Nigeria's Data Center Sector to Attract $2 Billion Investment

Nigeria's data center ecosystem is poised for significant growth with a $2 billion investment anticipated by 2027. OADC, led by CEO Ayotunde Coker, has committed $240 million to establish a 24-megawatt hyperscale data center in Lekki.

The Central Bank of Nigeria (CBN) has issued a directive mandating financial institutions to host their data locally by January 1, 2027, to ensure compliance and enhance data security. Coker expressed concerns regarding the existing infrastructure's capacity to meet compliance demands, emphasizing the need for high-quality data centers.

The CBN will closely monitor compliance and impose sanctions on defaulting institutions. Major players in the market include Equinix and Rack Centre, with projections indicating a growth in data center capacity from 136.7 megawatts in 2025 to 279.4 megawatts by 2030, reflecting a compound annual growth rate of 15 percent.

The transition to local data hosting raises security concerns for fintech operators, necessitating robust physical security measures.