The Nigeria Data Center Market report thoroughly covers the market by types, verticals, and regions. The report provides an unbiased and detailed analysis of the ongoing market trends, opportunities/high growth areas and market drivers which would help the stakeholders to devise and align their market strategies according to the current and future market dynamics.
Latest 2023 Development of the Nigeria Data Center Market
Nigeria Data Center Market has been growing steadily in recent years and the market is being driven by increasing demand for digital services and the need for reliable data storage and processing infrastructure. The investment in new data centre facilities is further contributing to the development of this market. Moreover, cloud services are becoming increasingly popular in Nigeria. In addition, the Data centre providers in Nigeria are gradually partnering with local and international technology companies to offer a wider range of services to customers. The data centre industry in Nigeria is experiencing tremendous growth on the back of increasing demand for data storage. With the rise of the digital economy and the growth of internet usage in Nigeria, there is a growing need for data storage and processing.
Moreover, the government is investing heavily in the development of the country's digital infrastructure, including data centres which have further created a favourable environment for data centre operators. The emergence of technology trends such as cloud computing, artificial intelligence, and the Internet of Things (IoT) is driving demand for data centre services in Nigeria. Thereby, the demand for data centre services is likely to grow further in the upcoming years.
Nigeria Data Center Market Synopsis
Nigeria data centre market witnessed decent growth in 2017-2019 owing to several government initiatives such as Nigeria vision 2020 and Nigeria ICT Roadmap 2017–2020 which aimed at improving ICT infrastructure in the country along with promoting e-governance, e-commerce, digital banking, and others which significantly contributed towards the market of a data centre.
Social distancing norms implemented in the region due to the Covid-19 pandemic in 2020 acted as a catalyst in the growth of telehealthcare, remote working, e-learning and other digital platforms, which resulted in increased data traffic. According to the data from the Nigerian Communications Commission, the number of internet subscribers rose by 2.5 million in April and with a similar number in May, overall internet subscriber figures went up by ~5 million. The role of data centres got widened by the surge in data traffic, data storage and processing requirements.
According to 6Wresearch, the Nigeria Data Center Market size is projected to grow at a CAGR of 17.9% during 2021-2027. Nigeria data centre market is likely to experience rapid growth in the forecast period on account of multiple initiatives launched by the government such as the National Digital Economy Policy and Strategy (2020-2030), Cloud Computing Policy (2019), National Broadband Plan (2020-2025), Smart city initiative combined with the upcoming rollout of 5G technology and growing tech ecosystem in the country. Nigeria’s tech start-ups received $701.5 million in funding in 2020, one of the highest in Africa, of which fintech start-ups accounted for 44% of the start-up investments. The number of fintech start-ups in Nigeria also grew from 74 in 2017 to 144 in 2021. Government initiatives coupled with a growing tech ecosystem would create opportunities for the data centre market in the coming years.
Market by Type Analysis
In terms of types, the segments colocation and cloud data centre cumulatively have captured 74% of the market revenues in 2020, with colocation data centers leading the market. Colocation data centers dominated the Nigeria data centre market revenues for the year 2020 and the same trend is expected to continue in the future on account of increasing awareness among business executives about the security of their IT infrastructure, due to frequent power cuts in Nigeria causing financial losses and operational disruptions. This is driving the companies toward colocations services as it provides redundant power supply, better security, and scalability at a lower price.
Market by Application Analysis
In Nigeria Data Center Market, the telecom & IT verticals have led the overall market revenues accounting for more than 45% of the market revenues in 2020. Telecom & IT applications captured a key share of the market pie, led by growing internet penetration, adoption of modern technologies and digitization initiatives are taken by the government.
Key Attractiveness of the Report
- COVID-19 Impact on the Market.
- 10 Years Market Numbers.
- Historical Data Starting from 2017 to 2020.
- Base Year: 2020
- Forecast Data until 2027.
- Key Performance Indicators Impacting the Market.
- Major Upcoming Developments and Projects.
Key Highlights of the Report:
- Nigeria Data Center Market Overview
- Nigeria Data Center Market Outlook
- Nigeria Data Center Market Forecast
- Historical Data and Forecast of Nigeria Data Center Market Revenues for the Period 2017-2027F
- Historical Data and Forecast of Revenues, By Types, Verticals, and Regions for the Period 2017-2027F
- Market Drivers and Restraints
- Nigeria Data Center Market Trends and Industry Life Cycle
- Porter’s Five Force Analysis
- Market Opportunity Assessment
- Nigeria Data Center Market Revenue Ranking, By Company
- Nigeria Data Center Market – Impact of Local Policies
- Nigeria Data Center Market – Analysis of Data Center Requirement of Tenants in Colocation Scenarios
- Nigeria Data Center Market – Analysis of User Engagement
- Nigeria Data Center Market – Existing Gap Analysis, Capacity Vs Requirement
- Competitive Benchmarking
- Company Profiles
- Key Strategic Recommendations
Market Scope and Segmentation
The report provides a detailed analysis of the following market segments:
By Types:
- Colocation Data Center
- Cloud Data Center
- Managed Services Data Center
- Enterprise Data Center
By Verticals:
- Telecom & IT
- BFSI
- Government
- Healthcare
- Education
- Others
By Regions:
- Southwest
- Central
- Southeast
- Northwest
- Northeast
