Nigeria Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

Nigeria Data Center Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2029

The Nigeria Data Center Market is projected to register a CAGR of 23.24%

Key Highlights

• IT Load Capacity: The IT load capacity of the data center market will have steady growth and is expected to reach 226.7 MW by 2029.
• Raised Floor Space: The total raised floor area of the country is expected to increase to 0.6 million sq. ft by 2029.
• Installed Racks: The number of installed racks is expected to reach 32,389 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
• DC Facilities: There are nine colocation data center facilities in Nigeria. Lagos is the major hotspot in the country. The region has a cable landing station for multiple major fiber cables in Nigeria, offering technological and industrial accessibility and faster networking speeds.
• Leading Market Player: Africa Data Centers (Cassava Technologies) was the leading player in the Nigerian market in the historical period and rolled out four data center facilities with a capacity of 20.7 MW.

Nigeria Data Center Market Trends

Tier 3 is the largest Tier Type

• As the data center market in Nigeria is still in its initial phase, service providers target to comply with Tier 3 norms to introduce Tier 3 colocation facilities in the region. Tier 3 facilities accounted for an IT load capacity of 51.44 MW in 2022 and are expected to register a CAGR of 23.42% to reach 224.44 MW by 2029.
• To make the facilities future-ready, Tier 3 certifications that offer reliable redundancy and other operational criteria help serve the long-term growth in the market. These facilities are expected to facilitate increasing demand in the region. As of January 2022, there were more than 100 million internet users in the country, with an internet penetration rate of 51%.
• Nigeria does not feature any Tier 1 and Tier 2 facilities, about the new and more capable Tier 3 facilities in the region. Similarly, with the network advancements and development for faster networks in the region, including the increasing infrastructure for 2G and 5G networks, the country should witness Tier 4 facilities too to accommodating the demand for deploying cloud-native new technologies like AI, ML, and IoT in the forecast period.
• The market is getting placed with Tier 4 facilities construction and not contributing completely to the market. This provides the overall scenario for future developments. In September 2022, Galaxy Backbone completed the construction of its Tier 4 data center facility, which would account for about 2.2 petabytes to provide cloud and disaster recovery services.

Nigeria Data Center Industry Overview

The Nigeria Data Center Market is fairly consolidated, with the top five companies occupying 83.39%. The major players in this market are Digital Realty (Medallion Communications Ltd.), MDXi (MainOne by Equinix), MTN Nigeria Communications Ltd, Rack Centre Limited and WIOCC (Open Access Data Centres) (sorted alphabetically).

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support