Nigeria data center market is in the growing stage, driven by internet penetration and launch of 5G network: Ken Research

 COVID-19 accelerated data consumption, resulting in increased demand for bandwidth and storage capacity. The focus has shifted from large mainframe computers occupying more real estate to complex DCs with energy efficiency, cooling technology and facilities management.

Launch of 5G & electricity generation: The country is Africa's largest ICT market, accounting for nearly ~30% of internet usage. Commercial 5G was rolled out in the country by MTN Nigeria in September 2022, further contributing to internet penetration in the country. Currently, 80% of the electricity generated in Nigeria is generated by natural gas, while much of the rest is generated by coal. Nigeria is currently the largest user of oil-fueled backup gensets in Africa.

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Technological Advancements: The country's technological prowess was abysmally low few year back. However, new tech innovations have been happening in Nigeria which thereby accelerate demand for data center companies in Nigeria. The Information, Communication and Technology Sector has been currently one of the fastest growing sectors in Nigeria. Despite the COVID-19 pandemic, the sector contributed nearly ~15% of his country's gross domestic product (GDP).

Covid-19 Impact: Covid-19 had positive influence in Nigeria data center market. It acted as a catalyst for growth of data related /digital fields like remote working, remote learning, e- commerce, digital payments, healthcare etc. There was a major increase in data traffic thus leading to a consequent increase in demand for racks and data centers.

Analysts at Ken Research in their latest publication “Nigeria Data Center Market Outlook to 2027 - Driven by launch of 5G, internet penetration, increase in investment and government initiatives.” observed that the Nigeria data center market is expected to showcase considerable growth in the coming five years. In the upcoming years, it is predicted to expand more rapidly due to increased internet penetration and the launch of 5G. The Nigeria Data Center Market is expected to grow at robust CAGR over the forecasted period 2022-2027.

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Key Segments Covered in the report

Nigeria Data Center Market

By Vertical

• Hyper Scale DC
• Co-location DC
• Managed DC

By Type of Co-location

• Wholesale Co-location
• Retail Co-location

By End User

• Telecom and IT
• BFSI
• Government
• E-Commerce
• Others

Key Target Audience

• Data Center companies
• Cloud providers (Domestic and Global)
• Managed data center companies
• Co-location data center companies
• Private Equity and Venture Capitalist
• Industry Associations
• Data Center Constructors
• Technology providers

Time Period Captured in the Report:

• Historical Period: 2017-2022
• Base Year: 2022
• Forecast Period: 2022-2027

For More Insights On Market Intelligence, Refer To The Link Below: –

Nigeria Data Centre Market Outlook to 2027

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Increasing internet penetration along with launch of 5G and electricity generation will Nigeria data center market: Ken Research

 1. Data center industry in Nigeria is dominated by Africa Data Centers and Open Access Data Centre, and is expected to grow with a robust CAGR from 2022 to 2027F.

Nigeria Private Equity and Venture Capitalist

The growing demand for smart devices, the increasing demand for analytics, cloud adoption, and wireless networking technologies will increase the investment in big data and IoT technology. Solar Naija project, National Broadband Plan and national Digital Economy Policy and strategy (2020-2030) will significantly boost data centre market in Nigeria.

2. Co-Location captures nearly more than half of the market share in 2022 as it provides redundant power supply, better security and scalability at lower price to host businesses.

 

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The co-location accounted for the highest market share of over ~70%. Colocation services are a major revenue contributor in the data centre market in Nigeria. More and more businesses are opting for colocation because of the convenience, security of their IT infrastructure and less power cuts. They provide redundant power supply, better security, and scalability at a lower price.

3. Retail co-location service has more preference in Nigeria data center market as there aren’t many big players who are willing to buy more than 10-15 racks.

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Retail by type of co-location accounted for the highest market share. This is due to dominance of small and medium businesses in Nigeria looking forth to retail colocation spaces. Big players either go for hyperscale or decide to have their captive data centre spaces. There is a limited presence of wholesale colocation because only few big players are willing to buy more than 10-15 racks.

For More Information on the research report, refer to below link: –

Nigeria Data Centre Market Outlook to 2027

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