Nigeria Data Center Server Market Trends

Market Trends of Nigeria Data Center Server Industry

The Cloud Segment is Expected To Hold A Major Share In The Market

• The increasing adoption of cloud-based services is driving the expansion of retail and wholesale colocation services in Nigeria, resulting in increased demand for space in data centers and, consequently, the need for more racks within data centers.
• Cloud services are growing in popularity in Nigeria. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
• Additionally, Nigerian data center providers are gradually collaborating with local and international technology companies to offer their customers a wide range of services. For example, Galaxy Backbone has completed the construction of approximately 2.2 petabytes of Tier 4 data centers to provide cloud and disaster recovery services.
• With the rise of the digital economy and increased Internet usage in Nigeria, the need for data storage and processing has increased. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
• With government initiatives such as the Cloud Computing Policy (2019), which aims to promote the spread of cloud services in the country, the use of data centers to store large amounts of data has increased with the demand.

Blade Servers To Grow At A Faster Pace In The Coming Years

• The type of server designed to be in a data center is blade servers. These servers share a common chassis or enclosure, making them thinner and more compact. Blade servers' main features and benefits are space efficiency, modularity, reduced cable fragmentation, efficient cooling, centralized management, frequency availability, and energy efficiency.
• Single or multiple server blades can be inserted or removed without distressing another running system. It reduces hardware costs, likely enticing industry players to adopt the technology, fueling market growth. Additionally, each server blade lacks a distinct infrastructure and chassis, so the product is cheaper than other solutions.
• The top companies focus on blade servers in data centers to cater to end-user needs. The prominent companies that manufacture blade servers in Nigeria include Dell (PowerEdge M Series), HPE (ProLiant BL Series), Cisco (UCS Blade Servers), and Lenovo (ThinkSystem Blade Servers).
• The growing adoption of technologies such as cloud computing, artificial intelligence (AI), and IT services by businesses is propelling the use of servers in data centers. The increased demand for streaming solutions and hyperscale data centers drives this sector. Hyperscale computing, considered cost-effective in enabling applications for large amounts of data, relies on the highly scalable server architecture and virtual networks that are becoming increasingly popular.
• In the future, the growing internet penetration and fiber connectivity will push the country digitally, which could propel Nigeria's digital economy. For instance, the evolution of healthcare would focus on reengineering clinical care and operations around digital health and the pervasive, real-time use of data and advanced analytics to achieve these goals. Such achievements would require storing a large amount of data, driving the need for data center blade servers during the forecast period.