logo

Nigeria Data Center Market Size

The Nigeria Data Center Market is in its nascent stage, with significant growth anticipated in its capacity and revenue over the forecast period. The market's expansion is driven by the introduction of Tier 3 colocation facilities, which are expected to meet the increasing demand for reliable data services. Although Nigeria currently lacks Tier 1 and Tier 2 facilities, the development of Tier 3 and the upcoming Tier 4 facilities are set to enhance the market's infrastructure, supporting the deployment of advanced technologies such as AI, ML, and IoT. This growth trajectory reflects the country's burgeoning internet user base and the advancements in network infrastructure, including 2G and 5G networks.

INSTANT ACCESS

Home right-chevron-icon Market Analysis right-chevron-icon Technology, Media and Telecom Research right-chevron-icon Information Technology Research right-chevron-icon Nigeria Data Center Market right-chevron-icon Market Size

Market Size of nigeria data center Industry

Nigeria Data Center Market Summary
share button
svg icon Study Period 2017 - 2029
svg icon Market Volume (2024) 116.7 MW
svg icon Market Volume (2029) 226.7 MW
svg icon Largest Share by Tier Type Tier 3
svg icon CAGR (2024 - 2029) 14.20 %
svg icon Fastest Growing by Tier Type Tier 3

Major Players
major-player-company-image

*Disclaimer: Major Players sorted in no particular order

Key Players

WHY BUY FROM US?

1. CRISP & INSIGHTFUL
2. TRUE BOTTOM-UP
3. EXHAUSTIVENESS
4. TRANSPARENCY
5. CONVENIENCE
KNOW MORE

Nigeria Data Center Market Analysis

The Nigeria Data Center Market size is estimated at 116.7 MW in 2024, and is expected to reach 226.7 MW by 2029, growing at a CAGR of 14.20%. Further, the market is expected to generate colocation revenue of USD 251.1 Million in 2024 and is projected to reach USD 578.1 Million by 2029, growing at a CAGR of 18.15% during the forecast period (2024-2029).

USD 251.13 Million

Market Size in 2024

USD 578.1 Million

Market Size in 2029

53.3%

CAGR (2017-2023)

18.2%

CAGR (2024-2029)

IT Load Capacity

116.72 MW

Value, IT Load Capacity, 2024

Icon image

The IT load capacity of the data center market will have steady growth and is expected to reach 226.7 MW by 2029. High bandwidth speeds and growing demand for digitization services among SMEs increases market demand.

Total Raised Floor Space

Sq. Ft. 3.33 M

Volume, Raised Floor Space, 2024

Icon image

The total raised floor area of the country is expected to increase to 0.6 million sq. ft by 2029. Medallion Communications Ltd (Digital Realty) is expected to have two mega-sized data center facilities in the forecast period.

Installed Racks

16,675

Volume, Installed Racks, 2024

Icon image

The number of installed racks is expected to reach 32,389 units by 2029. Digital Realty, through Medallion Communications Ltd, adding about 160 MW through its upcoming mega facilities in Lagos.

# of DC Operators & DC Facilities

8 and 14

Volume, DC Facilities, 2024

Icon image

There are 14 colocation data center facilities in Nigeria. The region has a cable landing station for multiple major fiber cables in Nigeria, offering technological and industrial accessibility and faster networking speeds.

Leading Market Player

32%

Market Share, Africa Data Centers (Cassava Technologies), 2023

Icon image

Africa Data Centers (Cassava Technologies) was the leading player in the Nigerian market in the historical period and rolled out four data center facilities with a capacity of 20.7 MW.

Tier 3 holds the majority market share in 2023, and will continue to dominate in coming years

  • As the data center market in Nigeria is still in its initial phase, service providers target to comply with Tier 3 norms to introduce Tier 3 colocation facilities in the region. Tier 3 facilities accounted for an IT load capacity of 51.44 MW in 2022 and are expected to register a CAGR of 23.42% to reach 224.44 MW by 2029.
  • To make the facilities future-ready, Tier 3 certifications that offer reliable redundancy and other operational criteria help serve the long-term growth in the market. These facilities are expected to facilitate increasing demand in the region. As of January 2022, there were more than 100 million internet users in the country, with an internet penetration rate of 51%.
  • Nigeria does not feature any Tier 1 and Tier 2 facilities, about the new and more capable Tier 3 facilities in the region. Similarly, with the network advancements and development for faster networks in the region, including the increasing infrastructure for 2G and 5G networks, the country should witness Tier 4 facilities too to accommodating the demand for deploying cloud-native new technologies like AI, ML, and IoT in the forecast period.
  • The market is getting placed with Tier 4 facilities construction and not contributing completely to the market. This provides the overall scenario for future developments. In September 2022, Galaxy Backbone completed the construction of its Tier 4 data center facility, which would account for about 2.2 petabytes to provide cloud and disaster recovery services.
Nigeria Data Center Market

Nigeria Data Center Industry Segmentation

Lagos are covered as segments by Hotspot. Large, Massive, Medium, Mega, Small are covered as segments by Data Center Size. Tier 1 and 2, Tier 3, Tier 4 are covered as segments by Tier Type. Non-Utilized, Utilized are covered as segments by Absorption.

  • As the data center market in Nigeria is still in its initial phase, service providers target to comply with Tier 3 norms to introduce Tier 3 colocation facilities in the region. Tier 3 facilities accounted for an IT load capacity of 51.44 MW in 2022 and are expected to register a CAGR of 23.42% to reach 224.44 MW by 2029.
  • To make the facilities future-ready, Tier 3 certifications that offer reliable redundancy and other operational criteria help serve the long-term growth in the market. These facilities are expected to facilitate increasing demand in the region. As of January 2022, there were more than 100 million internet users in the country, with an internet penetration rate of 51%.
  • Nigeria does not feature any Tier 1 and Tier 2 facilities, about the new and more capable Tier 3 facilities in the region. Similarly, with the network advancements and development for faster networks in the region, including the increasing infrastructure for 2G and 5G networks, the country should witness Tier 4 facilities too to accommodating the demand for deploying cloud-native new technologies like AI, ML, and IoT in the forecast period.
  • The market is getting placed with Tier 4 facilities construction and not contributing completely to the market. This provides the overall scenario for future developments. In September 2022, Galaxy Backbone completed the construction of its Tier 4 data center facility, which would account for about 2.2 petabytes to provide cloud and disaster recovery services.
Hotspot
Lagos
Rest of Nigeria
Data Center Size
Large
Massive
Medium
Mega
Small
Tier Type
Tier 1 and 2
Tier 3
Tier 4
Absorption
Non-Utilized
Utilized
By Colocation Type
Hyperscale
Retail
Wholesale
By End User
BFSI
Cloud
E-Commerce
Government
Manufacturing
Media & Entertainment
Telecom
Other End User
customize-icon Need A Different Region Or Segment?
Customize Now

Nigeria Data Center Market Size Summary

The Nigeria data center market is in a nascent stage, with a focus on developing Tier 3 colocation facilities to meet the growing demand for data services. These facilities are designed to offer reliable redundancy and operational criteria, supporting the long-term growth of the market. The increasing internet penetration and the rise in smartphone usage have significantly contributed to the data traffic in the country. As more Nigerians access the internet through smartphones and tablets, the demand for data centers is expected to rise. The market is also witnessing advancements in network infrastructure, including the rollout of 2G and 5G networks, which are paving the way for the development of Tier 4 facilities. These advancements are crucial for accommodating cloud-native technologies such as AI, ML, and IoT.

The market is fairly consolidated, with major players like Africa Data Centers, Digital Realty, MDXi, MTN Nigeria Communications, and WIOCC dominating the landscape. The acquisition of MainOne by Equinix highlights the strategic moves by global players to expand their presence in Africa. The COVID-19 pandemic has accelerated the shift towards virtual platforms, further driving data consumption. The increase in online transactions and e-commerce activities has also contributed to the surge in data traffic. As Nigeria continues to evolve its data center capabilities, the market is poised for significant growth, supported by the country's large population and increasing mobile phone penetration.

Explore More >

Nigeria Data Center Market Size - Table of Contents

  1. 1. MARKET SEGMENTATION (INCLUDES MARKET SIZE IN VOLUME, FORECASTS UP TO 2029 AND ANALYSIS OF GROWTH PROSPECTS)

    1. 1.1 Hotspot

      1. 1.1.1 Lagos

      2. 1.1.2 Rest of Nigeria

    2. 1.2 Data Center Size

      1. 1.2.1 Large

      2. 1.2.2 Massive

      3. 1.2.3 Medium

      4. 1.2.4 Mega

      5. 1.2.5 Small

    3. 1.3 Tier Type

      1. 1.3.1 Tier 1 and 2

      2. 1.3.2 Tier 3

      3. 1.3.3 Tier 4

    4. 1.4 Absorption

      1. 1.4.1 Non-Utilized

      2. 1.4.2 Utilized

        1. 1.4.2.1 By Colocation Type

          1. 1.4.2.1.1 Hyperscale

          2. 1.4.2.1.2 Retail

          3. 1.4.2.1.3 Wholesale

        2. 1.4.2.2 By End User

          1. 1.4.2.2.1 BFSI

          2. 1.4.2.2.2 Cloud

          3. 1.4.2.2.3 E-Commerce

          4. 1.4.2.2.4 Government

          5. 1.4.2.2.5 Manufacturing

          6. 1.4.2.2.6 Media & Entertainment

          7. 1.4.2.2.7 Telecom

          8. 1.4.2.2.8 Other End User

Nigeria Data Center Market Size FAQs

The Nigeria Data Center Market is projected to register a CAGR of 14.20% during the forecast period (2024-2029).

Africa Data Centers (Cassava Technologies), Digital Realty (Medallion Communications Ltd), MDXi (MainOne by Equinix), MTN Nigeria Communications Ltd and WIOCC (Open Access Data Centres) are the major companies operating in the Nigeria Data Center Market.

Nigeria Data Center Market Report Snapshots

Nigeria Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029