Nigeria’s data centre market, valued at approximately $288 million in 2025, is projected to exceed $1 billion by 2031, according to industry analysis.
Operators are rapidly expanding colocation and cloud capacity in Lagos and other urban hubs, betting not just on today’s demand but on the emergence of one of the world’s largest digital economies over the next three decades.
While often framed as a technology story, the country’s data centre expansion is fundamentally a demographics story. Africa’s largest economy is already home to more than 240 million people, and United Nations projections indicate the population could surpass 400 million by 2050, making Nigeria the world’s third most populous nation after India and China.
What makes this trajectory especially significant for investors is not just population size, but age and digital profile. Nigeria remains one of the youngest countries globally, with a median age of around 18 years, while internet penetration has surpassed 50%. This combination is creating a rapidly expanding base of mobile-first consumers entering the digital economy each year.
Nigeria’s data centre market, valued at approximately $288 million in 2025, is projected to exceed $1 billion by 2031, according to industry analysis. Image credit: Image FX.
What makes this trajectory especially significant for investors is not just population size, but age and digital profile. Nigeria remains one of the youngest countries globally, with a median age of around 18 years, while internet penetration has surpassed 50%. This combination is creating a rapidly expanding base of mobile-first consumers entering the digital economy each year.
This dynamic is fundamentally reshaping the long-term case for digital infrastructure investment. Investors are positioning for what Nigeria could become over the next two decades: one of the world’s largest digital populations, with rising demand for cloud computing, AI-enabled services, fintech platforms, streaming content, enterprise software, and sovereign data storage.
Data centre: Major players scale up infrastructure
Major operators including Equinix, MTN, Rack Center, and Open Access Data Centers are scaling infrastructure to capture what they see as long-term structural growth rather than a short-term market cycle.
In 2025, MTN announced a more than $240 million investment into a new Lagos data facility designed to support AI and cloud demand. Recent reports suggest nearly $1 billion in broader data centre investments flowing into Nigeria as companies race to expand cloud and AI infrastructure capacity.
Much of the optimism rests on the belief that Nigeria’s digital consumption curve is still in its early stages:
Fintech adoption continues to accelerate across the country
Streaming platforms are expanding local content distribution
Enterprise cloud migration remains relatively underpenetrated compared to more mature markets
At the same time, artificial intelligence is expected to dramatically increase computing and storage requirements globally, creating additional incentives to localise infrastructure closer to end users. For Nigeria, data localisation and sovereign storage are becoming increasingly strategic as governments and businesses seek greater control over where critical information is processed and stored.
Data centre: Energy remains the key challenge
Still, the opportunity comes with significant challenges. Reliable electricity supply remains one of the biggest constraints on large-scale data centre expansion in Nigeria, where operators often rely heavily on backup generation and hybrid power systems.
Connectivity improvements, regulatory clarity, and long-term energy availability will all play critical roles in determining how quickly infrastructure deployment can scale.
“Data centres are becoming critical infrastructure for Africa’s economic future, but none of this growth happens without energy,” NJ Ayuk, Executive Chairman of the African Energy Chamber, said. “Countries like Nigeria are seeing rising demand because of demographics, connectivity and digital adoption, but investors also need confidence that long-term power supply can support that expansion.”
A scale opportunity few markets can match
Nigeria’s population growth alone does not guarantee digital infrastructure success. However, when combined with rising internet penetration, fintech adoption, cloud usage, and AI-driven computing demand, it creates a scale opportunity few emerging markets can match. Investors are looking beyond today’s market to the scale Nigeria’s digital economy could reach by 2031 and beyond.
Key data points summary
| Nigeria’s current population | 240+ million |
| Projected population by 2050 | 400+ million (3rd globally) |
| Median age | ~18 years |
| Internet penetration | 50%+ |
| Data centre market value (2025) | ~$288 million |
| Projected market value (2031) | $1+ billion |
| MTN Lagos facility investment | $240+ million |
| Broader industry investment pipeline | ~$1 billion |
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The Nigeria Hydrological Services Agency (NIHSA) has issued a seven-day flood advisory, warning of a medium flood risk in 17 states between July 21 and July 27.
The agency said the alert followed rising water levels at key river monitoring stations, increasing the likelihood of localised flooding along river channels and floodplains.
NIHSA Director-General, Umar Mohammed, disclosed this in National Flood Advisory (Alert No. NFA-2026-200) issued on Tuesday.
He said the affected states are Adamawa, Bauchi, Benue, Borno, Edo, Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, Nasarawa, Niger, Plateau, Taraba, Yobe and Zamfara.
According to Mohammed, river levels at Saminara on the Karam River, Waya Dam Site on the Waya River and Amber on the Amber River had exceeded watch and warning thresholds.
He said 16 gauging stations nationwide were recording elevated river stages, placing nearby communities at risk of localised flooding.
Mohammed urged state governments, local authorities and residents of flood-prone communities to take precautionary measures immediately.
NIHSA said Bauchi had the highest exposure, with 1,841 communities, 145 schools, 101 health facilities and eight markets identified as vulnerable.
The agency also identified vulnerable communities and public facilities in Edo, Imo, Kaduna, Plateau and Benue states.
Mohammed urged the National Emergency Management Agency (NEMA), State Emergency Management Agencies (SEMAs), local governments and community leaders to activate emergency response plans.
He recommended relocating residents, livestock and valuables from floodplains to safer locations.
He also advised emergency agencies to pre-position food, medical supplies and water treatment materials in areas likely to be affected.
The NIHSA boss called for community mobilisation through early warning volunteers and local communication channels to ensure timely dissemination of flood alerts.
He cautioned residents against walking, driving or riding through flooded roads, bridges and fast-flowing waterways.
Mohammed further urged authorities to clear blocked drains, culverts and waterways to improve water flow and reduce flooding.
He advised the public and relevant agencies to monitor daily flood updates and advisories issued by NIHSA. (NAN)
The Federal Government has issued a fresh flood warning, alerting residents in 17 states to the risk of flooding over the next seven days as rising water levels continue to threaten communities across the country.
The warning was issued by the Nigeria Hydrological Services Agency (NIHSA) in its National Flood Advisory (Alert No. NFA-2026-200), covering the period from July 21 to July 27.
According to the Director-General of NIHSA, Umar Mohammed, the alert followed a steady rise in water levels at key river monitoring stations, increasing the likelihood of localised flooding along river channels and floodplains.
The states identified as being at medium flood risk are Adamawa, Bauchi, Benue, Borno, Edo, Gombe, Imo, Jigawa, Kaduna, Kano, Kebbi, Nasarawa, Niger, Plateau, Taraba, Yobe and Zamfara.
Mohammed said river levels at several critical locations had already exceeded warning thresholds, raising concerns about possible flooding in surrounding communities.
File Photo: Flooding in Nigeria
He said, “River levels at Saminaka on the Karam River, Waya Dam site on the Waya River and Amber on the Amber River had exceeded watch and warning thresholds.”
The NIHSA boss added that no fewer than 16 river gauging stations across the country were currently recording elevated water levels, placing nearby communities at risk of localised flooding if heavy rainfall continues.
He urged state governments, local authorities and residents living in flood-prone areas to begin taking precautionary measures immediately to minimise the impact of possible flooding.
Bauchi State was identified as the most vulnerable, with the agency revealing that about 1,841 communities, 145 schools, 101 health facilities and eight markets are exposed to flood risks. The agency also listed several vulnerable communities and public facilities in Edo, Imo, Kaduna, Plateau and Benue states.
Mohammed called on the National Emergency Management Agency (NEMA), State Emergency Management Agencies (SEMAs), local government authorities and community leaders to activate emergency preparedness and response plans without delay.
He recommended that residents living on floodplains relocate to safer areas, taking along their families, livestock and valuables before floodwaters rise.
The NIHSA Director-General also advised emergency agencies to pre-position food supplies, medical materials and water treatment equipment in communities likely to be affected to ensure a quicker response if flooding occurs.
He stressed the need for early warning systems to reach vulnerable communities, urging authorities to mobilise local volunteers and utilise community communication channels to spread flood alerts promptly.
Mohammed also warned residents against attempting to walk, drive or ride through flooded roads, bridges and fast-flowing waterways, noting that such actions could result in avoidable loss of lives.
He further urged relevant authorities to clear blocked drains, culverts and waterways to improve the free flow of water and reduce the risk of flooding during the rainy season.
The latest advisory comes as Nigeria continues to experience heavy rainfall across several parts of the country, with recent flooding affecting communities in Lagos and other states. According to data from the National Emergency Management Agency, floods in 2025 claimed 232 lives, injured more than 600 people, affected over 315,000 residents, displaced more than 113,000 people and destroyed thousands of homes and hectares of farmland.
Mohammed advised both government agencies and members of the public to continue monitoring daily flood forecasts and advisories issued by NIHSA throughout the rainy season.