Experts have said Nigeria Data Center Market, investment and growth between 2021 and 2026 is expected to reach $218 million in 2026, growing at a Compound Annual Growth Rate (CAGR) of 17 per cent during the period.
Investments in the Nigerian data center market are majorly driven by factors such as digitalization of advanced technology, the presence of major operators, internet penetration, and government initiatives, according to Arizton Advisory and Intelligence.
Nigeria hosts 11 existing and will witness the deployment of nine upcoming facilities spread across two cities, including Lagos and Abuja.
The report published by PRNewswire, says that the shift of industry sectors such as BFSI, education, retail, manufacturing, and others toward modern technologies such as cloud and big data is likely to aid the growth of the market during the forecast period.
In December 2020, Nigeria launched its “Solar Power Naija” project, focusing on 5 million solar connections by way of solar home installations as well as mini grids.
With improved digital infrastructure and connectivity, an expected increase in colocation activities from cloud service providers is likely to boost the development of local data centers, significantly boosting the colocation market in Nigeria.
By 2025, the government plans to increase the supply share of renewable electricity to 10 per cent of the overall electricity generated in Nigeria.
Africa is an emerging data center market, and it witnessed around 15 data center investments in 2020. The growth in the adoption of IoT and big data analytics services will result in the rapid acceleration of data center development in the Africa data center market.