As Africa’s digital economy accelerates, modern data centres are emerging as the critical infrastructure shaping everything from fintech to streaming—and determining who controls the continent’s digital future.
Every time a Nigerian fintech startup processes a transaction or a Kenyan healthtech platform delivers telemedicine services, a data centre somewhere is humming quietly in the background.
These vast facilities, often hidden behind high walls and layers of security, are the true engines of the modern digital economy.
At their core, data centres are secure buildings packed with rows of servers, networking equipment, storage systems, backup power supplies, and advanced cooling technology.
They ensure that apps, websites, and cloud services remain available 24/7, regardless of power cuts, cyberattacks, or hardware failures.
Data centres come in various forms: hyperscale facilities supporting giants like AWS and Microsoft Azure; enterprise centres run by banks or telcos; and the emerging “edge” facilities that bring processing closer to users, reducing latency—a critical factor for services like AI, gaming, and video streaming.
Why Startups Should Care
For African startups, where to host their applications isn’t a minor detail—it can mean the difference between a fast, reliable user experience and frustrated customers abandoning their apps.
Local hosting offers clear advantages. Latency is dramatically reduced when servers are in Lagos or Nairobi rather than in Europe or the US. Data residency laws like Nigeria’s Data Protection Act (NDPA) increasingly require sensitive data to stay within national borders. Cost is another factor: hosting locally often means paying in naira rather than dollars, shielding businesses from currency volatility.
MTN’s new Dabengwa Sifiso Data Centre in Nigeria, for example, is betting big on these benefits. Linda Saint-Okafor, MTN Nigeria’s Chief Enterprise Business Officer, says the company’s cloud platform is designed for startups who want the flexibility of global cloud services like AWS but with local compliance and cost benefits. “We believe we are the first to offer a self-orchestration data platform in Nigeria,” she said during a recent briefing.
Africa’s data centre landscape is heating up. Players like MainOne (now owned by Equinix), Rack Centre, Open Access Data Centres (OADC), and Digital Realty (through Medallion) have laid significant groundwork.
MTN, known for its telecom dominance, is betting that its pan-African footprint will give it an edge as demand for cloud, AI, and enterprise services explodes. Its Dabengwa Sifiso facility—planned for 9MW capacity at full build—aims to attract fintech, healthcare, and government customers with strict security and regulatory needs.
Carrier-neutrality has become a selling point. Facilities like MTN’s allow clients to connect through any fibre provider, not just the owner’s network. This is crucial for enterprise customers wary of vendor lock-in.
Scaling Up for Africa’s Digital Future
Africa’s data centre market is rapidly growing. The continent’s annual offshore data hosting bill is estimated at over $350 million, driven by companies relying on foreign hyperscalers. Local facilities aim to repatriate some of this spending.
Facilities like MTN’s are designed for rapid scale, using prefabricated container modules to expand capacity. The Dabengwa Sifiso Data Centre plans to support AI workloads, 3D monitoring, and high-compliance operations such as financial transactions and national security services.
Upcoming milestones to watch include Phase 2 of MTN’s buildout, expected to bring the site to Tier IV certification, the highest global standard for uptime and redundancy. Industry observers are also tracking how Nigerian regulators will support local data centre growth as a means to boost the economy and reduce dependency on foreign infrastructure.
Why This Matters for Nigeria and Beyond
Nigeria is Africa’s biggest digital market, but it’s also the continent’s largest exporter of data traffic. Relying on servers abroad makes local apps slower and raises concerns over privacy, national security, and foreign exchange drain.
Data centres like MTN’s could be a game-changer. They promise to keep sensitive information local, improve digital experiences for end users, and lower costs for businesses. However, success will hinge on reliable power, skilled workforce availability, and maintaining trust among enterprise clients.
With the country’s digital ambitions climbing—from fintech dominance to AI aspirations—the question now is whether local data centres can truly keep pace with the demands of a booming digital economy.
Talking Points
Regulators: Sleeping Watchdogs or Digital Champions? Nigerian regulators want local hosting—but how fast and fair will they act?
Data protection laws sound good on paper, but enforcement is patchy. And will regulators protect open access to infrastructure, or favour big incumbents?
Building Talent for the Digital Backbone. Fancy racks and servers are useless without engineers to run them.
Is Nigeria investing enough in the human capital—data centre technicians, cloud architects, cybersecurity pros—to sustain this booming sector?
Africa Must Define Its Digital Identity. Ultimately, the question is simple: will Africa be a digital consumer or a digital creator?
Data centres are the new “ports” in a digital economy. Whoever controls them, controls the trade routes of the future. Are we ready for that responsibility—or just racing to build shiny buildings?
