The Nigerian data center rack market reached a volume of over 9,000 units in the previous year, and it is further projected to register a CAGR of 23.2% during the forecast period. 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.
The Nigerian Data center racks market is relatively low in terms of competition and has a few players in the market, such as Vertiv Group Corp., Dell Inc., Eaton Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, and nVent Electric PLC. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability. The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers.
In April 2023, Rack Centre is planning to build a 12MW data center in the Ikeja area of Lagos, Nigeria. The new facility will be known as the Rack Centre LGS 2 and will be situated on a 20,000 sqm (215,280 sq ft) greenfield site.
In December 2022, WIOCC launched a data center in Lagos through its Open Access Data Centres platform. The facility was planned to support up to 20MW of site load across more than 7,200 sqm (77,500 sq ft) of white space, enough for 3,200 racks, and can be scaled up to 40MW.
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