Nigeria Leads West Africa in Data Centre Expansion

Nigeria is becoming a significant force in West Africa's data centre market, as highlighted in Knight Frank's Africa Report 2026/27. The report identifies Nigeria as the leading data centre market in the region, supported by a large enterprise base, subsea cable connectivity, and a focus on local data hosting.

Nigeria's third-party core-and-shell data centre capacity is estimated at about 66 megawatts (MW) as of late 2024, with projections indicating an increase to over 218 MW by 2030. Lagos is expected to remain the primary hub due to its concentration of financial institutions and technology firms.

The Central Bank of Nigeria has mandated that banks and fintech companies localize customer data by January 2027, which may enhance demand for domestic data storage. However, industry stakeholders express concerns regarding compliance costs and the need for reliable electricity.

Experts emphasize that uninterrupted power and advanced infrastructure are crucial for maximizing Nigeria's potential as a regional data hub.