Nigeria Data Center Storage - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)

The Nigeria Data Center Storage Market size is estimated at USD 90.40 million in 2024, and is expected to reach USD 297.60 million by 2029, growing at a CAGR of 23.5% during the forecast period (2024-2029).

As one of the biggest economies in Africa with one of the largest youth populations in the world, Nigeria is well-positioned to develop a strong digital economy. The Nigerian government's proactive role in shaping the digital landscape is pivotal. Policy frameworks like the National Digital Economy Policy and Strategy have been launched to harness the full potential of the digital economy. This has increased the demand for data centers in the country, which is catering to the demand for storage solutions.

Key Highlights

• Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigerian data center market is expected to reach 220 MW by 2029.
• Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.6 million sq. ft by 2029.
• Planned Racks: The country's total number of racks to be installed is expected to reach 32,000 units by 2029. Lagos is expected to house the maximum number of racks by 2029.
• Planned Submarine Cables: There are close to eight submarine cable systems connecting Nigeria, and many are under construction.

Nigeria Data Center Storage Market Trends

IT and Telecom to Hold Significant Share

• The arrival of 5G promises a major increase in speeds, ultra-low latency, and unforeseen network capabilities, paving the way for groundbreaking applications with real-time connectivity across everything.
• 5G and high-speed flash storage are enabling emerging IoT use cases, leading to major market demand. The introduction of the 5G network in certain parts of the country has boosted the networking and storage capabilities of Nigeria.
• In September 2022, MTN Nigeria and Ericsson launched the first phase of 5G services in parts of Nigeria and Lagos. These 5G services are expected to bolster the development of new-age technologies in Nigeria, including AR, VR, IoT, AI, and others, which would create considerable demand for colocation services by enterprises.
• 5G boasts nearly seven times faster throughput than 4G, reaching speeds of 10 Gbs compared to 1.45 Gbs. This leap complements the significant I/O throughput enabled by enterprise-grade technologies like NVMe and SSDs in servers and storage appliances. The demand for NVMe is increasing in SSD servers and storage appliances, which is expected to drive the market's growth during the forecast period.
• Furthermore, the need to respond to evolving market standards in a compressed time-to-market window has resulted in the widespread use of field-programmable gate arrays (FPGAs) and complementary system-on-chip devices (SoCs). These devices can be configured by diverse types of memories, including flash.

All-Flash Storage to Witness Significant Growth

• The adoption of flash storage is highly dependent on its benefits, such as power consumption, increasing performance, and ease of maintenance, which have been boosting the adoption rate. The increase in hybrid cloud service providers creates a major demand for all-flash storage.
• The indirect impact of the new data center facilities for cloud-based services provided by companies continues to boost the demand. It is expected to attract more opportunities in the future. In October 2022, Google activated its local cloud region for Nigeria to offer better cloud-based security to public entities and government ministries.
• Growing investments in start-ups such as FinTech and e-commerce using big data analytics and IoT applications are expected to increase the demand for all-flash storage in the Nigerian data center market. In 2020, the Nigerian government announced the plan to establish the Centre for Artificial Intelligence and Robotics in Nigeria (CFAIR) to facilitate emerging technologies such as ICT security and networking.
• Big data storage is a compute-and-storage architecture that one can use to collect and manage huge-scale datasets and perform real-time data analyses. With big data and analytics, the data access and processing patterns demand a higher storage performance, along with increased concurrency. Furthermore, SCMs (storage-class memory) are likely to be deployed as a caching layer for an all-flash array. These new developments are expected to offer optimized workload performance whilst lowering storage costs.

Nigeria Data Center Storage Industry Overview

The Nigerian data center storage market is consolidated among the players and has gained a competitive edge in recent years. Some of the major players are Dell Inc., Hewlett Packard Enterprise, and Lenovo Group Limited. These players, with a prominent market share, focus on expanding their customer base across the region. They leverage strategic collaborative initiatives to increase their market share and profitability.

• For instance, in March 2024, Seagate launched the Exos X24 CMR 7,200 rpm Helium SATA and SAS 3.5-inch 24 TB HDD with 10 platters. They are designed for maximum storage capacity and the highest rack-space efficiency. Exos X24 is purpose-built for hyperscale with performance and proven technology. The helium 3.5-inch 7,200 rpm nearline drive offers both SATA and SAS interfaces and delivers enhanced caching that performs up to 3x better than solutions that only utilize read or write caching.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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