Rack Centre to open $120m Lagos hub April

Rack Centre, a carrier-neutral data centre operator, will commission its new 12-megawatt Lagos data hub on April 10, a project estimated to have cost the digital infrastructure company at least $120m.

The new Tier III data centre, known as LGS2, will significantly increase Rack Centre’s footprint in West Africa, adding 3,240 square meters of white space and six data halls, each with 2 MW IT load.

The facility will also house four Meet-Me-Rooms, providing enhanced connectivity to international, regional, and local network service providers.

Minister of Communications and Digital Economy Bosun Tijani and Lagos State Governor Babajide Sanwo-Olu are expected to attend the commissioning event.

Rack Centre, which previously operated a 1.5MW facility, said the expansion aligns with its long-term strategy to strengthen carrier-neutral connectivity and support data-driven businesses in Nigeria and beyond.

According to industry estimates, a 1MW data centre costs as much as $10m, meaning a 12MW facility would require at least $120m in investment.

“This is a triple-digit million-dollar investment, the largest of its kind in West Africa, and this is just the beginning,” Chief Executive Officer of Rack Centre Lars Johannisson said in a press conference last week.

The executive said with the commissioning of LGS2, the operator is doubling the installed base of data centre capacity in Nigeria.

“This expansion establishes us as a hyperscale-ready, AI-enabled facility designed to meet the growing demands of Nigeria’s digital economy,” he told reporters.

The Lagos hub is positioned as West Africa’s largest AI-ready data centre, equipped with energy-efficient cooling systems and sustainability-focused infrastructure. The investment underscores Rack Centre’s commitment to supporting the region’s digital transformation.

The Chief Sales and Marketing Officer at Rack Centre, Folu Aderibigbe, said the new facility would strengthen Nigeria’s data sovereignty by ensuring that data generated, stored, and processed within the country remains under national control.

He added that businesses relying on data storage and processing would benefit from lower operational costs.

“The facility will reduce capital flight by keeping data in Nigeria, eliminating the need to spend foreign currency on cloud services hosted abroad,” Aderibigbe said.

He added, “It will also enhance transaction speeds, improve reliability, and boost business resilience. Ultimately, this investment helps businesses cut costs and increase productivity.”