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Nigeria Data Center Market - Investment Analysis & Growth Opportunities 2022-2027

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    Report

  • 93 Pages
  • January 2023
  • Region: Nigeria
  • Arizton
  • ID: 5714622
1h Free Analyst Time
1h Free Analyst Time

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Nigeria data center market is expected to grow at a CAGR of 13.02% during 2022-2027. The growth of the Nigeria data center market is attributed to factors such as the launch of 5G, the interest shown in the market by global operators such as Equinix and Digital Realty, the shift from on-premise facilities to the cloud and colocation data center by enterprises, among other factors.

Implementing the Nigeria Data Protection Regulation (NDPR) will also be a significant driver for the country's increase in data center development, resulting in data localization initiatives and an increase in local data storage and computation requirements. The future demand for data centers, especially from a colocation perspective, will come from sectors such as cloud and large technology companies to expand their operations in Western Africa. The Renewable Energy Master Plan (REMP) in Nigeria aims to increase the share of renewable energy in the overall energy mix to 23% in 2025 and 36% in 2030.

KEY HIGHLIGHTS

  • The country is the largest ICT market in Africa, accounting for 29% of internet usage. Commercial 5G was launched in the country in September 2022 by MTN Nigeria, which will further contribute to internet penetration in the country.
  • The average utilization for Nigeria-based colocation centers is 50-60%. Operators are currently witnessing demand from cloud operators, large technology companies, as well as from BFSI, content service providers, and telecom sectors, which will drive future colocation demand in the country.
  • Currently, 80% of the power generated in Nigeria is via natural gas, with much of the remaining being generated via coal. Nigeria is currently the largest user of oil-fired backup generators in Africa.
  • In September 2022, The Nigerian Government signed an LOI with seven companies, namely Iron Mountain, AB InBev, HP, Akamai, Rife International, Lady Lawyer Foundation, and Unilever, for the clean energy transition in Nigeria. This initiative is named The Clean Energy Demand Initiative (CEDI).
  • The Nigerian government has launched a ‘Solar Power Naija’ project, a program aiming for 5 million solar connections for off-grid communities as part of the Economic Sustainability Plan.
WHY SHOULD YOU BUY THIS RESEARCH?
  • Market size available in the investment, area, power capacity, and the Nigeria colocation market revenue.
  • An assessment of the investment in Nigeria by colocation and enterprise operators.
  • Investments in the area (square feet) and power capacity (MW) across locations in the country.
  • A detailed study of the existing market landscape, an in-depth industry analysis, and insightful predictions about the Nigeria data center market size during the forecast period.
  • Snapshot of existing and upcoming third-party data center facilities in Nigeria
  • Facilities Covered (Existing): 13
  • Facilities Identified (Upcoming): 8
  • Coverage: 2+ Cities
  • Existing vs. Upcoming (Area)
  • Existing vs. Upcoming (IT Load Capacity)
  • Data center colocation market in Nigeria
  • Market Revenue & Forecast (2021-2027)
  • Wholesale vs. Retail Revenue & Forecast (2021-2027)
  • Retail Colocation Pricing
  • Wholesale Colocation Pricing
  • The Nigeria market landscape investments are classified into IT, power, cooling, and general construction services with sizing and forecast.
  • A comprehensive analysis of the latest trends, growth rate, potential opportunities, growth restraints, and prospects for the industry.
  • Business overview and product offerings of prominent IT infrastructure providers, construction contractors, support infrastructure providers, and investors operating in the industry.
  • A transparent research methodology and the analysis of the demand and supply aspects of the market.

VENDOR LANDSCAPE

  • Rack Centres, Equinix (MainOne), Digital Realty (Medallion Communications), 21st Century Technology, and Galaxy Backbone are some colocation operators currently operating facilities in the country.
  • The Nigeria data center market is witnessing investments by new entrants such as Africa Data Centres, Kasi Cloud, and Airtel Data Centres, which have recently opened or are in the process of developing new facilities in the country.
  • In 2021, the fiber network company WIOCC announced the incorporation of Open Access Data Centres (OADC) to set up data centers in Africa, with a planned investment of over USD 500 million over the next five years. OADC is setting up a data center in Lekki, Nigeria.
  • Arup has worked on designing the LGS2 data center of Rack Centres, adding around 13 MW of IT load and around 65,000 square feet of area.
  • Global operators are increasingly showing interest in the country’s market. For instance, the acquisition of Medallion Data Centres by Digital Realty and Equinix acquiring MainOne (MDX-I).

Major Vendors

IT Infrastructure Providers

  • Arista Networks
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • Juniper Networks
  • IBM
  • Lenovo
  • NetApp

Data Center Construction Contractors & Sub-Contractors

  • Arup
  • CAP DC
  • Edarat Group
  • Future-tech
  • Interkel Group
  • JLB Architects
  • NLE

Support Infrastructure Providers

  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Envicool
  • Legrand
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • STULZ
  • Vertiv Group

Data Center Investors

  • 21st Century Technology
  • Africa Data Centres
  • Galaxy Backbone
  • MDX-i (Equinix)
  • Medallion Communications (Digital Realty)
  • Rack Centre

New Entrants

  • Airtel Nigeria
  • Kasi Cloud
  • Open Access Data Centres (OADC)

EXISTING VS. UPCOMING DATA CENTERS

  • Existing Facilities in the region (Area and Power Capacity)
  • Lagos
  • Other Cities
  • List of Upcoming Facilities in the region (Area and Power Capacity)

REPORT COVERAGE:

This report analyses the Nigeria data center market share. It elaboratively analyses the existing and upcoming facilities and investments in IT, electrical, mechanical infrastructure, general construction, and tier standards. It discusses market sizing and investment estimation for different segments. The

segmentation includes:

  • IT Infrastructure
  • Servers
  • Storage Systems
  • Network Infrastructure
  • Electrical Infrastructure
  • UPS Systems
  • Generators
  • Transfer Switches & Switchgears
  • PDUs
  • Other Electrical Infrastructure
  • Mechanical Infrastructure
  • Cooling Systems
  • Rack Cabinets
  • Other Mechanical Infrastructure
  • Cooling Systems
  • CRAC & CRAH Units
  • Chiller Units
  • Cooling Towers, Condensers & Dry Coolers
  • Economizers & Evaporative Coolers
  • Other Cooling Units
  • General Construction
  • Core & Shell Development
  • Installation & commissioning Services
  • Engineering & Building Design
  • Fire Detection & Suppression Systems
  • Physical Security
  • Data Center Infrastructure Management (DCIM)
  • Tier Standard
  • Tier I & Tier II
  • Tier III
  • Tier IV

KEY QUESTIONS ANSWERED

1. How much is the Nigeria data center market investment expected to grow?
2. How many data centers have been identified in Nigeria?
3. What are the driving factors for Nigeria data center market?
4. What is the growth rate of the Nigeria data center market?
5. Who are the key investors in the Nigeria data center market?
Frequently Asked Questions about the Nigerian Data Center Market

What is the estimated value of the Nigerian Data Center Market?

The Nigerian Data Center Market was estimated to be valued at $244.8 Million in 2021.

What is the growth rate of the Nigerian Data Center Market?

The growth rate of the Nigerian Data Center Market is 13.0%, with an estimated value of $510.4 Million by 2027.

What is the forecasted size of the Nigerian Data Center Market?

The Nigerian Data Center Market is estimated to be worth $510.4 Million by 2027.

Who are the key companies in the Nigerian Data Center Market?

Key companies in the Nigerian Data Center Market include Arista Networks, Broadcom, Cisco Systems, Dell Technologies, Hewlett Packard Enterprise, Huawei Technologies, Juniper Networks, IBM and NetApp.

Table of Contents

1. Existing & Upcoming Third-Party Data Centers in the Nigeria
1.1. Historical Market Scenario
1.2. 20+ Unique Data Center Properties
1.3. Data Center It Load Capacity
1.4. Data Center White Floor Area
1.5. Existing Vs Upcoming Data Center Capacity by Cities
1.6. Cities Covered
1.6.1. Lagos
1.6.2. Abuja
1.7. List of Upcoming Data Center Facilities

2. Investment Opportunities in Nigeria
2.1. Microeconomic and Macroeconomic Factors of the Nigeria Market
2.2. Investment Opportunities in the Nigeria
2.3. Investment by Area
2.4. Investment by Power Capacity

3. Data Center Colocation Market in Nigeria
3.1. Colocation Services Market in the Nigeria
3.2. Retail Data Center Colocation
3.3. Colocation Pricing (Quarter Rack, Half Rack, Full Rack) & Add-Ons

4. Market Dynamics
4.1. Market Drivers
4.2. Market Trends
4.3. Market Restraints

5. Market Segmentation
5.1. It Infrastructure: Market Size & Forecast
5.2. Electrical Infrastructure: Market Size & Forecast
5.3. Mechanical Infrastructure: Market Size & Forecast
5.4. General Construction Services: Market Size & Forecast

6. Tier Standard Investment
6.1. Tier I & Ii
6.2. Tier Iii
6.3. Tier Iv

7. Key Market Participants
7.1. It Infrastructure Providers
7.2. Construction Contractors
7.3. Support Infrastructure Providers
7.4. Data Center Investors
7.5. New Entrants

8. Appendix
8.1. Market Derivation
8.2. Quantitative Summary

Companies Mentioned

  • Arista Networks
  • Broadcom
  • Cisco Systems
  • Dell Technologies
  • Hewlett Packard Enterprise
  • Huawei Technologies
  • Juniper Networks
  • IBM
  • Lenovo
  • NetApp
  • Arup
  • CAP DC
  • Edarat Group
  • Future-tech
  • Interkel Group
  • JLB Architects
  • NLE
  • ABB
  • Caterpillar
  • Cummins
  • Eaton
  • Envicool
  • Legrand
  • Rittal
  • Rolls-Royce
  • Schneider Electric
  • Siemens
  • STULZ
  • Vertiv Group
  • 21st Century Technology
  • Africa Data Centres
  • Galaxy Backbone
  • MDX-i (Equinix)
  • Medallion Communications (Digital Realty)
  • Rack Centre
  • Airtel Nigeria
  • Kasi Cloud
  • Open Access Data Centres (OADC)

Methodology


Our research comprises a mix of primary and secondary research. The secondary research sources that are typically referred to include, but are not limited to, company websites, annual reports, financial reports, company pipeline charts, broker reports, investor presentations and SEC filings, journals and conferences, internal proprietary databases, news articles, press releases, and webcasts specific to the companies operating in any given market.

Primary research involves email interactions with the industry participants across major geographies. The participants who typically take part in such a process include, but are not limited to, CEOs, VPs, business development managers, market intelligence managers, and national sales managers. We primarily rely on internal research work and internal databases that we have populated over the years. We cross-verify our secondary research findings with the primary respondents participating in the study.



 

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