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Nigeria Data Center Rack Market Market Size (2024 - 2029)

The Nigerian data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing among small and medium-sized enterprises, government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's capacity and infrastructure developments, including the construction of IT load capacity and raised floor space. The market's size is further anticipated to grow with the planned installation of a substantial number of racks and the development of submarine cable systems, enhancing connectivity and data management capabilities in the region.

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Market Size of Nigeria Data Center Rack Industry

Nigeria Data Center Rack Market Summary
Study Period 2019 - 2030
Base Year For Estimation 2023
Market Volume (2024) 13.66 Thousand units
Market Volume (2030) 47.77 Thousand units
CAGR (2024 - 2030) 23.20 %
Market Concentration High

Major Players

Nigeria Data Center Rack Market Major Players

*Disclaimer: Major Players sorted in no particular order

Nigeria Data Center Rack Market Analysis

The Nigeria Data Center Rack Market size is estimated at 13.66 Thousand units in 2024, and is expected to reach 47.77 Thousand units by 2030, growing at a CAGR of 23.20% during the forecast period (2024-2030).

The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.

Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigeria data center rack 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. Johannesburg 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 Rack Industry Segmentation

A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.

The Nigerian data center rack market is segmented by rack size (quarter rack, half rack, full rack) and by end user (IT & telecommunication, BFSI, government, and media & entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.

Rack Size
Quarter Rack
Half Rack
Full Rack
End-User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End-Users
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Nigeria Data Center Rack Market Size Summary

The Nigerian data center rack market is experiencing significant growth, driven by the increasing demand for cloud computing, government regulations on data security, and substantial investments from local players. The expansion of retail and wholesale colocation services is fueled by the rising adoption of cloud-based services, which necessitates more space and racks within data centers. The digital economy's growth, coupled with increased internet usage, has heightened the need for data storage and processing, further propelling the demand for data center racks. Collaborations between Nigerian data center providers and technology companies are enhancing service offerings, with initiatives like the Cloud Computing Policy promoting the spread of cloud services and boosting data center utilization.

The market is characterized by a preference for full racks due to space constraints and the need to manage large volumes of data generated by businesses. The introduction of electronic payments and the growth of sectors like e-commerce and fintech are contributing to the increased use of data center racks. Despite the relatively low competition, major players such as Vertiv Group Corp., Dell Inc., and Schneider Electric SE are expanding their presence through strategic collaborations. The construction of new data centers, such as Rack Centre's facility in Lagos and WIOCC's Open Access Data Centres, is expected to meet the rising demand for racks, underscoring the market's growth potential.

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Nigeria Data Center Rack Market Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Increased Migration to Cloud-based Business Operations

      2. 1.2.2 Internet Adoption and Information Technology Services to Boost Market Progress

    3. 1.3 Market Restraints

      1. 1.3.1 Low Availability of Resources

    4. 1.4 Value Chain / Supply Chain Analysis

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

      1. 1.5.1 Bargaining Power of Buyers/Consumers

      2. 1.5.2 Bargaining Power of Suppliers

      3. 1.5.3 Threat of New Entrants

      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 Rack Size

      1. 2.1.1 Quarter Rack

      2. 2.1.2 Half Rack

      3. 2.1.3 Full Rack

    2. 2.2 End-User

      1. 2.2.1 IT & Telecommunication

      2. 2.2.2 BFSI

      3. 2.2.3 Government

      4. 2.2.4 Media & Entertainment

      5. 2.2.5 Other End-Users

Nigeria Data Center Rack Market Market Size FAQs

The Nigeria Data Center Rack Market size is expected to reach 13.66 thousand units in 2024 and grow at a CAGR of 23.20% to reach 47.77 thousand units by 2030.

In 2024, the Nigeria Data Center Rack Market size is expected to reach 13.66 thousand units.

Nigeria Data Center Rack Market Report Snapshots

Nigeria Data Center Rack Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2030)