Data centres have become the fastest-growing real estate asset class in Lagos, according to the Lagos Real Estate Development Pipeline Report 2025/2026 Edition published by Estate Intel.
The report projects that Lagos’ total data centre capacity will exceed 218 megawatts (MW) by 2030, representing more than 3.7 times the current capacity of 78.6MW.
This growth reflects a structural shift in Nigeria’s property market as investors and developers increasingly prioritise digital infrastructure in response to surging demand for cloud services, AI, fintech, and content hosting.
Estate Intel attributes this trend to a broader macroeconomic and digital pivot in Nigeria. The report noted:
But it is the data centre sector that has outpaced all others:
As of 2025, Lagos accounts for the bulk of Nigeria’s operational and planned data centre activity.
The city currently hosts over 20 facilities with a combined capacity of 78.6MW, but with an additional 146.5MW+ under development, the pipeline alone represents a 186.37% increase over existing stock.
Several mega-projects are at the heart of Lagos’ data centre expansion. These include:
Other projects by MTN, Kasi Cloud, and Jovis Nigeria Limited are also in advanced stages of planning or construction, adding depth and competition to the market.
The report also points to international players as validation of the market’s potential stating that the entry and expansion of global operators.
For example, operators such as Equinix, Digital Realty, and Open Access Data Centres highlight Lagos’ growing appeal as a digital infrastructure hub in Africa.
Despite the sector’s bullish outlook, Estate Intel raised concerns about underutilisation in the short term.
As new facilities come online, utilisation rates have not kept pace, creating the potential for elevated vacancy levels:
Nevertheless, the report concludes that the market remains balanced, due to the strategic, long-term nature of data centre investments and Nigeria’s rising digital needs.
The report also examined Lagos’ wider property market, noting improving but uneven recovery across segments:
Despite price pressures, occupancy remained stable:
Despite price pressures, occupancy remained stable:
In the hospitality sector, over 3,700 hotel keys are expected to be delivered between 2026 and 2029.
The report noted that prolonged uncertainty in the business environment had delayed new developments in recent years, pushing completion timelines further out.
A more positive trend is expected as Nigeria’s macroeconomic indicators improve, unlocking delayed projects and stimulating new investments in hotels and serviced apartments.
Estate Intel observed modest improvements in the office segment, including rising occupancies and higher absorption rates.
It stated that most new office developments were driven by owner-occupiers rather than speculative investors, reflecting cautious sentiment despite improving market fundamentals.
The market remains tenant-led, with limited speculative builds, as developers prioritise pre-leased and build-to-suit projects.
The Estate Intel report paints a picture of a Lagos real estate market in transition —moving beyond traditional housing and office assets into future-facing sectors like data centres.