Telecommunications giant Airtel invests in AI with a $120 million data center scheduled for operation in 2026.
Nigeria Boosts AI-Focused Data Center Infrastructure, Trails Behind Regional Leaders
As of 2025, Nigeria is rapidly developing AI-focused data center infrastructure but still trails behind regional leaders like South Africa and Kenya. Airtel Nigeria is investing $120 million in a hyperscale, AI-optimized 38-megawatt data center at Eko Atlantic, Lagos, expected online in 2026, equipped with high-performance GPUs specifically for AI workloads[1][2]. Additionally, Itana has launched the continent's first full-stack AI zone near Lagos, focusing on AI compute, data infrastructure, and talent development for both foundational and applied AI models[3].
Compared to Nigeria's 17 data centers (mostly in Lagos), South Africa and Kenya have more established and greater capacities. South Africa hosts 56 data centers broadly distributed, while Kenya has 19, including highly sustainable green-data center projects like the upcoming 100 MW Microsoft-G42 facility powered by geothermal energy in Naivasha[5]. South Africa and Kenya benefit from more stable power grids and investments in renewables which address critical energy and water challenges faced by Nigeria's data centers, which rely heavily on backup diesel generators due to Nigeria's unreliable power supply[4][5].
Nigeria’s AI-focused infrastructure remains nascent with just 16–17 operational centers versus about 75 combined in South Africa and Kenya[1][5]. Nigeria’s 2024 National AI Strategy underscores the need for AI-ready compute infrastructure, prompting recent investments by telcos and startups, but significant challenges remain in scaling reliable electricity and cooling infrastructure to support AI's high energy and water demands[1][4][5].
Comparing the Data Center Landscapes
| Aspect | Nigeria | South Africa | Kenya | |-------------------------|---------------------------------|---------------------------------|--------------------------------------------| | Data Centers (2025) | ~17 (mostly Lagos) | 56 | 19 | | AI-specific initiatives | $120M Airtel AI hyperscale centre (Eko Atlantic, 2026); Itana full-stack AI zone | Larger existing general data center market; growing AI deployment | Planned 100 MW green AI data center (Microsoft-G42), renewable-heavy power grid | | Energy reliability | Poor grid; diesel backup needed | More stable grid; mixed energy | 60%+ renewable energy; geothermal in Naivasha | | AI infrastructure focus | Emerging, driven by telcos and startups | Mature market, regional hub | Focus on sustainable, green infrastructure |
Nigeria is emerging as a promising AI hub with significant investments underway but still faces infrastructure challenges in power stability and sustainability that South Africa and Kenya have better addressed, positioning those countries ahead currently in AI-ready data center capacity and sustainability[1][4][5]. Nigeria's rapid development plans aim to catch up by 2026–2027 with specialized AI compute centers and integrated AI ecosystems[1][3].
Investments in the Nigerian Cloud Market
Fresh investment in data centers is being made by players including Airtel, MTN, and Equinix. The Nigerian cloud market is currently valued at around $1 billion. Modern data centers with accelerated computing, data, and model stacks are highlighted as crucial for Nigeria's AI infrastructure needs. Nigeria currently has approximately 16 operational data centers.
Africa has 1% of the global digital infrastructure while having 17% of the world's population and 4% of the global GDP, according to Ayotunde Coker, CEO of Open Access Data Centres (OADC). The value of the cloud storage capacity provided by Airtel's data center strategy is considered a small part compared to its focus on AI compute capacity.
[1] TechCabal [2] BusinessDay [3] Itana [4] TechCabal [5] Microsoft
- Despite Nigeria's rapid development of AI-focused data center infrastructure, the country's 16 operational centers are overshadowed by the 75 combined in South Africa and Kenya.
- In an effort to bridge this gap, Nigeria is attracting investments in the cloud market by companies such as Airtel, MTN, and Equinix, with a focus on creating modern data centers equipped for accelerated computing and AI workloads.
- As Africa aims to increase its digital infrastructure to better represent its 17% of the world's population and 4% of the global GDP, Nigeria seeks to expand its AI-focused data center infrastructure with investments in technology, particularly in artificial intelligence.
