Lagos now home to 14 data centres
Federal and state governments have reassured investors that Nigeria will become more business-friendly in line with the Renewed Agenda of President Bola Tinubu.
The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, made this known yesterday at the unveiling of MTN Tier-3 data centre named after the late former Group/Chief Executive Officer, Sifiso Dabengwa, in Ikeja, Lagos.
The Dabengwa Data Centre will, in the long run, be a 9MW capacity infrastructure to be deployed in two phases. Phase 1 is a 4.5MW infrastructure, which started operations yesterday.
Tijani described the centre as MTN’s bold contribution towards Nigeria with a focus on building resilience and opportunities for the local economy, saying the infrastructure will enable data sovereignty.
He said the investment will aid FG’s 90,000km fibre deployment, 7000 rural base stations deployment, the 3MTT programme and aid coverage of the about 20 million Nigerians that are currently offline.
While assuring of an improved business climate, the minister said the investment offers “our young people the opportunity to build and scale from Nigeria to the world. This investment will cement Nigeria as the digital backbone and hub of West Africa.”
According to him, the facility is a testament to what is possible between the public and private enterprises, stressing that it is also crucial to Nigeria’s $1 trillion economy target.
On his part, the Lagos State Governor, Babajide Sanwo-Olu, said the data centre investment is a significant step towards enthroning a robust economy and digital infrastructure.
Represented by the Secretary to the State Government, Mrs. Bimbola Salu-Hundeyin, the Governor said the new infrastructure investment reinforces the strategic importance of Lagos to investors and the region as a whole.
Checks by The Guardian showed that Lagos, before the unveiling of the Dabengwa centre, hosts 13 of Nigeria’s 16 operational data centres, ranking third in Africa after Johannesburg (31) and Nairobi (15).
According to Arizton Advisory & Intelligence, Nigeria’s 16 operational data centres (including colocation facilities) will be valued at $278 million in 2024, with a combined load capacity of 136.7MW. By 2030, the market is projected to grow to $671 million with a load capacity of 279.4 MW.
Further, SanwoOlu, who said data is the new oil and cloud technology that follows it, stressed that MTN has raised the bar for businesses, individuals, startups and multinationals.
“Lagos is best for MTN’s investment. We shall collaborate for success and increased mutual benefits. There will be a more business-friendly environment,” he stated.
In his welcome address, MTN Nigeria CEO, Karl Toriola, highlighted the centre’s importance in improving artificial intelligence, cloud computing, and enterprise solutions.
Toriola, who disclosed that about $150 million has gone into Phase 1 of the investment, which boasts 4.5MW capacity, also emphasised that the facility’s pay-as-you-use model, with services priced in naira, is a crucial advantage for companies looking to cut expenses and avoid foreign exchange challenges.
The facility is Nigeria’s largest prefabricated modular data centre, with 96 containerised modules and 1,500 racks. It is the largest in West Africa and in total. Modular and distributed across three floors.
MTN Nigeria Chief Enterprise Business Officer, Lynda Saint-Nwafor, disclosed on Monday that Phase 1 of the investment gulped over $100 million, with an extra $20 million for cloud integration.
