Market Trends of Nigeria Data Center Cooling Industry
The IT & Telecom Segment to Have Significant Market Share
- The increasing number of IoT devices, Cloud adoption, and artificial intelligence (AI) applications in the region is driving the need for robust data processing and storage capabilities. At the Huawei Cloud Startup Summit Nigeria 2024, over 150 industry startups, venture capitalists, and partners convened in Lagos to discuss startup innovation, collaboration, and digital transformation. The summit, themed "Unleash the Power of Startups," showcased Huawei Cloud's commitment to supporting 100 Nigerian startups over the next two years, providing them with cutting-edge cloud-native infrastructure, expert services, and up to USD 150,000 credit voucher for cloud adoption.
- According to the report, AWS predicts that the Nigerian market will generate an additional economic value of N30.2 trillion (~0.02 USD trillion) over the next decade (2023-2033). This boost represents 0.36 percent of Nigeria's cumulative gross domestic product (GDP) and is attributed to the accelerated adoption of cloud technologies.
- The growing internet and e-commerce adoption in finance and other industries are the key drivers for the growth of colocation services in the country as companies increasingly migrate their operations to cloud and remote servers, thus creating the demand for feasible colocation services.
- Further, Nigeria is one of the prominent West African countries for network upgradation. The country, coupled with Ethiopia, is expected to account for one-third of mobile subscribers in Sub-Saharan Africa by 2025, which will be achieved with an advanced focus on upgrading the present network technologies.
- As of March 2024, 5G connectivity subscriptions accounted for 1.24% of Nigeria's total mobile connections, according to the latest statistics from the Nigerian Communications Commission (NCC). With the total active mobile connections in Nigeria at 219 million, this 1.24% translates to approximately 2.7 million Nigerians embracing the latest 5G technology.
Understand The Key Trends Shaping This Market
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Liquid Cooling to Have Significant Share in the Market
- Liquid cooling offers many benefits in data centers, making it an attractive option for cooling computing environments with high performance. It is more energy-efficient than conventional air conditioning. By providing precise temperature control, it reduces the need for overcooling and improves data center energy efficiency.
- Lagos is a prominent and strategically favorable location for data center facilities in Nigeria. The region houses the majority of service providers from several end users, generating the required demand for market growth.
- In Nigeria data centers, to serve the growing requirement of data storage in the region, the key data center operators coming up with huge IT load capacities, result in generating more heat from the servers, which require cooling solutions that provide efficiency and capacity benefits. For instance, In July 2024, MTN Nigeria unveiled its ambitious project to construct West Africa's largest data center in Lagos. This state-of-the-art facility is set to feature 1,500 racks and will maintain a carrier-neutral stance, allowing connections to multiple ISPs and cloud service providers. The center is anticipated to uphold the prestigious Tier 4 standard.
- In Nigeria, companies are introducing new products to meet the diverse needs of customers. Vertiv stands out as a leading player in the sector, having been recognized as the "Most Innovative Data Centre Cooling Company of the Year" at the Nigerian Tech Industry Awards. Vertiv is addressing well-known technology challenges, optimizing service and performance, and enhancing customer experience, contributing to advancements in the ICT sector. Furthermore, the company is exploring new technologies, such as direct-to-chip cooling and immersion cooling, to improve efficiency and handle increasing power consumption in data centers.
- Furthermore, Dow introduced DOWSIL Immersion Cooling Technology - a game changer for cooling cloud and data centers. This new technology enables optimal cooling and thermal conductivity, while reducing operation costs - energizing industry advancement, and ushering forward this Green Revolution. These instances will cater to sustainable and energy efficient immersion cooling solutions in Nigeria.
