered (Existing): 15
    • Facilities Identified (Upcoming): 09
    • Coverage: 2+ Locations
    • Existing vs. Upcoming (Area)
    • Existing vs. Upcoming (IT Load Capacity)
  • Data center colocation market in Nigeria
    • Market Revenue & Forecast (2022-2028)
    • Retail Colocation Pricing
    • Wholesale Colocation Pricing
  • The Nigerian market investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
  • A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the market.
  • Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the market.
  • A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

  • Some of the key investors in the Nigeria data center market are 21st Century Technology, Airtel Nigeria, Africa Data Centres, Galaxy Backbone, MDX-i (Equinix), Medallion Data Center (Digital Realty & Pembani Remgro Infrastructure Fund), Rack Centre, and others.
  • In 2022, the Nigeria data center market witnessed investments from companies like Kasi Cloud and Open Access Data Centres.
  • Telecom operators such as MTN Nigeria, Airtel Nigeria, 9mobile, and others played an important role in connectivity across the country.
  • The migration of on-premises infrastructure to cloud/colocation by local enterprises will play a vital role in colocation revenue growth.

EXISTING VS. UPCOMING DATA CENTERS

  • Existing Facilities in the Region (Area and Power Capacity)
    • Lagos
    • Other Cities
  • List of Upcoming Facilities in the region (Area and Power Capacity)

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:

  • IT Infrastructure
    • Servers
    • Storage Systems
    • Network Infrastructure
  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Rack Cabinets
    • Other Mechanical Infrastructure
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Building & Engineering Design
    • Fire Detection & Suppression Systems
    • Physical Security
    • DCIM
  • Tier Standard
    • Tier I & Tier II
    • Tier III
    • Tier IV

VENDORS

  • IT Infrastructure Providers: Arista Networks, Broadcom, Dell Technologies, Juniper Networks, Hewlett Packard Enterprise, Huawei Technologies, IBM, Lenovo, and NetApp.
  • Data Center Construction Contractors & Sub-Contractors: Arup, CAP DC, Edarat Group, Interkel Group, Gateway Real Estate Africa, Future-tech, and NLE.
  • Support Infrastructure Providers: ABB, Caterpillar, Cummins, Eaton, Envicool, Kstar, KOHLER-SDMO, Legrand, Rittal, STULZ, Schneider Electric, and Vertiv.
  • Data Center Investors: 21st Century Technology, Africa Data Centres, Galaxy Backbone, MainOne (Equinix), Medallion Data Center (Digital Realty & Pembani Remgro Infrastructure Fund), MTN, ipNX, Rack Centre.
  • New Entrants: Kasi Cloud Ltd., Airtel Nigeria, and Open Access Data Centres.

TARGET AUDIENCE

  • Real Estate Investment Trusts (REIT)
  • Construction Contractors
  • Infrastructure Providers
  • New Entrants
  • Consultants/Consultancies/Advisory Firms
  • Corporate and Governments Agencies

Frequently Asked Questions

How big is the Nigeria data center market?

The Nigeria data center market will witness investments of USD 415 million in 2028.

How many existing and upcoming data center facilities exist in Nigeria?

Nigeria has around 15 existing and nine upcoming data center facilities.

What is the growth rate of the Nigeria data center market?

The Nigeria data center market is growing at a CAGR of 10.34% during the forecast period.

How much MW of power capacity will be added across Nigeria during 2023-2028?

Around 150 MW of power capacity will be added across Nigeria during 2023-2028.

What factors are driving the Nigeria data center market?

Digital transformation, deployment of submarine cables, rising demand for managed cloud services, renewable energy, and adoption of big data & IoT increasing data center investments are driving the Nigeria data center industry.

The Nigeria data center market size is projected to reach USD 415 million by 2028, growing at a CAGR of 10.34% from 2022 to 2028.

The following factors are likely to contribute to the growth of the Nigeria data center market during the forecast period:

  • Adoption of Cloud Fueling Data Center Investment
  • Deployment of Modular Data Centers
  • Big Data & IoT Fueling Data Center Investments

Base Year: 2022

Forecast Year: 2023-2028

The report considers the present scenario of the Nigeria data center market and its market dynamics for 2023−2028. It covers a detailed overview of several market growth enablers, restraints, and trends. The study includes the demand and supply aspects of the market.  

The report includes the investment in the following areas: 

  • IT Infrastructure
    • Servers
    • Storage Systems
    • Network Infrastructure
  • Electrical Infrastructure
    • UPS Systems
    • Generators
    • Switches & Switchgears
    • PDUs
    • Other Electrical Infrastructure
  • Mechanical Infrastructure
    • Cooling Systems
    • Rack Cabinets
    • Other Mechanical Infrastructure
  • General Construction
    • Core & Shell Development
    • Installation & Commissioning Services
    • Building & Engineering Design
    • Fire Detection & Suppression Systems
    • Physical Security
    • DCIM
  • Tier Standard
    • Tier I & Tier II
    • Tier III
    • Tier IV

VENDOR LANDSCAPE

IT Infrastructure Providers

  • Arista Networks
  • Broadcom
  • Dell Technologies
  • Juniper Networks
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • IBM
  • Lenovo
  • NetApp

Data Center Construction Contractors & Sub-Contractors

  • Arup
  • CAP DC
  • Edarat Group
  • Interkel Group
  • Gateway Real Estate Africa
  • Future-tech
  • NLE

Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Envicool
  • Kstar
  • KOHLER-SDMO
  • Legrand
  • Rittal
  • STULZ
  • Schneider Electric
  • Vertiv

Data Center Investors

  • 21st Century Technology
  • Africa Data Centres
  • Galaxy Backbone
  • MainOne (Equinix)
  • Medallion Data Center (Digital Realty & Pembani Remgro Infrastructure Fund)
  • MTN
  • ipNX
  • Rack Centre

New Entrants

  • Kasi Cloud Ltd.
  • Airtel Nigeria
  • Open Access Data Centres

Exhibit 1 Third-Party Data Centers Snapshot

Exhibit 2 Third-Party Data Center Snapshot by Cities

Exhibit 3 Area Developed by Cities (Thousand Square Feet)

Exhibit 4 Power Capacity by Cities (MW)

Exhibit 5 Data Center Market Size & Forecast by Investment ($ Million)

Exhibit 6 Data Center Market Size & Forecast by Area 2022−2028 (Thousand Square Feet)

Exhibit 7 Market Size & Forecast by Power Capacity 2022−2028 (MW)

Exhibit 8 Data Center Colocation Service Revenue: Market Size & Forecast by 2022−2028 ($ Million)

Exhibit 9 Market Size & Forecast by IT Infrastructure 2022−2028 ($ Million)

Exhibit 10 Market Size & Forecast by Electrical Infrastructure 2022−2028 ($ Million)

Exhibit 11 Market Size & Forecast by Mechanical Infrastructure 2022−2028 ($ Million)

Exhibit 12 Market Size & Forecast by Cooling Systems 2022−2028 ($ Million)

Exhibit 13 Market Size & Forecast by General Construction 2022−2028 ($ Million)

Exhibit 14 Market Size & Forecast by Tier Standards 2022−2028 ($ Million)

 

List of Tables

Table 1 List of Upcoming Data Center Projects

Table 2 Data Center Site Selection Criteria

Table 3 Overall Market Size & Forecast 2022−2028

Table 4 Market Size & Forecast by Infrastructure 2022−2028 ($ Million)

Table 5 Market Size & Forecast by IT Infrastructure 2022−2028 ($ Million)

Table 6 Market Size & Forecast by Electrical Infrastructure 2022−2028 ($ Million)

Table 7 Market Size & Forecast by Mechanical Infrastructure 2022−2028 ($ Million)

Table 8 Market Size & Forecast by Cooling Systems 2022−2028 ($ Million)

Table 9  Market Size & Forecast by General Construction 2022−2028 ($ Million)

Table 10  Investment Market Size & Forecast by Tier Standards 2022−2028 ($ Million)

  1. Existing & Upcoming Third-Party Data Centers in Nigeria
    • Historical Market Scenario
    • 15+ Unique Data Center Properties
    • Data Center IT Load Capacity
    • Data Center White Floor Area
    • Existing Vs Upcoming Data Center Capacity by Cities
    • Cities Covered
      • Lagos
      • Other Cities
    • List of Upcoming Data Center Facilities
  2. Investment Opportunities in Nigeria
    • Microeconomic and Macroeconomic Factors of the Nigeria Market
    • Investment Opportunities in Nigeria
    • Investment by Area
    • Investment by Power Capacity
  3. Data Center Colocation Market in Nigeria
    • Colocation Services Market in Nigeria
    • Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-ons
  4. Market Dynamics
    • Market Drivers
    • Market Trends
    • Market Restraints
  5. Market Segmentation
    • IT Infrastructure: Market Size & Forecast
    • Electrical Infrastructure: Market Size & Forecast
    • Mechanical Infrastructure: Market Size & Forecast
    • General Construction Services: Market Size & Forecast
  6. Tier Standard Investment
    • Tier I & II
    • Tier III
    • Tier IV
  7. Key Market Participants
    • IT Infrastructure Providers
    • Construction Contractors
    • Support Infrastructure Providers
    • Data Center Investors
    • New Entrants
  8. Appendix
    • Market Derivation
    • Quantitative Summary

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Frequently Asked Questions

How big is the Nigeria data center market?

The Nigeria data center market will witness investments of USD 415 million in 2028.

How many existing and upcoming data center facilities exist in Nigeria?

Nigeria has around 15 existing and nine upcoming data center facilities.

What is the growth rate of the Nigeria data center market?

The Nigeria data center market is growing at a CAGR of 10.34% during the forecast period.

How much MW of power capacity will be added across Nigeria during 2023-2028?

Around 150 MW of power capacity will be added across Nigeria during 2023-2028.

What factors are driving the Nigeria data center market?

Digital transformation, deployment of submarine cables, rising demand for managed cloud services, renewable energy, and adoption of big data & IoT increasing data center investments are driving the Nigeria data center industry.