The programme is expected to begin on Wednesday and comes as demand for digital infrastructure increases across Africa.

Growth in cloud services, artificial intelligence workloads and enterprise data storage has increased requirements on operators to find engineers who can run critical systems.

Experts in the sector say new facilities are opening, but skilled workers remain in short supply.

“There’s a lot of recycling of the same people across companies,” said Adebola Adefarati, Rack Centre’s head of marketing and communications. “People move from one data centre or telco to another, and it becomes a closed loop. The industry has to start creating new talent.”

Rack Centre said many operators still depend on internal training because experienced workers are limited. The problem is bigger in Africa, where specialised training is scarce and trained staff are usually hired away by foreign firms.

According to the company, engineers who can manage infrastructure in Nigeria are especially attractive abroad because they already understand how to work under difficult conditions such as unstable grid power and high temperatures.

“Once people gain experience running reliable systems in Nigeria, they become prime targets,” Adefarati said. “We’ve seen a number of our own people leave for opportunities abroad.”

Rather than compete for the same workers, Rack Centre said it wants to help build a larger talent pipeline for the industry.

Data centres usually run with small teams, but those teams need specialised knowledge. Staff must manage power systems, cooling equipment, network hardware, monitoring tools and emergency response systems around the clock.

The first group will take in between 15 and 20 trainees. Rack Centre said only some may join the company after graduation, while others could move into jobs with telecom firms and other data centre operators.

Participants will receive classroom training, technical certifications and practical experience inside a live operating facility. One certification track will be delivered with Schneider Electric’s training platform. The full programme will run for about four to five months.

Rack Centre said it will fully cover the estimated $2,500 cost per participant.

“The issue is not that people aren’t studying engineering,” Adefarati said. “It’s that they’re not trained to work on systems that must run 100% of the time. Data centres are different. You’re dealing with redundant power, precision cooling, and real-time fault detection in a highly sensitive environment.”

The company said operating in Nigeria brings added pressure. Cooling systems must work efficiently in extreme heat, while power infrastructure must cope with an unreliable national grid.

Rack Centre is also developing the programme with the Africa Data Centres Association, which is working towards training up to 1,000 professionals over the next two years.

The initiative also aims to improve gender balance in the sector. Women are still underrepresented in many technical operations roles, and Rack Centre said it wants at least one-third of each cohort to be female.

“Data centres are often seen as hardware,” Adefarati said. “But their success is fundamentally about people.”

Installed capacity, which sat at just under 70MW in 2024, is projected to reach about 330–340MW by 2026, a fivefold expansion that few emerging markets can reach. 

That scale of expansion results from high demand from cloud providers, financial institutions, digital platforms and AI-driven services that can no longer depend on offshore infrastructure without paying the price in latency, cost and compliance.

Valued between $280 to 300 million today, the market is expected to approach $670 million by 2030, with investments over $1.7 billion by 2027. 

Colocation revenue alone is forecast to grow from about $251 million in 2025 to almost $580 million by 2030, growing at a pace of over 18% a year. 

Hyperscale campuses, carrier-neutral sites and well-engineered Tier III and IV facilities designed for dense, powerful workloads are driving this growth. 

Interestingly, nearly 70% of new data centre capacity planned for West Africa is being developed locally, anchoring Lagos as the region’s primary hyperscale and interconnection hub.

Supported by nationwide fibre initiatives such as Project BRIDGE, which aims to lay 90,000 kilometres of fibre across the country, and a digital economy projected to contribute up to $180 billion to Africa’s GDP by 2026, the foundations are now in place.

Taken together, these explain why 2026 has a lot in store to look forward to. This is the year Nigeria’s data centre market gains larger scale and competitiveness.

These top data centre and cloud projects to watch in 2026 are laying the foundations for how data, cloud and AI will work in Africa’s largest economy.

1. 21st Century Technologies’ 50MW Hyperscale Facility, Ikeja

What makes 21st Century Technologies’ Ikeja project impossible to ignore in 2026 is not just its size, but its intent. At 50MW, this is one of the largest hyperscale builds in West Africa, but its vision goes deeper. 

The facility is being designed for a phase where artificial intelligence, sovereign cloud and national data control are immediate needs. With demand for AI compute increasing across Africa, power and reliability have become the battlegrounds. This project faces that reality head-to-head.

The Ikeja site is engineered to Tier IV standards, with full N+2 redundancy across power, cooling and network layers. That is important because AI and mission-critical cloud workloads do not tolerate downtime. This facility will set a new benchmark for resilience in Nigeria’s data centre market. 

Its AI-ready architecture supports both hyperscale cloud providers and enterprises running heavy models locally, reducing dependence on offshore infrastructure and latency-prone routes. With open-access connectivity and a newly deployed regional network gateway, 21CTL is turning Ikeja into a serious interconnection hub.

This is a homegrown Nigerian hyperscale project at a time when most large facilities are foreign-owned. In 2026, data sovereignty will matter more than ever, especially for governments, banks and AI developers working with sensitive datasets. 

In combining scale, local leadership and global partnerships, 21st Century Technologies is going beyond adding capacity to laying down infrastructure that supports economic growth, skilled jobs and Africa’s long-term digital independence. That is why this project belongs strongly on any watchlist.

2. Airtel Africa’s 38MW Nxtra Hyperscale Data Centre, Eko Atlantic

Airtel Africa’s Nxtra facility at Eko Atlantic is unique because it is being built for the next wave of computing, not the last one. At 38MW, this carrier-neutral hyperscale data centre expands Nigeria’s capacity at a time when AI workloads are rewriting the laws of data centre design. 

High-density racks, GPU-ready halls and serious power planning are now highly indispensable. Nxtra is leaning fully into that transition.

Location is a strategic advantage here. Eko Atlantic provides direct proximity to major subsea cable routes and fibre corridors, translating into lower latency and stronger international reach. For cloud providers and enterprises, this is important. 

In 2026, the ability to deploy AI and cloud services locally, while staying tightly connected to global platforms, will define competitiveness. We expect this facility to attract both hyperscalers and regional platforms looking for neutral ground in Lagos’ fast-crowding data centre sector.

Beyond capacity, Nxtra’s importance lies in timing and scale. Backed by over $120 million in investment and scheduled to go live in early 2026, it arrives just as Nigeria’s cloud market enters its next growth phase. 

Its targeted power efficiency, multiple substations and regulatory alignment give it an edge with fintechs, telecoms and data-heavy enterprises under pressure to keep data onshore. 

This points to the fact that telecom operators now see data centres as core to Africa’s digital economy, not a side business.

3. Open Access Data Centres’ 24MW Hyperscale Expansion, Ilasan

Open Access Data Centres’ Ilasan project earns its place on this list because it solves one of Nigeria’s biggest digital problems, which is connectivity at scale. 

Expanding from 2MW to a planned 24MW by 2026, the Ilasan site is designed to serve hyperscalers, cloud platforms and AI-driven enterprises that demand both power and speed. Sitting directly next to the Equiano subsea cable landing station, it provides one of the lowest-latency environments in West Africa.

What truly differentiates this project is its open-access model. Carrier neutrality means choice, and choice drives competition, resilience and better pricing. Through its Open Access Fabric, OADC is effectively collapsing the distance between Lagos and Europe, making global cloud services feel local. 

With more workloads staying in-country to meet data protection regulations, facilities like Ilasan become strategic assets rather than simple colocation sites.

The scale of investment, $240 million committed as part of an African expansion plan, cannot be ignored. This project reveals a high confidence level in Nigeria’s digital growth. Sustainability is being built in from the start, with renewable energy integration and efficient design reducing long-term operating risk. 

In 2026, success will favour data centres that balance scale, connectivity and cost discipline. OADC’s Ilasan facility does exactly that, positioning Lagos as a regional hub ready to take its place in the global cloud and AI infrastructure map.

4. MTN’s Dabengwa Data and Cloud Centre, Lagos

MTN’s Dabengwa Data and Cloud Centre earns its place on this list of top data centre and cloud projects to watch in 2026 because it represents a transition in how large-scale digital infrastructure is being delivered in West Africa. 

Launched in 2025 and already seeing demand outpace supply, the facility is the region’s largest prefabricated modular data centre. That is important in 2026, when speed, flexibility and reliability are no longer nice-to-haves. At full build-out, the centre provides 9MW of Tier III capacity, designed to scale in phases as demand continues to rise.

What’s most interesting is the build approach. Using 96 prefabricated containers across three floors, the centre was designed to deploy faster, expand cleanly and maintain high resilience under pressure. 

This is a practical response to Nigeria’s infrastructure situation. The modular design allows MTN to add capacity without long construction cycles, while Tier III certification ensures uptime for cloud, enterprise and public sector workloads. Early adoption by government agencies and enterprises shows that trust is already in place.

In 2026, the Dabengwa Centre will not be judged just by size, but by impact. It is already supporting cloud platforms, fintech services and government systems aligned with Nigeria’s digital economy agenda. 

With strong partnerships and deep local market reach, MTN is using this facility to anchor cloud services closer to users and institutions. That combination of scale, speed and adoption is why this project deserves close attention.

5. Kasi Cloud LOS1 Hyperscale Data Centre, Lekki

Kasi Cloud’s LOS1 project is ambitious by any standard, and ambition is exactly why it belongs on this watchlist. Planned as a 100MW hyperscale campus backed by a $250 million investment, LOS1 is designed to operate at a scale Nigeria has not seen before. 

In 2026, scale will be more important than ever. Cloud providers and large platforms are no longer looking for incremental capacity. They want room to grow, and LOS1 is being built to provide it.

Location and backing strengthen the case. Situated on the Lekki Peninsula and supported by the Nigeria Sovereign Investment Authority, LOS1 combines strategic geography with sovereign confidence. 

The facility is designed as a carrier-neutral interconnection hub, built to attract global cloud platforms while supporting local digital services. 

Nigeria is not just a consumer of cloud services, but also a host for regional digital infrastructure.

Sustainability pushes LOS1 even further ahead. With a target of 95% renewable energy usage, the project sets a new benchmark for green hyperscale development in Africa. In 2026, energy efficiency will be a deciding factor for hyperscalers weighing long-term operating costs and risk. 

LOS1’s focus on clean power, massive capacity and interconnection makes it a cornerstone project that will change how the world views West Africa.

6. Jovis Nigeria Data Centre, Victoria Island

The Jovis Nigeria Data Centre is among the top data centre and cloud projects to watch in 2026 because it shows where demand is heading, not where it has been. 

Located in Victoria Island, the country’s financial and commercial nerve centre, the project seeks to serve banks, fintechs, corporates and digital platforms that need low latency and local hosting. 

In 2026, proximity will be essential. Data-heavy services cannot afford distance when speed and compliance are on the line.

This project is also part of a growth wave changing Nigeria’s data centre market. With hundreds of megawatts of new capacity expected by 2026, competition will increase, and only well-located, well-built facilities will thrive. 

Jovis benefits from experienced delivery partners and a Tier III design approach that aligns with enterprise and regulatory needs. This is a measured, useful addition to Lagos’ fast-growing infrastructure base.

What makes Jovis one to watch is timing. As data localisation regulations tighten and open banking and digital public services expand, demand for secure domestic hosting will increase. 

Facilities like this help reduce reliance on offshore infrastructure while creating local jobs and skills. In 2026, the Jovis Data Centre will not just be another site in Lagos. It will be a pointer to how Nigeria’s digital economy is getting stronger, one project at a time.

7. Equinix LG3, Lagos

Equinix LG3 is key in 2026 because it marks a turning point, not an expansion. This is the first ground-up Equinix facility in West Africa, and it reveals a deeper, long-term commitment to Nigeria as a regional connectivity hub. 

While earlier presence came through acquisition, LG3 is purpose-built, designed from day one to integrate Lagos into Equinix’s global interconnection platform. That alone changes how international businesses view Nigeria.

Lagos already sits at the crossroads of multiple subsea cable systems, and LG3 is built to convert geography into economic advantage. By bringing global interconnection services directly into Victoria Island, Equinix is shortening the distance between Nigerian enterprises and global markets. 

This facility is expected to become a magnet for multinational firms, cloud platforms and fast-growing local companies that need secure, low-latency access to partners and customers worldwide.

What to watch in 2026 is not just occupancy, but influence. With LG3 going live in the first quarter and backed by a $100 million Africa expansion plan, Equinix is embedding Nigeria into its worldwide fabric of interconnected data centres. 

That pushes Lagos from a regional hosting location to a true global exchange point. For the cloud and enterprise market, this is a structural transition, not a headline project.

8. Rack Centre LGS2 Expansion, Lagos

Rack Centre’s LGS2 expansion stands out because it combines scale, sustainability and neutrality in a way few projects in the region can match. At 12MW, it expands the company’s footprint and positions the campus as one of the largest carrier-neutral sites in West Africa. 

In 2026, capacity alone will not be enough. Data centres that succeed will be those that can scale responsibly and connect efficiently, and this expansion is designed with that reality in mind.

The sustainability angle is not to be ignored. LGS2 builds on Rack Centre’s green credentials, with energy- and water-efficient design that has already set regional benchmarks. This is becoming more important as operators face high energy expenses and pressure from enterprise customers to meet environmental targets. 

The site’s ability to host dense workloads while maintaining efficiency gives it an edge as demand for compute continues to climb.

What makes LGS2 particularly relevant in 2026 is its ecosystem role. With access to all major Atlantic subsea cables and dozens of carriers, Rack Centre is not just adding space, it is strengthening Lagos’ place as an interconnection hub. 

With more data required to stay within national borders, facilities like this will anchor Nigeria’s digital sovereignty while supporting cloud growth at scale.

9. Africa Data Centres (Pan-African Expansion)

Africa Data Centres earns its place on this list not because of a single site, but because of its reach. In 2026, the story will move from isolated facilities to networks, and ADC is building one of the largest carrier-neutral footprints on the continent. 

Its expansion across Nigeria, Kenya, South Africa, Morocco and other key markets makes it a backbone in Africa’s digital economy.

Demand is the driver. Internet usage, digital payments, enterprise cloud adoption and content consumption are all accelerating, and latency is no longer acceptable. Hosting workloads closer to users is becoming essential. 

ADC’s strategy is a direct response to that pressure. Creating interconnected hubs across multiple countries, it enables cloud providers and enterprises to deploy regionally while staying compliant with local data rules.

In 2026, ADC’s importance will be measured by how seamlessly it links markets. Its facilities are designed to support hyperscale platforms, financial services and governments that need reliability and choice. 

Africa’s data centre capacity is expanding, and ADC’s pan-African model doesn’t just make it a landlord, but an enabler of cross-border digital trade and growth.

10. Project BRIDGE – Nigeria’s National Fibre Backbone

Project BRIDGE belongs on this list because data centres do not operate in isolation. Fibre is the silent dependency, and in 2026 this project will determine how far Nigeria’s cloud ambitions can really go. 

By planning to roll out 90,000 kilometres of open-access fibre, BRIDGE addresses the single biggest limitation facing large-scale digital infrastructure, and that is national connectivity.

What makes BRIDGE different is reach. While most data centre projects are clustered around Lagos, this initiative extends high-capacity connectivity to all 774 local government areas. 

That changes the economics of cloud services. This is the moment when data centres stop serving only coastal markets and begin supporting nationwide digital services in health, education, finance and public administration.

In practical terms, BRIDGE is the foundation beneath every hyperscale build planned for 2026 and beyond. Without reliable fibre backhaul, scale is theoretical. 

With it, cloud platforms can provide consistent performance across the country. For investors and operators, this project is the infrastructure that makes every other project on this list viable.

In this space, companies like MainOne (now Equinix), Rack Centre, and WIOCC through its Open Access Data Centres (OADC), are investing heavily to strengthen Nigeria’s digital backbone. 

But which of them is best positioned to ensure growth across the Nigerian startups sector?

MainOne (Equinix): The Global Reach & Certification Anchor

MainOne has leveraged its submarine cable system, fibre optic network, and its acquisition by Equinix to offer reach and certified reliability. Its data centre arm, MDXi, holds the Uptime Institute Tier III Constructed Facility certification (TCCF), among several other certifications (PCI-DSS, SAP Infrastructure Services, ISO 27001 & 9001). 

Its Network Connect and Cloud Connect services link local branches or clouds with global infrastructure. For example, by routing traffic via its submarine cable and leveraging Equinix Fabric, it offers predictable performance and connectivity from Lagos to key global hubs.

Power reliability, a common pain point in Nigeria, is one of MainOne’s standout strengths. Its Lagos data centre integrates multiple power redundancies, utility partnerships, and high-capacity generators to maintain near-continuous uptime. That’s essential for startups whose businesses can’t afford downtime.

Still, MainOne’s premium-grade services usually come at higher prices. For small or growing startups, that might make it more suitable at later stages of expansion rather than at the beginning.

So, MainOne offers scale, high certifications, international interconnect, and relatively lower risk from interruptions.

Rack Centre: The Nimble, Neutral & Efficiency-Driven Option

Rack Centre carved its reputation as Nigeria’s first carrier-neutral Tier III certified data centre. Unlike most competitors, it is not owned by any telecom or internet provider, which gives clients the flexibility to interconnect with over 70 different carriers and ISPs. That neutrality is one of its biggest competitive edges.

Its location in Oregun, Lagos, provides direct access to all the major undersea cables serving Nigeria, including WACS, MainOne, Glo-1, SAT-3 and ACE. The result is low latency, strong redundancy, and smooth interconnection between local networks.

Rack Centre’s new LGS2 facility represents a huge step forward. The 12MW hyperscale and AI-ready centre is designed for exceptional energy efficiency and sustainability, with advanced cooling systems and a lower Power Usage Effectiveness (PUE) ratio. This reduces operational costs and aligns with global sustainability standards, an important factor for modern tech companies.

Its approach appeals particularly to startups seeking flexibility, local performance, and freedom from vendor lock-ins. However, Rack Centre’s challenge is scale: it has a solid local presence but lacks the global integration that Equinix offers through MainOne.

One of its strongest propositions is neutrality: Rack Centre is not owned by a telco, ISP or cloud provider; it does not compete with its tenants; therefore, there is less risk of vendor lock-in or conflict. 

For startups, especially those scaling fast, Rack Centre tends to offer strong locality benefits: low latency within Nigeria, strong peering via IXPN, predictable interconnects, and usually more flexible arrangements for rack space or interconnection.

WIOCC / OADC: The Pan-African Connector, Big Capacity Incoming

WIOCC, via its Open Access Data Centres (OADC) arm, is scaling aggressively. Its strategy is open access, hyperscale capacity, and linking regional networks. 

OADC’s expansion plan is one of the biggest in the sector. The company has committed over $240 million to expand its Lagos data centre to 24 megawatts by 2027, starting with a 12MW first phase. The facility is designed to support cloud providers, hyperscale clients, and growing tech firms that need capacity and cross-border connectivity.

WIOCC also launched OAfabric, its cloud interconnection platform, which allows businesses to connect directly to international cloud services through a simplified interface. Combined with its wide fibre and submarine network, it aims to provide both affordability and regional reach.

That said, OADC’s infrastructure in Nigeria is still relatively new, with much of its full capacity under development. The scale and potential are enormous, but the market will need to see consistent delivery over time.

Its strength is scale (once the full capacity is live), strong peering potential across borders, and an open access model that benefits ISPs, cloud providers and telcos who need wholesale connectivity.

Comparing Strengths and Trade-offs

Each company brings something unique to Nigeria’s digital economy. MainOne is on top when it comes to global integration and enterprise-grade reliability, backed by Equinix’s global standards. For Rack Centre, it’s in neutrality, local performance, and energy efficiency, making it ideal for startups prioritising flexibility and cost control. WIOCC, meanwhile, is building a network that could redefine cross-border connectivity and scale for Africa’s data economy once fully realised.

In terms of reliability, both MainOne and Rack Centre already provide strong uptime backed by Tier III certifications. MainOne’s international connectivity gives it an advantage for startups with global vision. Rack Centre provides a more accessible, locally optimised alternative for startups that value independence and direct peering with multiple providers. WIOCC is the long-term investment, its pan-African fibre network and future 24MW capacity could make it the infrastructure giant to watch.

What I Think Startups Should Care About Most

If I were advising a startup today, I would tell them:

• Get your foundation right: data sovereignty, uptime, and latency are not optional. Pick a provider with strong certifications and multiple power/fibre redundancy.
• Think about the cost-to-scale: what looks affordable at 10 racks may be expensive at 100. Check how interconnect charges, cross-connects, and peering fees scale.
• Be wary of lock-in. Providers that are carrier-neutral and open access give more flexibility to mix and match cloud, network, and hosting providers.
• Monitor sustainability and total cost of ownership. Facilities that waste energy or have unreliable back-up power may cost more when things go wrong.

Who’s Best Positioned?

Each of these providers has a part. If I had to pick:

• For startups already serving international customers or aiming to scale globally, MainOne/Equinix remains ahead because of its global interconnection, submarine cable reach, and certifications.
• For startups focused on Nigeria or nearby countries and needing lower latency, predictable interconnect and flexible arrangements, Rack Centre looks like a strong option.
• For companies needing wholesale capacity, cross-border reach, or anticipating rapid growth in cloud usage, WIOCC/OADC will likely pull ahead once their full capacity is available and stable.

In short: there is no single perfect choice. But the competition among these three is powerful for our ecosystem. Startups will benefit as they force better reliability, lower prices, and greater innovation. And I’m positive the fate of Nigerian startups looks brighter if we build this backbone well.

Maher Jarmakani, the chairman, Rack Centre, disclosed this during the official commissioning of the data centre held at the company’s head office in Lagos on Thursday, April 10, 2025.

Jarmakani noted that the commissioning of the new facility reinforces the company’s commitment to innovation, reliability and security, stating that its goal of providing premium data infrastructure such as the 12MW IT load LGS2 was geared towards ensuring uninterrupted, energy-efficient, world-class services and providing scalable solutions for enterprises, cloud providers, and financial institutions.

He disclosed that the company would continue to lead and play a critical role in powering Nigeria’s digital future.

“It is important to note that Rack Centre is the only data center located on Lagos Mainland, and with its proximity to critical government apparatus, this facility provides the required connectivity that makes Alausa’s day-to-day communication and cloud services efficient and reliable. Rack Centre’s infrastructure ensures that every byte of data moves swiftly and securely, and our role as a digital switch platform will only grow—connecting people, businesses and ideas to build a truly advanced society,” he said.

In his keynote address, Babajide Sanwo-Olu, the governor of Lagos State, who was represented by Sam Egube, his deputy chief of Staff, stated that the unveiling of the new 12MW LGS2 IT Load data centre, marks a pivotal moment in the journey towards a truly digital economy.

While commending the management of Rack Centre for constructing a data centre infrastructure with sustainability and energy efficiency in mind, he noted that investment in such advanced technology would certainly attract investors from across the globe particularly those who see Lagos as a hub of innovation and digital transformation.

He further described the company as a trailblazer in the tech and data infrastructure space adding that this new facility represents a leap in the shared ambition to make Lagos a smart, globally competitive digital hub.

Delivering the vote of thanks, Lars Johannisson, the chief executive officer, Rack Centre, expressed profound appreciation to the Lagos State Government for creating an enabling environment and providing the necessary support to deliver this landmark project.

Johannisson explained that the facility offers best-in-class services that meet the highest international standards, offering scalable solutions to hyperscalers, enterprises, and cloud service providers.

He described the newly commissioned facility as a significant milestone that symbolises a new chapter in Nigeria’s digital transformation, shaped by technological advancement, sustainable digitisation and AI.

While acknowledging the company’s transformative journey over the last 12 years, he disclosed that the company had risen from a pioneering entrepreneurial venture into a cornerstone of West Africa’s digital ecosystem, thereby underlining its role in securing and enabling Nigeria’s digital economy.

He further noted that with the facility now being utilised, the data centre capacity of the company would increase by eight-fold as this would consolidate its leadership as the digital infrastructure hub in sub-Saharan Africa.

“Our previous facility, LGS-1, ran on 1.5 megawatts of power. The new site? 12 megawatts, nearly 800% increase in capacity. This isn’t just an expansion, it’s an outright transformation of Nigeria’s data infrastructure,” Lars Johannisson, Rack Centre, CEO stated.

“What it really means, going from 1.5 to 12 megawatts, we are establishing ourselves as a hyperscale AI-ready data centre in Nigeria. We are essentially doubling the existing capacity of data centres in Nigeria.”

For 12 years, Rack Centre has thrived in ensuring data connectivity in West Africa, asserting a 100% uptime record since 2013, an achievement almost unheard of in the industry.

“Uptime and asset integrity are everything,” the CEO stressed. “When your data is unreachable, business stops. We don’t let that happen.”

But beyond just keeping the lights on, Rack Centre has built a network that rivals global standards. The facility connects to all eight undersea cables serving Nigeria, giving businesses the most robust and redundant connectivity available.

The world is moving fast, and artificial intelligence is leading. “AI adoption is happening faster than PC and internet adoption ever did,” Johannisson noted. “The infrastructure must be ready, and that’s exactly what we’ve built.”

This new facility is designed with AI and hyperscale computing in mind. The Data Centre is made up of six halls with each taking two megawatts and racks that can handle up to 50 kilowatts of power per unit. The centre is prepared for the high-performance demands of AI workloads. 

“Infrastructure is the foundation of AI-driven economies,” said Ezekiel Egboye, the COO. “We are building for today while preparing for a future that’s coming at lightning speed.”

Nigeria’s internet penetration stands at 48% and is growing fast. It’s also home to Africa’s largest fintech ecosystem, making it a prime location for digital investment. Nonetheless, even with these strengths, only 2% of the world’s data centres are in Africa, half of which are concentrated in South Africa.

“This is an untapped goldmine,” Rack Centre’s CEO stated.

Focusing on Sustainability 

Running a data centre is energy-intensive, but Rack Centre is taking a sustainable-first approach. “Since 2013, we have operated independently of the national grid, generating our own power,” said the COO.

The new facility will rely primarily on gas turbines and solar power, making it the most energy-efficient data centre in Africa.

“We’re betting on sustainable digitalisation,” Egboye affirmed. “Our clients demand it, society expects it, and we are delivering it.”

With data being kept within Nigeria, Rack Centre is reducing capital flight, cutting latency, and providing more affordable digital services, ultimately bolstering the country’s economy.

“For businesses, this means lower costs of operations, faster transactions, and greater reliability,” said Folu Aderibigbe, sales director at Rack Centre. “Every sector will benefit from this, including banking and entertainment.”

The financial impact is enormous. “We’re talking about a triple-digit million-dollar investment—the largest of its kind in West Africa,” the CEO revealed.

The ultimate goal? Making digital access available to all Nigerians. “Cloud adoption is not a luxury, it has become a necessity.”

But access must be affordable. “The key to closing the digital divide is ensuring that 2G users can transition to 4G and 5G,” Egboye explained. “We’re working with mobile operators and device makers to make this a reality.”

Rack Centre is ensuring that businesses can keep their data within the country while meeting global security and compliance standards.

“We are the only IFC-certified data centre in the Middle East, Africa, and Europe,” the COO highlighted. “This is a big deal—it means we meet the world’s highest standards for environmental and energy efficiency.”

This is a statement. Rack Centre isn’t just expanding, but boosting Nigeria’s entire digital sector.

“By April, we’d launch West Africa’s largest data centre investment,” Johannisson said. “And this is just the beginning.”

Hosting at Rack Centre, Olla Cloud Service runs on a state-of-the-art, cloud-enabled infrastructure for enterprise applications across diverse platforms including mission critical application, web applications as well as containerized applications using Kubernetes.

Lars Johannisson, the CEO of Rack Centre, welcoming Olla Systems, noted that the partnership with Olla Systems Limited reflects the company’s commitment to providing African businesses with high-quality cloud computing services.

He noted that Olla Systems will enjoy Rack Centre’s 13.5MW data centre campus facility, designed to meet the highest international standards and offering scalable solutions to Hyperscalers, Enterprises, & Cloud service providers.

Citing three distinct features of the data centre facility, he stated the 100% uptime since inception, the facility’s AI-readiness and adoption of green practices.

As part of its commitment to sustainability, the facility is equipped with energy-efficient systems, advanced cooling technologies to mitigate environmental impact and an optimally-designed feature to handle high-density workloads with precision.

With features such as N+2 high-efficiency cooling units, an integrated Building Management System (BMS) for optimal performance, and the lowest Power Usage Efficiency (PUE) in the region, the data centre campus facility combines capacity, sustainability, and innovation.

This reinforces the position of Rack Centre as a leader in the Nigerian data centre market that will aid the development of Nigeria and West Africa’s digital ecosystem.

Johannisson reiterated,

“With Olla Cloud Service hosting at Rack Centre, clients will experience fast performance and low latency, enabling businesses in Africa to access world-class cloud computing services within a secure and compliant local infrastructure.”

Also speaking, Chief Executive Officer, Olla Systems Limited, Olusola Adenuga, expressed enthusiasm about hosting at Rack Centre, noting that OllaCloud remains a groundbreaking private cloud solution for businesses.

While highlighting the benefits of the partnership between Rack Centre and Olla Systems, Adenuga disclosed that subscribing to OllaCloud Service is cost-effective to customers because of its local currency payment advantage.

She also noted that the partnership between the duo provides businesses the opportunity to meet regulatory requirements of data residency, while enjoying world-class infrastructure as a service (IaaS) locally.

“Other benefits of hosting with OllaCloud include: 24/7 support, unparalleled performance, scalability and agility.” she added.

OllaCloud Service is the perfect fit for businesses with high-performance needs, from startups with rapid growth plans to enterprises with large-scale operations.

Whether you need to migrate existing workloads or build new cloud-native applications, our solution provides the foundation for digital transformation.

This initiative aims to enhance local cloud capabilities, attract hyper-scale investments, and position Nigeria as a leading technology hub in Africa.

Speaking at the inauguration, Kashifu Inuwa, NITDA’s Director-General, emphasised the need for accurate data and regulatory frameworks to support these initiatives, necessary for Nigeria to control its digital infrastructure, data, and technological future noting that,

“Without this foundation, we cannot achieve true digital sovereignty. Our goal is to build an ecosystem where both local data centre providers can scale, and global hyper-scalers see Nigeria as a viable investment destination.”

While identifying lack of accurate data on Nigeria’s IT infrastructure as significant challenge, Inuwa noted that while Africa comprises nearly 19% of the world’s population, it hosts less than 1% of global data centres.

“This disparity, coupled with limited insights into Nigeria’s existing IT capacity, hampers investment efforts and without clear data on our infrastructure, attracting investment becomes challenging,” he said.

The NITDA boss maintained that, to address this, NITDA commissioned comprehensive research to assess Nigeria’s digital landscape which findings have highlighted the need for improved regulatory frameworks, clearer investment incentives, and stronger public-private collaboration. He added that subsequently upon this, NITDA has engaged global consultants to redefine strategies for cloud development.

As the TWG embarks on its mission, NITDA urges industry experts, policymakers, and stakeholders to contribute their expertise and resources. “With collective effort, Nigeria can emerge as the premier digital hub for West and Central Africa,” Inuwa concluded.

While corroborating the Director General’s point of views, Acting Director of Regulation and Compliance, Mr. Emmanuel Edet, underscored the importance of regulatory intervention in fostering a robust digital economy.

“Our objective is to establish policies and legal frameworks that support cloud development, enabling us to securely host and manage our data. This is crucial for the growth of our digital economy, Edet said.”

He also highlights the necessity of capacity building, stating that, “Equipping ourselves with top-tier training and expertise is essential to fully leverage digital technologies.” Mr. Edet called on all stakeholders to actively participate in shaping Nigeria’s digital future. “Collaboratively, we must develop a framework that reflects our national interests, and it should be widely accepted. This effort will define Nigeria’s role in the global digital arena, he observed.

The TWG will help in the drive to attract hyperscale investments and enhance local cloud capabilities by proffering measures to encourage the use of accurate data, recommend the enactment and compliance to enabling policies.

Techeconomy can report that members of the TWG which includes Google, AWS, IBM, Oracle, Microsoft, HUAWEI Cloud, Equinix, Kasi, Rack Centre, Africa Data Centres, several other data centre operators and the Nigeria Data Protection Commission expressed support and readiness to volunteer and contribute resources.

According to Muhammed Rudman, IXPN’s CEO, the forum provides a valuable platform for collaboration, interaction, and sharing IXPN milestones with its members.

He emphasized the organization’s dedication to building a stronger internet exchange ecosystem and advancing Nigeria’s digital landscape through efficient interconnectivity, robust collaborations, and the seamless exchange of ideas.

“IXPN plays a pivotal role in ensuring fast, reliable, and secure internet exchange services for organizations across the country. Thus, this forum offers an important opportunity to engage with our valued customers, address challenges, celebrate our successes, and envision a brighter digital future for Nigeria,” said Rudman.”

Highlighting key milestones achieved in 2024, Rudman noted IXPN’s recognition as a MANRS-compliant Internet Exchange Point, demonstrating its commitment to secure and reliable Internet routing.

He also cited multiple link upgrades between key Points of Presence (PoPs), including Digital Realty (Medallion) to Equinix (MDXi), Rack Centre, and ADC, significantly increasing capacity.

Another key achievement was the deployment of Microsoft Connected Cache to reduce latency and optimize bandwidth utilization for Microsoft static content.

Looking ahead to 2025, IXPN ‘s planned projects and initiatives include establishing additional exchange points in other states, attracting more content providers to the country, setting up CDNs and caches in regional IXPN PoPs, offering VLAN services within Lagos and supporting remote peering, and upgrading core devices and main links.

IXPN’s core functions include keeping Nigerian internet traffic local, reducing costs associated with accessing local content, enhancing local connectivity, improving the overall internet experience, promoting local content creation, and serving as a centralized launch point for services.

As of today, the organization currently boasts 125 members, seven PoPs in Lagos (ICNL, Medallion, Rack Centre, MDXi, ADC, OADC & Cloud Exchange), and additional PoPs in six other cities: Abuja, Port Harcourt, Kano, Enugu, Delta, and Gombe.

IXPN also manages a peak aggregate traffic of 900 Gbps.

This couldn’t be further from the truth, especially in Nigeria, where cloud adoption is growing, yet the affordability of cloud services is still bothersome for many. 

Surprisingly, the global cloud computing market is projected to reach $947.3 billion by 2026, with over 96% of companies using public cloud services. 

This growth is reflective of the way businesses, big and small, are leveraging cloud services to reduce costs of operations and improve efficiency. 

While Nigeria’s cloud market is projected to reach $1.03 billion by 2025, it’s necessary to understand how Nigerian startups and SMEs can benefit from affordable cloud solutions to facilitate growth and operations, as well as get to know providers that offer affordable services.

For small businesses in Nigeria, adopting cloud computing goes beyond reducing overhead costs. It also includes scaling operations and ensuring you do not miss opportunities at all. 

With the market growing at a compound annual rate of 25.98% from 2025 to 2030, it’s obvious that cloud computing is a necessity for businesses that intend to scale.

The Nigerian government has even positioned cloud adoption as a priority through initiatives like the National Digital Economy Policy and Strategy (NDEPS), further encouraging businesses to embrace the cloud.

Sectors such as fintech, e-commerce, and education are already taking up this technology, helping to drive innovation, efficiency, and growth. Moving to cloud solutions will help businesses significantly reduce costs tied to infrastructure, improve collaboration, and scale as needed without the issue of upfront capital expenditure.

Affordable Cloud Service Providers: Global and Local Solutions

When it comes to cloud services, Nigerian businesses can choose from a variety of global and local providers that offer cost-effective solutions. Here are some options for small businesses and startups:

Global Providers

1. Google Workspace Google Workspace provides a suite of tools—Gmail, Drive, Docs, and more—perfect for collaboration.

• Pricing: Plans start at ₦5,508 per user per month.
• Benefits: Seamless integration, enhanced collaboration, and solid security features.

2. AWS Free Tier Amazon Web Services offers a free tier for new customers, enabling startups to access services like storage and virtual servers for the first 12 months, making it ideal for those just starting.

• Pricing: Free for the first 12 months, then standard rates apply.
• Benefits: A wide range of services, pay-as-you-go model, and scalability.

3. Microsoft Azure for Startups Azure offers a programme designed for startups, providing free credits and access to developer tools.

• Pricing: Up to $150,000 in Azure credits.
• Benefits: Access to advanced cloud services, technical support, and resources built specifically for startups.

4. Zoho Known for its affordable CRM and collaboration tools, Zoho is popular among small businesses seeking value for money.

• Pricing: Varies depending on services; starts at ₦10,999 per organization per year.
• Benefits: Low-cost solutions with customizable workflows and multi-currency support.

5. Rack Centre As one of Nigeria’s leading data centres, Rack Centre provides affordable and reliable cloud hosting solutions with localized support.

• Pricing: Detailed pricing given upon request.
• Benefits: Local data hosting, compliance with Nigerian data protection regulations, and minimal latency.

6. MainOne Cloud Services MainOne gives flexible cloud storage and hosting solutions designed for Nigerian businesses.

• Pricing: Provides detailed pricing upon request.
• Benefits: Cost-effective services with strong security features and local infrastructure.

These providers make it clear that access to cloud services doesn’t have to come at a premium. Whether from global giants or local players, affordable and reliable options are within reach.

Why Cloud Computing is Essential for Nigerian SMEs

Adopting cloud solutions can interestingly improve business efficiency and collaboration. With cloud services, Nigerian SMEs can:

• Save Costs: No need for expensive hardware or IT infrastructure; the pay-as-you-go model allows businesses to pay only for what they use.
• Scale Easily: Resources can be adjusted based on demand, meaning businesses can scale without worrying about infrastructure limitations.
• Collaborate Better: Real-time collaboration tools enhance teamwork, regardless of geographic location.
• Ensure Security: Leading providers offer encryption and security updates, making data protection easier than ever.

Even with these benefits, many small business owners still assume that cloud computing is only for large corporations. This misconception is the real limitation to adequate adoption.

How to Choose the Right Cloud Solution

To help Nigerian startups and SMEs make the most of the cloud, here are some important factors to consider when selecting a cloud provider:

• Business Needs: Does your business need storage, customer management tools, or collaboration tools? Determine your priorities.
• Budget: Compare pricing models. Some providers offer pay-as-you-go options, while others have subscription-based models.
• Scalability: Choose a provider that can scale with your business as it grows.
• Customer Support: Ensure that the provider offers excellent customer service in case of technical difficulties.
• Security: Select providers with strong security measures to protect sensitive data.

Cost-Saving Tips for SMEs Using Cloud Services

There are several strategies that can help Nigerian SMEs make the most of their cloud investments:

• Utilize Free Tiers and Trials: Take advantage of free plans and trial periods to test services without commitment.
• Start Small: Begin with basic packages and scale up as needed.
• Monitor Usage: Regularly assess cloud usage to avoid paying for unused services.
• Bundle Services: Opt for providers that offer comprehensive plans that include a variety of services.

Overcoming Challenges in Cloud Adoption

While cloud computing can greatly help businesses, several challenges need to be dealt with for Nigerian SMEs. They include:

• Internet Connectivity: Poor connectivity can limit access to cloud services. SMEs can mitigate this by selecting providers with offline-sync capabilities or partnering with reliable ISPs.
• Cybersecurity: SMEs may fear data breaches. This can be resolved by choosing recognized providers and adopting strong security practices like multi-factor authentication.
• Knowledge Gaps: Many SMEs lack the expertise to fully leverage cloud services. Offering IT training or hiring consultants can help bridge this gap.

The availability of affordable cloud solutions has enhanced operations for Nigerian startups and small businesses. Hence, with the adoption of cloud computing, operations become less expensive with easy scalability and efficiency becomes better. 

The appointment of Bedu-Mensah becomes effective Monday, December 16, 2024.

The announcement was contained in a statement issued and signed by Lars Johannisson, the chief executive officer, Rack Centre, on Tuesday, December 2, 2024.

According to Johannisson, the appointment is part of the bold move to consolidate the business growth trajectory of the company.

He said,

“We are delighted to welcome Harold to the Rack Centre team. His extensive experience and strategic mindset will be invaluable as we continue to grow and innovate. We are confident that he will play a key role in driving our financial success and achieving our long-term goals.”

Commenting on his appointment, Harold Bedu-Mensah said,

“I am honoured to join Rack Centre at such an exciting time in its journey. The company’s reputation for innovation, reliability, and sustainability is unparalleled in the West Africa region, and I look forward to contributing to its continued success. Together, we will support Rack Centre’s vision of powering Africa’s digital transformation.”

In his new role, Bedu-Mensah is expected to bring his 24 years of cognate work experience, which cut across telecommunications, pharmaceutical manufacturing, and health, to bear.

Until his elevation to the new role, he was the Head of FP&A and Strategy at Vodafone Ghana, where he was responsible for delivering finance operations targets, including financial control, finance transformation, digital finance, and quality targets for all accountabilities, and for delivering related operational efficiencies.

Prior to joining Vodafone, he was with Millicom (Tigo), for 12 years, rising through the ranks to become Corporate Finance Manager, and playing an international rolein the company’s growth working in Luxemburg, USA, London and Ghana.

A respected finance expert with notable international certificates in finance, Bedu-Mensah, holds a Master of Science in Finance, Florida International University, International Certificate in Corporate Finance Columbia Business School of New York and B.Sc. in Business Administration from Valley View University, Accra – Ghana