Lagos, a metropolis of over 20 million people, is strengthening its position as Nigeria’s technology nerve centre, steadily expanding its data centre footprint to align with Africa’s broader digital infrastructure network.
Nigeria’s commercial hub drives most of the country’s 16 operational data centres, including Google, MDXi (MainOne by Equinix) and Africa Data Centres, within a continental field of 59 to over 100 facilities delivering 308 MW, led by South Africa.
The Nigerian data centre market, valued at $648.4m in 2023, is projected to reach $972.53m by 2032, according to Credence Research, a global market research and counselling firm. Much of this growth is being driven by Lagos, buoyed by rising demand for colocation and cloud services.
Last week, the city’s capacity grew with the launch of Rack Centre’s LGS2, a 12 MW facility—the largest in West Africa—designed for energy efficiency and scale to serve enterprises, cloud providers, and financial firms.
While South Africa remains Africa’s data leader, Lagos is emerging as a key player, said industry observers. Open Access Data Centres, part of WIOCC Group, bolstered the trend with a $240m commitment last month to build 24MW by 2027, eyeing Lagos’ economic pull.
“The new facility (Rack Centre) represents a leap in the shared ambition to make Lagos a smart, globally competitive digital hub,” said Governor Babajide Sanwo-Olu, who was represented by the Deputy Chief of Staff, Sam Egube.
“By investing in such advanced technology, we are attracting investors from across the globe who see Lagos not just as a city but as a hub of innovation and digital transformation,” Sanwo-Olu added.
Lagos is currently witnessing the construction of four other data centres and also investing heavily in digital infrastructure with the development of a fibre-optic network spanning approximately 6,800 kilometres across the state.
The first phase of this ambitious project, covering 3,500 kilometres, has already been completed to enhance bandwidth penetration throughout Lagos.
With the new Rack Centre facility now operational, the company’s data centre capacity has increased eightfold—solidifying its position as a leading digital infrastructure hub in sub-Saharan Africa.
“It is important to note that Rack Centre is the only data centre located on Lagos Mainland, and with its proximity to critical government apparatus,” Chairman of Rack Centre, Maher Jamarkani, said in a statement shared with The PUNCH.
The chairman revealed that the 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 added.
The newly commissioned facility, according to Rack Centre CEO Lars Johannisson, marks a significant milestone in Nigeria’s digital transformation.
“This facility represents a crucial piece in the growing digital system in Lagos, Nigeria, and places Lagos in the absolute forefront of data centre technology, innovation, and ecosystem,” the CEO said.
By the end of 2025, Lagos is projected to add 180 megawatts of power capacity to its data centre infrastructure, accounting for nearly 70 per cent of Nigeria’s upcoming capacity.
Yet, at 70 MW today, the state still falls far short of the 600 MW needed to meet both local and global demand—a gap, according to the CEO of Geniserve. Gbenga Adegbiji says it deters hyperscalers like Microsoft and Amazon from fully rolling out cloud services in the region.
“We need more data centres, strategically placed near robust networks,” he told The PUNCH. “Without connectivity, a data centre is just a warehouse.”