Report Shows Nigeria’s Data Centre Market Will Hit $288m By 2027
Nigeria’s data centre market is projected to hit a valuation of $288.8m by 2027. In a report by Research and Markets titled Nigeria Data Centre Market Outlook to 2027, it noted that Nigeria’s data centre market reached an estimated value of $131.6m in 2022, and by 2027, the market is projected to have experienced an approximate 220 per cent growth.
The Federal Government had expressed plans for the nation’s digital future with the National Digital Economy Policy and Strategy (NDEPS 2020-2030). Nigeria seek to transform into a fully digital economy by 2030, thereby driving the need for robust data centre infrastructure.
According to the report, the impressive growth of the Nigerian data centre market was attributed to the burgeoning fintech and startup ecosystem.
It said, “The thriving fintech and startup ecosystem in Nigeria is also contributing to the demand for dynamic data centres. Previously, many companies hosted their data offshore due to concerns about reliability and scalability. However, as international data centre operators turn their attention to Nigeria, the sector has become more resilient and reliant on local hosting."
The growth of data centres in Nigeria can be noted by the sheer amount of big digital infrastructure companies making their entries into the market. These include companies like Equinix and NTT Data.
It further noted that the co-location trend will continue to grow and become a significant revenue driver in Nigeria’s data centre market, accounting for more than half of the market share. Co-location is explained as when more than one data-heavy organisation decide to locate their data in the same location.
According to the report, the market is characterised by consolidation, with top players holding over 70 per cent of the market share. Competition among these players is based on various factors, including the number of data centres, IT load, gross floor area, total white space, number of racks, and geographical presence.
It said, “As Nigeria continues to experience increased Internet penetration, higher investments, and government initiatives, the data centre market is poised for substantial expansion in the coming years. This growth reflects the country’s commitment to embracing digital transformation and the critical role data centres play in achieving that vision."