As artificial intelligence (AI) continues to transform industries, its rapid adoption is driving an unprecedented rise in data center energy consumption. With Nigeria’s digital economy expanding and the demand for high-performance computing increasing, stakeholders must take decisive steps to integrate sustainability into data center operations.
According to Deloitte, data centers will account for 2 percent of global electricity consumption by 2025, amounting to approximately 536 terawatt-hours (TWh). This figure is expected to double within the next five years to 1,065 TWh, fueled by AI and other high-energy applications.
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Investment in mission-critical infrastructure is fueling this growth. The global data center market size is calculated at $125.35 billion in 2024 and is projected to rise to $364.62 billion by 2034, with a CAGR of 11.39 percent over that period, largely driven by gen AI. While this growth unlocks new possibilities for industries and communities across the world, it also poses significant sustainability challenges. The growth trajectory underscores the need to reimagine not only how data centers source, manage, and consume energy, but also how their underlying infrastructure is sourced, managed and consumed.
“The best time to act on sustainability was years ago; the second-best time is now,” said Ajibola Akindele, Country president, Schneider Electric, Anglophone West Africa. “As AI accelerates demand for data processing and storage in Nigeria, immediate action is needed to reduce energy consumption and emissions. By integrating sustainable strategies and leveraging AI-driven optimizations, businesses can drive long-term efficiency while contributing to a greener future.”
As Nigeria embraces digital transformation, data center operators, businesses, and policymakers must collaborate to mitigate AI’s environmental impact while maximizing its benefits.
The Need for Sustainable Data Centers
AI is reshaping industries, improving productivity, and is projected to contribute $15.7 trillion to the global economy by 2030—more than the combined economies of China and India. However, AI workloads consume significantly more power, generate more heat, and require advanced cooling systems, increasing energy demand and carbon emissions. If left unchecked, these trends could strain Nigeria’s already overburdened power grid and hinder the country’s sustainability goals; achieving net-zero emissions by 2060.
To address these challenges, Nigerian data center operators and industry leaders must focus on three key areas: enhancing sustainability strategies to mitigate AI’s environmental impact, tackling Scope 3 emissions, and ensuring compliance with evolving regulatory frameworks.
Six Practical Solutions for a Sustainable Future
Assess Existing Infrastructure and Processes for Efficiency Gains – Conducting energy audits to identify inefficiencies in cooling systems, server utilization, and power management can lead to substantial energy savings.
Adopt Energy-Efficient Infrastructure – Upgrading to modern servers, deploying liquid cooling technologies, and incorporating renewable energy sources will significantly reduce carbon footprints. Retrofitting older data centers with advanced solutions can improve efficiency and sustainability.
Partner with suppliers who prioritize decarbonizing their supply chain and mitigating Scope 3 emissions– A large portion of emissions stem from the supply chain. Nigerian businesses should work with suppliers committed to reducing Scope 3 emissions and implementing sustainable manufacturing practices.
Utilise Advanced Reporting Tools – Real-time energy monitoring and automation tools help operators track and optimize energy use, ensuring compliance with regulatory standards and corporate sustainability targets.
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Optimise resource allocation with AI and machine learning- AI can help solve the very challenge it creates. Machine learning algorithms can optimize energy distribution, predict maintenance needs, and integrate renewable energy sources, reducing dependence on fossil fuels.
Continuously reassess and improve – Sustainability requires an ongoing commitment. Nigerian data center operators must regularly reassess their strategies, benchmark against global best practices, and adopt cutting-edge solutions to remain on track.
With sustainability now a key consideration for investors, regulators, and consumers alike, Nigerian enterprises that embrace these strategies will be better positioned to lead in the digital economy. For organizations lacking the expertise or resources to implement these solutions, partnering with sustainability-focused vendors can help develop and execute a robust plan.