Nigeria’s data center market is poised for significant growth, projected to reach $288.8 million by 2027, according to Gbenga Adebowale, enterprise sales director for Central Africa at Vertiv. This marks a considerable increase from $131.6 million in 2022, driven primarily by the rising demand for colocation services among local businesses.
The increase in market size reflects a broader trend as companies seek reliable data solutions amid the ongoing evolution of work environments. As organizations adapt to hybrid and remote work models, the need for robust digital infrastructure has intensified, leading to increased investment in data centre capacity.
Colocation services currently account for over 50% of the market, offering businesses essential benefits such as enhanced security, convenience, and reduced power interruptions. The growth of the colocation sector aligns with a global trend, with the worldwide colocation market expected to expand at a 6.5% CAGR through 2027, ultimately reaching $136 billion by 2028.
According to Adebowale, the ongoing shifts in the market have compelled organizations to explore innovative solutions, such as prefabricated modular data centres (PFM). These facilities provide rapid deployment, customizability, and scalability, enabling companies to address their urgent capacity needs efficiently.
“Constantly changing capacity demands and the rise of compute-intensive applications like AI and machine learning are placing unprecedented pressure on data centres,” Adebowale stated. He emphasized that the adoption of prefabricated modular solutions represents a critical strategy for businesses looking to grow sustainably while managing costs.
The evolution of Nigeria’s data centre landscape highlights the increasing importance of digital infrastructure in supporting modern business operations. With the anticipated growth, local companies are expected to invest more heavily in data management solutions, solidifying Nigeria’s position as a key player in the African technology market.
As organizations continue to navigate the complexities of hybrid working arrangements, the expansion of Nigeria’s data centre market underscores a strong commitment to advancing the nation’s digital economy and ensuring businesses remain competitive in a rapidly evolving landscape.