Nigeria Data Centre Market Outlook to 2027

The report provides a comprehensive analysis of the potential of the data center industry in Nigeria. The report covers an overview and genesis of the industry, and market size in terms of revenue.

Its market segmentations include by vertical, by type of Co-location, by end-user; growth enablers and drivers; challenges and bottlenecks; trends driving adoption trends; regulatory framework; end-user analysis, industry analysis, competitive landscape including competition scenario and market shares of major players. The report concludes with future market projections of each market segmentation and analyst recommendations.

Market Overview:

According to publisher estimates, the Nigeria data center market - which is at ~$131.6Mn in 2022 - is forecasted to grow further into a ~$ 288.8 Mn by 2027, owing to Launch of 5G, and increasing internet penetration

Nigeria is promoting a fully digital economy by 2030 through the National Digital Economy Policy and Strategy (NDEPS 2020-2030).

The growing fintech and startup ecosystem needs dynamic data centers to survive. So far, many of these companies host their data offshore, as reliability and scalability concerns have forced companies to look elsewhere.

However, as the attention of international data center operators shifts to the country, the sector has become more robust and reliant on local hosting.

Key Trends by Market Segment:

By Vertical: The co-location accounted for the highest market share of over half of Colocation services are a major revenue contributor in the data center market in Nigeria. More and more businesses are opting for colocation because of the convenience, security of their IT infrastructure and less power cuts.

By Type of Co-location: Retail by type of co-location accounted for the highest market share. This is due to dominance of small and medium businesses in Nigeria looking forth to retail colocation spaces.

Competitive Landscape

The Nigeria Data Center Industry is consolidated with top players holding more than 70% market share. The players compete with each other on the basis of its, number of data centers, IT load, gross floor area, total white space, number of racks, geographical presence, etc.

Future Outlook

The Nigerian car rental market is projected to witness a CAGR of ~17.0% between 2022 to 2027. Data Centre market is predicted to expand owing to the internet penetration, increase in investment and government initiatives.

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