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Nigeria Data Center Power Market Size (2024 - 2029)

The Nigeria Data Center Power Market is projected to experience significant growth over the forecast period, driven by the increasing demand for sustainable energy solutions in response to climate change challenges. The market's expansion is supported by initiatives like the Renewable Energy Master Plan, which aims to enhance the proportion of renewable energy in Nigeria's energy mix. This growth trajectory is further bolstered by the development of IT load capacity, raised floor space, and the installation of racks, particularly concentrated in Lagos. Additionally, the construction of submarine cable systems is set to improve connectivity, contributing to the market's overall development.

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Market Size of Nigeria Data Center Power Industry

Nigeria Data Center Power Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 82.30 Million
Market Size (2029) USD 212.70 Million
CAGR (2024 - 2029) 21.20 %
Market Concentration High

Major Players

Nigeria Data Center Power Market Major Players

*Disclaimer: Major Players sorted in no particular order

Nigeria Data Center Power Market Analysis

The Nigeria Data Center Power Market size is estimated at USD 82.30 million in 2024, and is expected to reach USD 212.70 million by 2029, growing at a CAGR of 21.20% during the forecast period (2024-2029).

Amid the upsurge of the devastating impacts of climate change, especially in Africa due to a significant surge in greenhouse gas emissions, major firms have been urged to consider switching to environmentally friendly forms of energy to follow the global target of maintaining emissions below 1.5 degrees. In order to reduce the carbon footprint of data centers, a smart combination of innovation and technology is needed. The Renewable Energy Master Plan (REMP) in Nigeria strives to increase the share of renewable energy in the overall energy mix to 23% in 2025 and 36% in 2030.

  • Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigerian data center power market is expected to reach 220 MW by 2029.
  • Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.6 million sq. ft by 2029.
  • Planned Racks: The country's total number of racks to be installed is expected to reach 32,000 units by 2029. Lagos is expected to house the maximum number of racks by 2029.
  • Planned Submarine Cables: There are close to eight submarine cable systems connecting Nigeria, and many are under construction

Nigeria Data Center Power Industry Segmentation

Data center power refers to the power infrastructure, including electrical components and electrical distribution systems, which provide the power necessary to operate and support the devices and servers within the data center. It includes various components and technologies designed to ensure a reliable, uninterruptible power supply for data center IT equipment, including uninterruptible power supplies (UPS), power distribution units (PDU), backup generators, and other power management solutions. Data center operators achieve data center redundancy through duplicated components to maintain uninterrupted operations in the event of failure of some components and to maintain uptime during maintenance.

The Nigerian data center power market is segmented by power infrastructure (electrical solution (UPS systems, generators, power distribution solutions (PDU, switchgear, critical power distribution, transfer switches, remote power panels, and others)) and service) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end user). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

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Nigeria Data Center Power Market Size Summary

The Nigerian data center power market is poised for significant growth, driven by the country's expanding telecom sector and increasing demand for data services. As one of Africa's largest telecom markets, Nigeria's robust economic framework supports a surge in data center investments. The market is influenced by the need for advanced infrastructure to support the deployment of 5G and enhanced broadband connectivity. This demand is further fueled by the government's Renewable Energy Master Plan, which aims to integrate more renewable energy into the national grid, aligning with global sustainability goals. The shift towards direct current power systems in telecom data centers and the adoption of intelligent power distribution units are key trends shaping the market landscape.

The competitive environment in the Nigerian data center power market is characterized by the presence of major players such as Aggreko ZA, ABB Ltd, and Cummins Inc., who are actively expanding their market share through strategic collaborations and innovative product offerings. The introduction of advanced technologies, such as switched power distribution units and lithium-ion UPS systems, underscores the market's focus on efficiency and sustainability. Additionally, partnerships with global tech giants like Microsoft and initiatives to explore eco-friendly power sources, such as hydrogen fuel cells, highlight the industry's commitment to reducing carbon footprints. As the market continues to evolve, it is expected to attract further investments and opportunities, driven by the increasing need for reliable and scalable data center solutions.

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Nigeria Data Center Power Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Rising Adoption of Mega Data Centers and Cloud Computing

      2. 1.2.2 Increasing Demand to Reduce Operational Costs

    3. 1.3 Market Restraints

      1. 1.3.1 High Cost of Installation and Maintenance

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Power Infrastructure

      1. 2.1.1 Electrical Solution

        1. 2.1.1.1 UPS Systems

        2. 2.1.1.2 Generators

        3. 2.1.1.3 Power Distribution Solutions

          1. 2.1.1.3.1 PDU

          2. 2.1.1.3.2 Switchgear

          3. 2.1.1.3.3 Critical Power Distribution

          4. 2.1.1.3.4 Transfer Switches

          5. 2.1.1.3.5 Remote Power Panels

          6. 2.1.1.3.6 Others

      2. 2.1.2 Service

    2. 2.2 End User

      1. 2.2.1 IT and Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media and Entertainment

      5. 2.2.5 Other End User

Nigeria Data Center Power Market Size FAQs

The Nigeria Data Center Power Market size is expected to reach USD 82.30 million in 2024 and grow at a CAGR of 21.20% to reach USD 212.70 million by 2029.

In 2024, the Nigeria Data Center Power Market size is expected to reach USD 82.30 million.

Nigeria Data Center Power Market Report Snapshots

Nigeria Data Center Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)