With its $235 million Dabengwa Sifiso Data Centre, MTN is betting on cloud infrastructure to keep Nigerian startups competitive and local.
In Nigeria’s booming tech landscape, it’s easy to forget that data—the silent backbone of digital services—still largely sits offshore. MTN Nigeria wants to change that narrative.
Last week, the telecom giant switched on Phase 1 of its Dabengwa Sifiso Data Centre in Lagos, a move that could redefine how startups build, store, and scale their businesses.
MTN’s new facility, a Tier III data centre, currently offers a 4.5MW IT load across three floors and houses 780 server racks. When complete, the project will double to 9MW, with aspirations to achieve Tier IV certification—the highest global standard for uptime and reliability.
The company says the centre is carrier-neutral, allowing clients to connect through any fibre provider—a critical advantage in avoiding vendor lock-in, a common fear among enterprises.
WHAT’S IN IT FOR STARTUPS?
For startups, the opportunity is significant. MTN’s Cloud platform promises self-orchestration—meaning developers can spin up resources, deploy applications, and scale without external intervention. It’s the type of flexibility typically found in global giants like AWS or Google Cloud but priced in naira, making it potentially more affordable for local startups.
According to Linda Saint-Okafor, MTN Nigeria’s Chief Enterprise Business Officer, the network provider “is the first to offer a self-orchestration data platform in Nigeria.”
Karl Toriola, CEO of MTN Nigeria, says the facility is part of a broader strategy to transform MTN from a telecoms giant into a tech powerhouse. “Part of that is the readiness for artificial intelligence and the processing power that AI needs and uses,” Toriola noted during a briefing on June 30.
Founded in 1994, MTN Group has grown into Africa’s largest telecom operator, with operations in 19 countries and over 290 million subscribers as of 2023. The Nigerian arm alone serves over 77 million mobile subscribers, cementing its role as a critical player in the nation’s digital economy.
TIMELINES AND NEXT MOVES
- Phase 2 construction begins soon, adding another 4.5MW and aiming for Tier IV certification.
- MTN is eyeing partnerships with industries requiring high security and compliance, including finance and health.
- The full facility could eventually scale beyond 14MW, prepared for AI-heavy workloads.
Nigeria’s tech ecosystem relies heavily on foreign cloud providers, causing over $350 million in capital flight each year. MTN’s local alternative could keep critical infrastructure—and money—within the country, empowering startups to build faster, cheaper, and more securely.
For founders, this could be the start of a new era—one where Nigeria doesn’t just consume tech but owns the infrastructure powering its future.
TALKING POINTS
This could be the moment Nigerian tech stops being Lagos-only. MTN’s pan-African infrastructure could democratize cloud services beyond Lagos. But will founders outside the commercial capital see real benefits—or will this just be another Lagos-centric tech play?
If MTN succeeds, foreign hyperscalers should be worried. Africa’s cloud market has been a free-for-all for global giants. But a local challenger with deep pockets and political connections might finally give them a run for their money. The question: can MTN move fast enough to close the gap?
Data localization laws are coming—MTN’s move is pre-emptive. With privacy and security concerns rising, Nigeria could soon mandate local data residency. MTN’s data centre might end up being not just a business opportunity, but a regulatory necessity.
