Nigeria’s $630 Million Investment in Data Centres to Meet Surge in Internet Usage

As internet usage continues to soar, data centre operators in Nigeria are investing over $630 million to expand their facilities and support growing local cloud demands. Since 2019, the country’s monthly internet usage has skyrocketed by nearly 700%, reaching over 1 million terabytes by January 2025. This surge is primarily driven by the widespread adoption of digital services like streaming and social media. Leading mobile operators MTN Nigeria and Airtel are ramping up investments in data centres to keep up with this demand.

In response to the increasing need for local infrastructure, MTN and Airtel have made significant strides. Airtel launched a new hyper-scale data centre in Lagos in March 2024 to improve access speeds and reduce data management costs. Meanwhile, MTN revealed plans to build a 1,500-rack, Tier 4 data centre by June 2025. These moves aim to support digital transformation across industries, providing the space and services needed for businesses to optimize their operations.

Data centres play a crucial role in the digital economy by ensuring secure data storage and processing, while also reducing vulnerability to disruptions, such as the undersea cable breaks that affected West Africa in early 2024. Three major operators—Equinix, RackCentre, and OADC—are expanding their facilities to further strengthen the country’s resilience. Equinix is investing $140 million to expand its footprint in southern Nigeria, while OADC is dedicating $240 million to expand its Lagos facility by 2027.

Despite these efforts, Nigeria’s data centre infrastructure still lags behind South Africa and Kenya. Industry experts warn of a $600 million gap in the country’s data centre capacity. The increasing demand for advanced technologies like AI and high-performance computing is driving the need for more facilities. Operators such as RackCentre and Kasi Cloud Limited are pushing to close this gap and further support Nigeria’s digital growth in the coming years.

Source: Business day