MTN Nigeria has unveiled what it claims is the country’s largest prefabricated modular data centre, positioning itself to compete with global cloud giants like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. This strategic move targets Nigeria’s rapidly expanding $1.03 billion cloud computing market, projected to reach $3.28 billion by 2030.
The Tier III-certified facility, backed by a $120 million initial investment, delivers a 4.5MW IT load, with plans to double capacity to 9MW through a $135 million second phase. MTN’s CEO, Karl Toriola, described the data centre as “transformative for Nigeria’s technology ecosystem,” aligning with the government’s push for localized digital infrastructure.
Capitalizing on Naira Devaluation
Nigeria’s cloud market is experiencing a 26% annual growth rate, driven by widespread 5G adoption and increasing demand for AI, big data, and IoT across sectors like healthcare, finance, and retail. The naira’s 70% devaluation since June 2023 has made foreign cloud services costlier, creating an opportunity for local providers like MTN.
By offering naira-priced cloud services, MTN aims to undercut global competitors, reducing foreign exchange risks for Nigerian businesses. Toriola emphasized, “The cloud service is priced in naira, which minimizes exposure to currency volatility and improves performance with reduced latency.”
Empowering Local Businesses and Multinationals
The new data centre enables local hosting for tech developers, enterprises like banks and oil companies, and government agencies, markets traditionally dominated by foreign providers. MTN also aims to attract multinational giants such as Netflix, Facebook, and Instagram to host data locally, enhancing service quality and cutting storage costs.
Toriola noted, “Multinational companies can host a lot of their data here, improving quality of service and reducing costs.” This aligns with Nigeria’s 2019 Cloud Computing Policy, which encourages public institutions and SMEs to prioritize local cloud providers.
Reducing Sovereign Data Risks
MTN’s facility addresses concerns about data sovereignty, offering Nigerian businesses protection from risks associated with storing data in foreign jurisdictions. Toriola highlighted the centre’s role in safeguarding against “exposures to sovereign data risks in aggressive foreign states.”
The data centre also supports critical services like issuing national identity numbers and passports, providing primary or secondary backups locally. This capability strengthens Nigeria’s digital resilience, as noted by Ifeanyi Otudoh, MTN’s head of cloud solutions, who emphasized job creation in cloud engineering, cybersecurity, and facility management.
A Strategic Response to Market Dynamics
Nigeria spends over $850 million annually on foreign cloud services, a figure MTN aims to reduce by offering cost-effective, locally hosted alternatives. The company’s investment comes as competitors like AWS begin accepting naira payments to address customer concerns over forex costs.
MTN’s long-term commitment is clear, with Toriola stating, “When we say we are here to stay, it is come rain, come shine.” The company plans to expand capacity to 14MW and beyond, positioning itself as a leader in Nigeria’s cloud infrastructure.
Job Creation and AI Readiness
The data centre, which broke ground in July 2023, is designed to support Nigeria’s growing AI ecosystem, a key driver of cloud demand. Otudoh underscored its potential to “bolster the resilience of Nigerian digital services” amid global disruptions and shifting foreign policies.
Local hosting is expected to generate employment in high-skill areas like cybersecurity and cloud engineering. This aligns with MTN’s collaboration with the Nigerian Data Protection Commission and NITDA to foster a robust digital economy.
A Game-Changer for Nigeria’s Tech Landscape
MTN’s data centre, its first since 2001, marks a significant step in reducing Nigeria’s reliance on foreign cloud infrastructure. Toriola expressed pride in MTN’s leadership, stating, “We are at the forefront of technology, particularly in the data centre space.”
With its scalable infrastructure and focus on local pricing, MTN is poised to capture a significant share of Nigeria’s cloud market. This bold move not only challenges global tech giants but also sets a new standard for digital innovation in Africa’s largest economy.
