Lagos, home to more than 20 million inhabitants, is reinforcing its role as Nigeria’s tech hub by gradually increasing its data center presence, which aims to integrate seamlessly into Africa’s growing digital infrastructure ecosystem.

Lagos, Nigeria's economic center, houses the majority of the nation's 16 functional data centers, such as those operated by Google, MDXi (MainOne by Equinix), and Africa Data Centers. This places West Africa in a broader landscape with more than 100 facilities across the continent providing approximately 308 MW of capacity, with South Africa leading this development.

In 2023, Nigeria’s data center market was estimated at $648.4 million and is forecasted to surge to $972.53 million by 2032, as reported by Credence Research, an international market analysis and advisory company. This expansion is largely fueled by Lagos, which benefits from increasing requirements for co-location and cloud solutions.

The city expanded its capabilities last week with the opening of Rack Centre’s LGS2, which boasts an impressive 12 MW facility—a first-of-its-kind in Western Africa. This state-of-the-art center was built for optimal energy efficiency and scalability to cater specifically to businesses, cloud service providers, and financial institutions.

Although South Africa continues to lead in data capabilities across Africa, Lagos is now being recognized as a significant participant, according to industry experts. The trend has been reinforced by Open Access Data Centres, which is affiliated with the WIOCC Group, pledging $240 million last month towards developing 24 MW by 2027. This initiative aims to capitalize on Lagos' strong economy.

"The new Rack Centre signifies a significant step towards our collective aim of transforming Lagos into a smart, internationally competitive digital center," stated Governor Babajide Sanwo-Olu through his representative, Sam Egube, the Deputy Chief of Staff.

"Through our investment in cutting-edge technology, we are drawing global investors who view Lagos not only as a city but also as a center for innovation and digital transformation," Sanwo-Olu stated.

Currently, Lagos is experiencing the building of four additional data centers and is significantly investing in digital infrastructure through the creation of a fiber-optic network that stretches roughly 6,800 kilometers throughout the region.

The initial stage of this large-scale initiative, which spans 3,500 kilometers, has already been finished with the aim of boosting internet bandwidth across Lagos.

Now that the new Rack Centre facility is up and running, the firm’s data center capacity has multiplied eight times over, reinforcing its status as a premier digital infrastructure hub in Sub-Saharan Africa.

"It should be highlighted that Rack Centre stands as the sole data center situated on Lagos Mainland, and its closeness to essential governmental facilities," stated Maher Jamalkani, the chairman of Rack Centre, in an announcement provided to The PUNCH.

The chairman disclosed that the facility offers the necessary connectivity which ensures Alausa’s daily communication and cloud services are both efficient and dependable.

"Rack Centre’s infrastructure guarantees quick and secure transmission of each data packet, and our function as a digital switching hub will expand further, linking individuals, enterprises, and concepts to foster an exceptionally progressive society," he said additionally.

According to Rack Centre CEO Lars Johannisson, this recently inaugurated facility represents a crucial step forward in Nigeria’s journey towards digital transformation.

"The facility stands as a vital component in the expanding digital framework in Lagos, Nigeria, positioning Lagos at the leading edge of data center technology, innovation, and environment," stated the CEO.

By the close of 2025, Lagos is expected to contribute an additional 180 megawatts of power capacity to Nigeria’s data center sector, representing approximately 70 percent of the country’s anticipated increase in capacity.

Nevertheless, with only 70 MW currently available, the state is significantly below the required 600 MW needed to satisfy both local and international demands—an shortfall highlighted by Geniserve’s CEO, Gbenga Adegbiji. He states this deficiency discourages major players such as Microsoft and Amazon from extensively launching their cloud services in the area.

We require additional data centers positioned close to strong network infrastructures," he stated to The PUNCH. "In the absence of connectivity, a data center merely becomes a storage facility.

Provided by SyndiGate Media Inc. Syndigate.info ).