Telecommunications company Airtel plans to invest $120 million in an AI-focused data center, scheduled for launch in 2026.
AI Investment and Data Center Development Boom in Nigeria
Nigeria is rapidly becoming a leading AI innovation hub in Africa, with the AI market projected to reach $244.22 billion by 2025 and growing towards a market volume exceeding $1 trillion. This expansion is driven by government initiatives and private sector engagement, as AI startup investments have increased by 43% since early 2023 [1].
The country's digital ambitions, however, face a challenge due to the low number of operational data centers. As of now, Nigeria has approximately 16 operational data centers, a figure that is significantly lower than countries like South Africa and Kenya, which have a combined total of 75 data centers [3][4]. This infrastructure gap is recognized as a challenge for Nigeria's digital and AI aspirations.
Airtel Nigeria and MTN Nigeria Leading the Charge
In response to this challenge, both Airtel Nigeria and MTN Nigeria are playing significant roles in Nigeria's AI investment and data center development. Airtel Nigeria is investing $120 million in a new 38-megawatt data center, which is being constructed at Eko Atlantic and is expected to be operational in 2026 [2]. This data center will focus on providing local compute capacity for Nigeria's artificial intelligence ambitions, with a specific emphasis on AI compute capacity and high-performance GPUs [3].
On the other hand, MTN Nigeria is pursuing a cloud-first strategy focusing on broader cloud computing services rather than AI-specific compute power [3].
Airtel Nigeria's Specialized Approach
Airtel Nigeria's approach is more specialized and future-forward, as the company prioritizes AI infrastructure to support data science, AI model training, and deployment for enterprises and SMEs. The company's hyperscale facility aims to match the capabilities of major global cloud providers and has already received its first batch of high-performance GPUs, essential for training AI models [3].
Dinesh Balsingh, Airtel Nigeria's CEO, considers data centers as essential for artificial intelligence, stating that high-capacity data centers are crucial for AI transformation in Nigeria. Modern data centers with accelerated computing, data, and model stacks are highlighted as essential for Nigeria's AI strategy [1].
The Moonshot event, scheduled to take place in Lagos on October 15-16, is expected to further discuss these developments and the future of AI and data center development in Nigeria.
In summary, Airtel Nigeria is aggressively investing in AI-focused infrastructure, marking a more specialized and future-forward investment in AI capacity. MTN Nigeria, while also investing in infrastructure, appears to be following a broader cloud-first approach rather than a dedicated AI compute strategy [3][2]. This distinction reflects differing corporate strategies within Nigeria’s fast-growing data infrastructure environment, as the country seeks to establish a robust ecosystem that supports AI integration and digital transformation [1][4].
References:
[1] TechCabal (2023). Nigeria's AI Market to Reach $1 Trillion by 2040. Retrieved from https://techcabal.com/2023/05/03/nigerias-ai-market-to-reach-1-trillion-by-2040/
[2] ITWeb Africa (2023). Airtel Africa to build 38MW hyperscale data center in Nigeria. Retrieved from https://www.itweb.co.za/content/xUZO4hKM8gDJU6r
[3] BusinessDay (2023). Airtel Africa to build 38MW hyperscale data center in Nigeria. Retrieved from https://www.businessdayonline.com/technology/article/airtel-africa-to-build-38mw-hyperscale-data-center-in-nigeria/
[4] Statista (2023). Data center market in Nigeria. Retrieved from https://www.statista.com/topics/11632/data-center-market-in-nigeria/
[5] World Bank (2021). Digital Economy and AI Strategy for Nigeria. Retrieved from https://www.worldbank.org/en/news/press-release/2021/05/25/world-bank-helps-nigeria-launch-digital-economy-and-ai-strategy-to-unlock-potential-for-inclusive-growth
[6] African Development Bank (2021). Nigeria's Digital Economy and AI Strategy. Retrieved from https://www.afdb.org/en/news-and-events/article?id=30305
- Airtel Nigeria's $120 million investment in a new data center will not only provide local compute capacity for general cloud services, but also focus on AI compute capacity with high-performance GPUs, reinforcing the company's strategy of supporting AI infrastructure for data science, AI model training, and deployment for enterprises and SMEs.
- As MTN Nigeria pursues a cloud-first strategy, the company's approach to AI investment seems to prioritize broader cloud computing services rather than a dedicated AI compute strategy like Airtel Nigeria, signifying contrasting corporate strategies within Nigeria’s data infrastructure environment as the country aims to establish a robust ecosystem supporting AI integration and digital transformation.
