Nigeria's AI Data Centre Boom

Nigeria is experiencing a surge in data centre investments, approaching $1 billion, driven by its young, tech-savvy population and the growing demand for AI infrastructure. This positions Nigeria as a leading technology hub in Africa, with companies like Equinix, Microsoft, MTN, Rack Centre, Airtel, and Open Access Data Centres expanding their capabilities to handle AI workloads. Airtel Nigeria, for example, is investing $120 million in a 38-megawatt data centre focused on AI infrastructure, expected to be operational in 2026. MTN Group has also commenced building its first AI data centre in Nigeria, a $240 million project.

The expansion is fuelled by Nigeria's large population, with a median age of 18, and increasing digital activity. This demographic is driving demand for faster and more resilient data infrastructure as businesses shift towards cloud and hybrid models. The cloud computing market in Nigeria is projected to reach $3.28 billion by 2030, growing at a compound annual growth rate of 26%. These investments aim not only to meet general computing needs but also to localise AI capabilities, developing AI models in local languages and tailoring solutions to regional requirements.

Recent regulatory reforms have boosted investor confidence by establishing digital governance frameworks and strengthening data protection rules. MTN's new Dabengwa Data Centre in Lagos has already reached full capacity, highlighting the surging demand for AI and cloud infrastructure. This rapid uptake reflects a broader trend across Africa, where data centre capacity is expected to triple by 2030, with Nigeria playing a pivotal role in this growth.