Nigeria is preparing to expand its data centre capacity from about 50 megawatts of IT load to roughly 200MW within the next five years, a move expected to reshape cloud infrastructure and strengthen local control of digital services.
The target was discussed at the seventh Telecom Sector Sustainability Forum, TSSF 7.0, in Lagos, where technology and telecom industry leaders examined the infrastructure needed to support Nigeria’s digital economy. The proposed expansion would represent a fourfold increase as demand for cloud computing, artificial intelligence, financial technology and public digital services grows. That gap will matter as AI workloads and cloud adoption continue to expand nationwide.
Local cloud infrastructure becomes a national priority
According to Ike Nnamani, Chief Executive Officer of Digital Realty Nigeria and co-chair of the technical working group supporting the National Sovereign Cloud Initiative, Nigeria needs more infrastructure within the country to support its digital economy and reduce dependence on overseas facilities.
Nnamani said more than 80 per cent of Nigeria’s sovereign data is currently hosted outside the country. He described this dependence as a national risk because critical digital services can be affected by infrastructure and policy decisions beyond Nigeria’s direct control.
The proposed increase in capacity is therefore not only about adding server space. It is also connected to data sovereignty, cloud adoption and the ambition to make Nigeria a regional hosting centre for West Africa.
The Federal Government’s National Digital Cloud Policy is part of the same wider strategy. Unveiled on August 17, 2026, the policy is designed to attract investment into cloud and data infrastructure, strengthen domestic capabilities and position Nigeria as a regional digital services hub. The ministry said the framework is also expected to support jobs, digital exports and government transformation.
The government has said it will focus on creating the regulatory and investment environment, while private-sector operators will build and run the infrastructure.
Also Read: Nigeria Launches Sovereign Cloud Taskforce to Strengthen Data Security
Demand is growing, but infrastructure gaps remain
Nigeria already has a sizeable data centre ecosystem, although capacity is concentrated in a few locations. Arizton’s September 2026 Nigeria data centre portfolio identifies 21 existing facilities and 16 upcoming facilities across Abuja, Ikeja and Lagos.
Lagos remains the main centre of activity, helped by its concentration of businesses, international connectivity and submarine cable infrastructure. Major operators expanding or developing facilities include Digital Realty, Equinix, OADC, Rack Centre and Africa Data Centres.
Still, increasing capacity will require more than construction. Data centres depend heavily on electricity, cooling systems, fibre networks and capital-intensive equipment. At TSSF 7.0, industry participants also pointed to high financing costs, right-of-way problems, energy expenses and regulatory fragmentation as obstacles that could slow infrastructure deployment.
Nigeria’s broader data centre market has shown strong growth potential. An Estate Intel projection reported in 2025 estimated that installed capacity could rise from 56.1MW in 2025 to more than 218MW by 2030, representing an increase of more than 3.7 times.
Back story: Nigeria’s shift towards sovereign cloud
Nigeria’s renewed focus on local data infrastructure follows a series of policy and market developments. In July 2026, the Central Bank of Nigeria directed banks, fintech companies, mobile money operators and other payment service providers to ensure that payment transaction data generated in Nigeria is stored and managed locally, with full compliance expected from January 1, 2027. Punch’s report on the CBN data localisation directive noted that the move is expected to create additional demand for domestic data centres and cloud services.
The Federal Government’s National Digital Cloud Policy, released the following month, widened the conversation from financial data to a broader national approach to cloud infrastructure and sensitive government information.
For Nigerian businesses and technology users, the practical effect of this infrastructure push could eventually be seen in wider availability of locally hosted applications, stronger cloud services and increased demand for local technology jobs. However, the scale of the expansion will depend on investment, dependable power, fibre connectivity, regulation and the ability of operators to build facilities that can serve growing workloads sustainably.
As Nigeria targets 200MW, the key issue is not simply how many data centres can be built, but whether the surrounding digital infrastructure can grow at the same pace.
Also Read: Nigeria’s Sovereign Cloud Plan: What It Means for Data Security, AI and Digital Independence
