Lagos, Nigeria’s economic hub, is experiencing a surge in data centre investments, with global investors pouring capital into the city’s affluent neighborhoods, Victoria Island and Lekki Peninsula.
The city’s proximity to eight submarine internet cables makes it an ideal location for data centres, with Lagos Island poised to become Africa’s second-largest data center hub.
The scramble for Lagos’ coastline highlights the promise and pitfalls of betting on Africa’s fragmented data economy.
Data centres built near submarine cable landing stations can reduce delays and improve speed and efficiency. Coastal data centers also serve as backup hubs, ensuring network continuity in case of inland connection disruptions.
Google’s Equiano submarine cable, with a capacity of up to 144 terabits per second, lands at Open Access Data Centre’s (OADC) Tier III-certified facility in Lekki. Similarly, the MainOne submarine cable is directly connected to the MDXi data center, MainOne’s Tier III-certified facility in Lekki.
Nigeria’s eight submarine cables make landfall along the Lagos Island coastline, connecting to terrestrial fiber-optic networks for broader distribution.
Ten of Nigeria’s 16 data centres are concentrated in Victoria Island, Lekki, and Eko Atlantic City, with operators racing to add more capacity.
New data centres under construction include Equinix’s 20MW facility, Kasi’s 5MW center, Nxtra by Airtel’s 38MW data center, and Open Access Data Centre’s 24MW facility, all slated for completion by 2027.
These developments will expand Nigeria’s total capacity from 64MW to approximately 200MW.
The increased capacity will reduce delays, enhance cloud services, streaming, and online gaming performance, and improve network reliability.
Investors are drawn to Lagos’ improving power infrastructure, with Victoria Island and Lekki designated “Band A” service areas, ensuring 20 to 24 hours of electricity daily.
Access to water for cooling systems is another reason for choosing coastal areas. The increasing investment in Lagos’ data centres reflects a global urbanization wave, with the United Nations projecting that 66% of the global population will live in cities by 2050.
Eko Atlantic, a cutting-edge smart city, has attracted major data centre investments, hosting two hyperscale facilities.
As Lagos’ coastline remains a hot spot for data centre investments, investors must navigate the challenges and opportunities presented by this growing market. /Story idea: Tech Cabal