Nigeria Data Center Market Size by Investment to Reach of USD 218 Million by 2026 - Arizton

  • Aug 16, 2021
  • PR Newswire

CHICAGO, Aug. 16, 2021 /PRNewswire/ -- In-depth analysis and data-driven insights on the impact of COVID-19 included in this Nigeria data center market report.

The Nigeria data center market size is expected to grow at a CAGR of over 17% during the period 2020−2026. The Nigeria data center market research report includes market size in terms of area, investment, power capacity, and colocation revenues. Get insights on 11 existing and 9 upcoming facilities spread across 2 cities, including Lagos and Abuja.

1. Nigeria is one of the fastest-growing data center markets in Africa. The growth in population and internet users, rise in digitalization, and government initiatives will drive data center opportunities in the country.

2. Lagos, the capital city, is the major data center hub in Nigeria, with 10 data center facilities contributing to over 90% of the existing power capacity in the country. Low labor and land costs, and the increased adoption of advanced technology make the city an attractive investment location.

3. 21st Century Technology (21CTL) is building an edge hyperscale data center in Nigeria, with future buildouts planned in Apapa, Ikoyi, Victoria Island, Maryland, and Ikeja. MainOne and Rack Centre are also expanding their facilities in the country.

4. New entrants have been witnessed in the Nigeria data center market. For instance, Africa Data Centres is a new entrant that is currently building a facility in Lagos. Teraco Data Environments also plans to enter the Nigeria market in the near future.

5. Migration from on-premise data centers in Nigeria to cloud and colocation data centers is expected during the forecast period, with a higher dependency on managed service offerings compared to stand-alone colocation.

6. Nigeria's strategic location is beneficial for the generation of renewable energy, especially solar power, which the country expects to harness in the coming years. By 2025, electricity generated from renewables is expected to form 10% of the overall electricity generated in Nigeria.

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The National Information Technology Development Agency (NITDA) has released the Nigeria Cloud Computing Policy (NCCP) with the goal of achieving around 30% increase in the cloud adoption by 2024. The revenue from public cloud expects to cross over USD 400 million in 2021, which is likely to reach over USD 1.5 billion by 2026, with SaaS emerging as the leading revenue contributing over USD 170 million in 2021. Descasio, Layer3, MDX-i, VELVOT, Outcess are the major local cloud providers in Nigeria. Also, global cloud providers such as Microsoft Azure, Google Cloud, Huawei Technologies, Oracle, and IBM have a presence in the country. Several sectors such as BFSI, healthcare, education, hospitality, government, and transport have migrated to the cloud platform. Financial companies in the country adopt and migrate to Microsoft Azure. For instance, The Central Bank of Nigeria (CBN) has adopted cloud for some of its workloads. Several investors such as Teraco Data Environments, Rack Centre, Africa Data Centres operate or build hyperscale data center campuses in Nigeria. Therefore, the availability of cloud service providers in the country is likely to attract investors.

Nigeria Data Center Market - Existing Vs. Upcoming Data Centers

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