Posted On: 2022-01-21
Telecom & IT acquired the largest market revenue share among all the verticals in the overall Nigeria data center market – 6Wresearch
Nigeria data center market has witness tremendous growth due to rapid transformation in telecom and digital sector owing to government initiatives such as National Digital Economy Policy and Cloud Computing Policy that promote the adoption of emerging technologies such as artificial intelligence, machine learning, blockchain, IoT and others. In last two years, Nigeria’s Federal Government has established 1,667 technological centers for the adoption and promotion of these technologies. Further, Nigeria’s National Information Technology Development Agency (NITDA) is developing a framework to promote the adoption of blockchain technology with an aim to generate $10 billion in revenues by 2030. Adoption of emerging technologies is expected to create a market for data centers in the country since these technologies require high computing power to launch several applications and storage space to host large volume of data that they generate.
According to 6Wresearch, Nigeria Data Center Market size is projected to grow at a CAGR of 17.9% during 2021-2027. Nigeria data center market is expected to grow at a healthy rate owing to the growing tech ecosystem in the country. The Centre for Artificial Intelligence and Robotics was established by government of Nigeria in 2020 with an objective to facilitate innovation, research, and development. The centre is expected to serve as knowledge transfer, and training hub in the areas of Artificial Intelligence (AI), Robotics and other emerging technologies. Additionally, Nigeria’s tech start-ups received $701.5 million in funding in 2020, one of the highest in Africa. Technological advancements by a growing start-up ecosystem would have a positive impact on data center market of Nigeria in the coming years.
According to Eshita Goel, Assistant Manager, 6Wresearch, “By region, Southwest region acquired the largest market share in 2020 and would continue to do so in the future owing to the availability of advance infrastructure such as fiber cable connection and accessibility of cable landing stations. Further, as of 2020, Lagos also has the highest number of tech start-ups in the country with 400 start-ups valued at $2 billion. Proximity to the customers coupled with good infrastructure facilities would drive data center market in Southwest region in the years to come.
According to Dhaval Chaurasia, Research Associate, 6Wresearch, “In the recent past, colocation data center contributed a major chunk of revenues in Nigeria data market and the similar trend is expected to continue in the coming years owing to higher cost associated with running an enterprise data center which is driving organizations towards colocation service providers. Organizations save around 20-70% of operating cost depending upon the service they avail compared to enterprise data center. Further, frequent power cuts in Nigeria coupled with rising awareness about the security and management of IT infrastructure would drive colocation data center market in Nigeria in the future.
Some of the major companies in Nigeria data center market include MainOne, Rack Centre, MTN Group, 21st Century Technologies and Medallion Communications Inc.
Nigeria data center market (2021-2027)” report provides an in-depth analysis with 21 figures and 7 tables, covered in 89 pages. The report estimates and forecast the overall Nigeria data center market by types, by verticals, and by regions. The report provides an unbiased and detailed analysis of the on-going 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.