That contrast was revealed in a new report, which shows the continent is building fast, but still lagging.

The study, Data Centres in Africa 2026, says Africa’s total installed capacity is expected to triple to about 1.2 gigawatts (GW) of IT load by 2030.

But then, this growth will track global expansion rather than close the gap. The United States alone hosts about 45% of the world’s data centres.

Globally, the data centre market was valued at $243 billion in 2025 and is projected to double by 2032.

Artificial intelligence is a primary driver. McKinsey estimates AI training and inference could triple global demand for data centre capacity by 2030, with 70% of new demand linked to AI workloads.

In comparison, Africa’s footprint is small. The continent has between 220 and 230 facilities spread across 38 countries.

Capacity is concentrated in South Africa, Nigeria, Kenya and Egypt. Most African data is still stored abroad, mainly in Europe and North America.

That reliance brings the risks. Data hosted overseas falls under foreign laws. The report points to the U.S. CLOUD Act, which allows American authorities to compel companies under U.S. jurisdiction to hand over data, regardless of where it is physically stored.

This leaves governments and businesses in Africa asking who really controls their data and whether they truly have authority over it.

More than 40 African countries have enacted data protection laws, and 19 have ratified the Malabo Convention on cybersecurity and data protection.

However, enforcement capacity usually lags behind legislation. Investors now see regulatory clarity as an important factor in deciding where to build.

Dr Ayotunde Coker, CEO of Open Access Data Centres, said: “Africa’s path to data sovereignty depends on building local processing power, sustainable energy use, and AI capacity that reflects the continent’s own priorities and realities.”

AI is changing the direction. In April 2025, African states adopted the Africa Declaration on Artificial Intelligence in Kigali.

The declaration commits $60 billion towards continental AI ambitions and led to the creation of an Africa AI Council made up of seven ICT ministers and eight independent members.

So far, 15 African countries have adopted a national AI strategy or policy. Still, infrastructure is not satisfactory.

According to the report, outside South Africa, only about one-third of built data centre capacity is fully utilised. Even in South Africa, 74% of capacity is fitted out and in use.

Operators say they are building ahead of demand, planning on 10- to 20-year horizons.

The demand side is still uneven. While 47% of Africans are mobile subscribers, only 28% use mobile internet.

In some low-income countries, internet access can take up to 26.4% of average monthly income. The physical coverage gap has narrowed to 9%, but the usage gap stands at 64%.

At the same time, data consumption per smartphone in sub-Saharan Africa averages about 6.7GB per month, far below the global average of 21.6GB.

The International Finance Corporation estimates that doubling undersea cable capacity could cut bandwidth prices by 30 to 50%. Even moderate price drops could push usage steeply higher.

Connectivity is expanding. Africa’s terrestrial fibre network reached about 1.3 million kilometres in 2025, up from 1 million kilometres in 2019.

The World Bank approved $500 million in late 2025 to deploy a further 90,000 kilometres of fibre. Egypt now connects to more than 19 subsea cable systems, Djibouti to 12, and South Africa to 11.

However, access to computing power is limited. Latency from African users to major cloud regions abroad usually exceeds 70 to 100 milliseconds, compared with less than 20 milliseconds in mature markets.

Where local cloud regions exist, such as in South Africa, median latency falls to between 35 and 45 milliseconds.

The report describes this as a “compute divide”. It argues that competitiveness will depend more on where computing capacity sits and how close it is to users, not just connectivity,

Investment is flowing in response. Hyperscalers and technology investors are estimated to have committed between $2.5 billion and $4 billion to African data centres in recent years.

Development finance institutions have put in an estimated $1.5 billion to $2 billion since 2016. Commercial banks, private equity firms and sovereign investors have also stepped up.

Private equity-backed platforms such as Raxio and Actis-backed Digital Realty have pursued regional expansion. Telecom-linked operators including Africa Data Centres, Nxtra by Airtel and STELLARIX are carving out carrier-neutral facilities while leveraging existing fibre networks.

Governments are building national facilities as well. Nigeria’s Galaxy Backbone, Ghana’s National Data Centre, Rwanda’s National Data Centre and state-backed projects in Ethiopia and Togo aim to anchor government cloud services and sensitive public data locally.

The economics are demanding, with building a standard Tier III facility globally now costing about $11.3 million per megawatt.

For AI-ready sites, tenant fit-out costs alone can reach $15 million to $25 million per megawatt. In Africa, operators face additional expenses linked to power back-up systems and imported equipment, with generators sometimes taking up to 18 months to deliver.

Occupancy can also take time. The report says it may take up to eight years for a new African data centre to reach 85% occupancy.

Yashnath Issur, CEO of Nxtra by Airtel Africa, said: “Developing large-scale infrastructure, such as a 40-MW data centre, fundamentally transforms the economic model of the industry.

“Beyond unlocking significant economies of scale in both construction and operations, this level of capacity also strengthens our position when negotiating long-term power purchase agreements. The result is greater cost predictability, improved energy security, and a more resilient foundation for sustainable growth.”

Talent is another pressure point, with Uptime Institute projecting the global industry will require 2.5 million full-time staff by the end of 2025.

In Africa, 39% of operators quote retention of skilled staff as their main human resources challenge. In Nigeria, that figure reaches 67%.

To respond, experts launched the Data Centre Talent Project for Africa in 2025. The three-month programme aims to enrol more than 100 engineering graduates in its pilot phase across Nigeria, Kenya and South Africa, with at least 30 job placements in the first cycle.

Despite the challenges, the report concludes that Africa’s digital economy could reach $1.5 trillion by 2030.

For that to happen, Africa data centre capacity will need to move from scarce infrastructure to becoming a reliable, local backbone for cloud services, AI and public systems.

And for businesses, this gap means higher expenses, slower access to cloud services and limited ability to scale competitively.

Today, Open Access Data Centres (OADC), a WIOCC Group company, launched Open Access Fabric (OAfabric) in Nigeria (OADC Lagos) and the Democratic Republic of Congo, DRC (OADC Texaf – Kinshasa), to leapfrog these limitations and position Nigeria as Africa’s digital nerve centre.

With over 107 million internet users, Nigeria represents the continent’s largest digital market, but enterprises have long had challenges with high latency, expensive transit, and inconsistent local content access. 

The game-changing interconnection platform, OAfabric directly addresses these challenges, providing secure, low-latency connections, direct peering with global cloud providers, and integration with leading African IXPs, including IXPN in Nigeria and KINIX in the DRC.

Speaking at the launch, Dr Ayotunde Coker, chief executive officer of OADC, said “We designed OAfabric around the real challenges African businesses face. It is about solving problems – reducing the cost to compute, improving performance, unlocking access to cloud and content, and creating an environment where companies can scale with confidence while accelerating time to market.”

OAfabric is engineered to scale from 1Gbps to 100Gbps, supporting hybrid colocation architectures, AI workloads, and data-intensive applications. Traditionally, enterprises had to rely on the open internet, risking security breaches and inconsistent performance. Coker highlighted the platform’s protective advantage:

“Without OAfabric, if you want to go to the cloud, you basically have to go to the open internet. All of us understand the disadvantages of pushing your content into the open internet. Companies now have to start building layers of security, all the years of security. 

“But with OAfabric, it is a secured connection, structural cable connection from here all the way into the cloud environment, irrespective of where you are. So you are guaranteed that literally, for someone to hack, he has to use a source and come back in. It’s extremely secure connectivity.”

Resilient, Reliable, and Rapid

The platform’s resilience was demonstrated last year during a subsea cable disruption. OADC restored 2 terabytes of connectivity within 48 hours, a project that would normally take three months, stressing the network’s ability to maintain Africa’s digital backbone under extreme pressure.

Latency is dramatically reduced, a huge factor for enterprises in fintech, cloud services, and AI. Coker explained:

“We deliver a significant, well-reliable, low-latency connection. Latency between here and points in Europe, for instance, is significantly reduced. You can interconnect into Amsterdam, the UK, Marseille. We define with cloud providers exactly where we want to meet them and cross-connect very neatly, and it has a significant result on latency.”

Since 2018, OADC has expanded strategically across the continent. The Lagos data centre in Lekki currently operates at 2 megawatts, with plans to scale to 24 megawatts. 

Facilities in Kinshasa and four South African cities—Durban, Johannesburg, and Cape Town—serve as interconnection points for global subsea cables including Google Aquiano and 2Africa, creating a robust pan-African network.

Coker elaborated that “OAfabric gives us a more efficient way of delivering growth, not just in one direction, but with the capability to reverse the direction as we have more internet exchanges here, localising data. As we bring more actual cloud on-ramps into the country, we build the infrastructure for those hyperscale ramps to come here, and that’s what we’re doing.”

OAfabric aligns with Nigeria’s mega cloud policy, ensuring sensitive data remains within national borders while empowering local cloud providers to compete with international hyperscalers. It also opens the Nigerian market to foreign investment, enabling cloud edge zones and disaster recovery zones to be deployed with speed and confidence.

Head of Converged Open and Digital Infrastructure, OADC Africa, Obinna Adumike, explained the reach of OAfabric beyond Nigeria and DRC:

“OAfabric is big, and it’s here. We have a very robust connectivity network, and the biggest advantage of that is the fact that WIOCC network can connect you to any country in the world, but most especially the closest continents that Africa impacts on; Africa, Europe, America, and then within the continent, East Africa, Southern Africa and all of that. These are the regions that most of our cloud users either connect to, send, or collect traffic.”

Simplifying Complexity for Enterprises

For businesses, OAfabric transforms previously complex digital operations into seamless, manageable workflows. Coker expatiated this:

“Think of OAfabric as a box in a data centre. You connect to it, choose your pipe size—like deciding between a two-lane or four-lane highway—and your data flows efficiently to the cloud. The faster and more reliable the connection, the better the user experience.”

“OAfabric is not just infrastructure; it represents a shift in what is possible for Africa’s digital economy,” added Dr Coker. “By removing barriers and enabling seamless, high-performance peering between key ecosystems, including local and global Internet Exchange Points (IXPs), content providers, cloud platforms and enterprises, it provides the frictionless interconnection needed to access digital services more efficiently.”

With OAfabric live in Nigeria and the DRC, OADC is creating a resilient, secure, and scalable pan-African digital ecosystem, empowering enterprises, accelerating innovation, and defining a new era of African digital sovereignty.

This makes it easier for service providers operating within the Lekki site to interconnect, while new and existing customers will have additional options for connecting to IXPN.

With the activation at the OADC facility, IXPN is now available at seven (7) data centres, making it the only IXP accessible from all the major data centres operating in Lagos. IXPN is equally available in Abuja, Port Harcourt, Kano, Enugu, and Gombe.

This is complementary to OADC’s stated intention to establish edge data centres as part of its core-to-edge data centre strategy, locating data centres and IXPs closer to the point of content consumption.

“We are happy to announce that our Point of Presence (PoP) is now live at OADC Lagos,” Mr. Rudman Muhammed, Chief Executive Officer of IXPN announced in a statement during the weekend, explaining that the idea behind the activation of its PoP at OADC is to give IXPN’s members opportunity to be in all the data centres in Lagos.

With this activation, IXPN services are now available and accessible to all network providers, providing them with affordable services and the opportunity to connect at multiple points.

“We want to be available and accessible to all service providers, and that’s why we’re expanding our tentacles to every major data centre in Lagos and as well as in other states” he added.

IXPN has aspirations to expand its reach and connect all service providers by establishing points of presence in various states across Nigeria.

These plans, when completely executed, would serve to transform Nigeria’s digital connection environment and, ultimately, fulfil the growing demand for seamless and high-performance internet connectivity for all citizens.

In response to the activation of IXPN’s PoP at OADC Lagos, Dr Ayotunde Coker, the chief executive officer of Open Access Data Centres, notes that the activation will aid OADC’s pursuit to offer its customers secured connectivity and cutting-edge services.

OADC is rapidly creating a leading, vibrant interconnect and peering ecosystem to leverage its proximity and interconnection with all cable landing stations and major data centres in the region.

“In an environment where businesses are switching to cloud-based and internet-centric technology, we believe that the activation of IXPN’s PoP at OADC Lagos will provide cloud, content providers and enterprises with increased availability of their data and expanded connectivity, which will ultimately open up new possibilities for creativity,” he assured.

Domestic data centres give service providers access to the local ecosystem, which delivers exceptional domestic and global connectivity whilst eliminating the need for data to cross borders.

They additionally serve as infrastructure that puts content closer to the end-user, resulting in significant cost savings and increased business efficiency.

Convened under the auspices of the Internet Exchange Point of Nigeria and the Nigerian Network Operators Group, the annual ngPIF brought together a cadre of decision-makers from infrastructure providers, content providers, service providers, and policy-makers. 

The two-day forum seeks to catalyze a paradigm shift, fostering a deeper understanding of the complex economics of network interconnection and peering. It aims to bridge the gaps in knowledge, reducing the prevalent information asymmetry and opening avenues for collaborative growth. 

As delegates delved into discussions and presentations, Dr Ayotunde Coker, CEO of Open Access Data Centres (OADC), delivered an insightful keynote address that resonated profoundly with the forum’s objectives.

Dr Coker’s insights highlighted Nigeria’s key role in the global data center arena, shedding light on the nation’s rapid ascent in the digital revolution. His speech laid the foundation for a deeper exploration into Nigeria’s emergence as a data hub, providing a clear narrative for the nation’s digital journey.

“Ladies and gentlemen, it’s great to be here, talking about the next big center, Africa scale, where, and how,” he said.

He delineated how Nigeria, bolstered by strategic investments and cutting-edge technology, is well-positioned to become a key player in the digital revolution sweeping across Africa.

Established in 2018, OADC, a subsidiary of the WIOCC Group, embarked on a journey to revolutionize Africa’s digital infrastructure. With a notable investment of $500 million spanning five years (2021-2026), OADC is spearheading the establishment of Tier III certified inter-linked Carrier Neutral and Open Access core data centres and edge facilities. 

These state-of-the-art facilities, African-owned and operated, are designed to meet the continent’s diverse and burgeoning digital needs.

 “Nigeria will become the next significant hub of data centre capacity, seeing significant expandable capacity reaching the toolbar, making Lagos a key scale winner.

Africa’s digital future is being shaped right here, in the heart of Nigeria, as we witness the shift of workloads from Europe to Africa, driven by the rise of AI and the need for robust data centre solutions.”

OADC’s expertise is bolstered by its affiliation with the WIOCC Group, a behemoth in the digital connectivity sphere. With a 75,000km terrestrial fibre network and a 200,000km subsea fibre network, WIOCC Group ensures seamless end-to-end connectivity across over 1,000 locations in 30 African countries.

Strategic investments in subsea cables like Equiano and 2Africa further solidify Africa’s connectivity web, enhancing data transmission within and beyond the continent’s borders.

Nigeria’s Strategic Significance

Nigeria’s unique geographic location, coupled with its robust subsea cable connectivity, positions it as a prime hub for data centers.

With 155 million internet users, including 110 million with broadband access, Nigeria ranks sixth globally in internet connectivity.

Lagos, the country’s economic powerhouse with 22 million residents and 70-80% broadband penetration, emerges as a resilient epicenter for data center investments, making it a magnet for international businesses.

The European Shift: Workload Substitution and Nigeria’s Appeal

Europe’s escalating demand for data center space, driven by the rise of Artificial Intelligence (AI) workloads, has necessitated the exploration of new frontiers. Facing constraints such as power limitations and planning restrictions, European companies are increasingly turning to Africa, particularly Nigeria, for expansion. The concept of “workload substitution” has catalyzed the establishment of cutting-edge hyperscale data centers, transforming Nigeria into an attractive destination for global enterprises.

Dr Ayotunde Coker’s keynote address at the Nigerian Peering and Interconnection Forum (ngPIF) reiterated the country’s digital journey. With stakeholders at the fore, Nigeria is well-positioned in Africa’s digital transformation. As the continent’s data landscape evolves and workloads migrate from Europe to Africa, Nigeria emerges as a hub of innovation, connectivity, and economic growth, propelling Africa into a new era of digital prowess.

“In conclusion, South Africa will remain the hub, Lagos is more likely to take the capacity substitution from Europe to enable AI to grow, Kenya has very green power and that will emerge. New high-quality hyperscale specified facilities will enable shifting workloads to the continents, new scale hubs will emerge, shifting from South Africa to other hubs; Kenya, Lagos, Morocco, while Lagod locale will be a key scale winner with availability of sub-sea, lower latency, local scale high-quality scale capability.”

Africa’s edge data centre leader and WIOCC Group company Open Access Data Centres (OADC), today announced the deployment of a further three OADC EDGE data centres (DCs) in South Africa.

The newest OADC EDGE DCs, which will be live by the end of September, are in East London, George and Paarl, located on national fibre routes to ensure availability of high-capacity interconnectivity.

Unique core-to-edge architecture

These new edge DCs represent a further stage in the deployment of OADC’s unique and expanding, core-to-edge DC architecture, which is consolidating edge computing, edge data centres and hyperscale connectivity within a single ecosystem, OADC EDGE.

This ecosystem is accelerating delivery by 5G operators, ISPs and fibre providers of life-enhancing services across South Africa, enabling rapid and cost-effective deployment of required high-quality, low-latency network infrastructure.

Reduced latency and local data processing capability

As well as enabling clients to cost-effectively deploy new network technologies and expand coverage into new markets, the OADC EDGE architecture minimises latency because content can be served near point of use, optimising end-user experience and underpinning the successful rollout of new, time-sensitive applications.

OADC EDGE facilities are secure and power-assured, offering clients an excellent option for off-site data storage, processing and disaster recovery.

The ability to pre-process large volumes of critical data at the edge, before forwarding to larger, regional facilities, also improves efficiency and optimises network costs by minimising backhaul network expenditure.

Dr Ayotunde Coker, Lagos-based OADC Chief Executive Officer, explains: “We are continuing our OADC EDGE expansion to more of South Africa’s business hubs to meet the demands of 5G operators, ISPs and fibre operators for support in extending network reach into even more locations. With almost 30 EDGE facilities now operational, we are bringing a transformational proposition to the South African market; one that we intend to start rolling out to more countries in the new year.”

“Like our core DCs, OADC EDGE facilities are open access and carrier-neutral – any licenced operator can bring fibre into OADC DCs at no charge to support clients’ connectivity requirements,” continued Coker.

OADC EDGE DCs offer colocation, rooftop access and high-speed network interconnectivity between facilities at up to 100Gbps and on multiple routes for diversity.

Looking ahead

Integral to OADC’s core-to-edge, open-access DC offering is the launch of core DCs in each of the country’s major connectivity hubs, supplementing its nationwide rollout of more than 100 0.5MW OADC EDGE DCs.

New 2-3MW, Tier III OADC facilities are undergoing fit-out and will be coming online before the end of the year in Johannesburg and Cape Town.

In totality, this represents the largest – and most rapid – deployment of open-access DCs on the continent.