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Nigeria Data Center Server Market Size (2024 - 2029)

The Nigeria Data Center Server Market is poised for significant growth, driven by increasing demand for cloud computing among small and medium-sized enterprises, stringent government regulations for local data security, and rising investments from domestic players. This expansion is reflected in the market's projected growth trajectory over the forecast period, highlighting a robust increase in market size. The development of IT load capacity, raised floor space, and the installation of racks are key components of this growth, with Lagos anticipated to be a central hub. Additionally, the enhancement of connectivity through submarine cable systems further supports the market's expansion.

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Market Size of Nigeria Data Center Server Industry

Nigeria Data Center Server Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 198.40 Million
Market Size (2029) USD 492.70 Million
CAGR (2024 - 2029) 20.30 %
Market Concentration Medium

Major Players

Nigeria Data Center Server Market Major Players

*Disclaimer: Major Players sorted in no particular order

Nigeria Data Center Server Market Analysis

The Nigeria Data Center Server Market size is estimated at USD 198.40 million in 2024, and is expected to reach USD 492.70 million by 2029, growing at a CAGR of 20.30% during the forecast period (2024-2029).

The Nigerian data center server market reached a value of USD 194.1 million in the previous years, and it is further projected to register a CAGR of 20.3% during the forecast period. The increasing demand for cloud computing among small and medium-sized enterprises (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 Nigerian data center server 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: Close to eight submarine cable systems connect Nigeria; many are under construction.

Nigeria Data Center Server Industry Segmentation

A data center server is a high-capacity computer without peripherals like monitors and keyboards. It is a hardware unit installed inside a rack, with a central processing unit (CPU), storage, and other electrical and networking equipment. It makes them powerful computers that deliver applications, services, and data to end-user devices.

The Nigerian data center server market is segmented by form factor (blade server, rack server, and tower server) and end user (IT and telecommunication, BFSI, government, media and entertainment, and other end users). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.

Form Factor
Blade Server
Rack Server
Tower Server
End User
IT & Telecommunication
BFSI
Government
Media & Entertainment
Other End Users
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Nigeria Data Center Server Market Size Summary

The Nigeria data center server market is experiencing significant growth, driven by the increasing demand for cloud computing services, particularly among small and medium-sized enterprises. Government regulations aimed at enhancing local data security and the rising investments from domestic players are further propelling this market expansion. The adoption of cloud-based services is fostering the growth of both retail and wholesale colocation services, which in turn is boosting the demand for data center space and racks. The proliferation of hybrid cloud service providers and the need for big data integration are also contributing to the increased utilization of data centers. Collaborations between Nigerian data center providers and local as well as international technology companies are enhancing the range of services offered, supporting the market's growth trajectory.

The market is characterized by the adoption of advanced server technologies, such as blade servers, which offer benefits like space efficiency, modularity, and energy efficiency. Major players in the market, including Dell, Hewlett Packard Enterprise, Cisco, and Lenovo, are focusing on expanding their offerings to meet the growing demands of businesses adopting cloud computing, artificial intelligence, and IT services. The construction of new data centers and the introduction of next-generation servers are expected to further drive market growth. Additionally, the increasing internet penetration and fiber connectivity in Nigeria are anticipated to bolster the digital economy, necessitating enhanced data storage and processing capabilities. This trend is expected to sustain the demand for data center servers in the coming years.

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Nigeria Data Center Server Market Size - Table of Contents

  1. 1. Market Dynamics

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 The Increasing Investments for the Expansion of 5G Network by Operators

      2. 1.2.2 Fiber Connectivity Network Expansion in the Country

    3. 1.3 Market Restraints

      1. 1.3.1 Increasing Cybersecurity Threats and Ransomware Attacks

    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 the COVID-19 Impact

  2. 2. MARKET SEGMENTATION

    1. 2.1 Form Factor

      1. 2.1.1 Blade Server

      2. 2.1.2 Rack Server

      3. 2.1.3 Tower Server

    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 Server Market Size FAQs

The Nigeria Data Center Server Market size is expected to reach USD 198.40 million in 2024 and grow at a CAGR of 20.30% to reach USD 492.70 million by 2029.

In 2024, the Nigeria Data Center Server Market size is expected to reach USD 198.40 million.

Nigeria Data Center Server Market Report Snapshots

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