Every WhatsApp message you send, every bank transfer you make, every video you stream, all of it runs through invisible infrastructure most Nigerians never see. These facilities are called data centres, and they're quietly becoming the backbone of Nigeria's digital economy.

As Africa's most populous nation races to digitize everything from banking to healthcare to government services, one question looms large: Can Nigeria build the infrastructure to support this transformation?

According to a new report by Verraki, a member of Andersen Consulting, the answer could reshape Nigeria's economic future.

The Invisible Factories of the Digital Age

Data centres aren't just warehouses for servers. They're critical national infrastructure that every sector depends on, from fintech platforms processing millions of transactions to hospitals storing patient records and government databases serving over 200 million citizens.

"As the global economy becomes increasingly digital, Nigeria stands on the brink of a transformation. Data centres are not just warehouses of servers; they are the factories of the 21st century, powering commerce, governance, and innovation.", says Kayode Gegele, Manager of Technology Advisory at Verraki (A member of Andersen Consulting).

The numbers tell a compelling story. Nigeria's data centre market is expanding rapidly, with Lagos emerging as the dominant hub, hosting around 77% of all facilities. Major players like MainOne's MDXi, Rack Centre, and Open Access Data Centres have established operations, while new entrants continue to emerge.

A Multi-Billion Naira Economic Engine

The economic impact is staggering. Data centres create direct jobs for engineers, IT specialists, technicians, and security services. They also generate demand for construction contractors and energy providers.

Take Loudoun County, Virginia, the world's data centre capital. It generated $330 million in tax revenue in 2020 and is projected to surpass $1.3 billion by 2028. Nigeria has similar potential.

But the indirect impact may be even more significant. By powering fintech, e-commerce, healthcare, and digital government platforms, data centres improve internet speeds, enable digital innovation, and create countless downstream opportunities.

In 2023 alone, African startups raised $2.7 billion. Nigerian founders need reliable, scalable data centre services to host applications, manage customer data, and ensure business continuity as they scale.

Several forces are converging to drive explosive demand for data centre capacity in Nigeria, they include:

• AI adoption across industries is fueling massive demand for computing power and local data storage. From predictive analytics to customer engagement tools, AI models require the kind of scalable, secure infrastructure that only properly designed data centres can provide.

• Banks, fintechs, and public agencies are shifting to digital platforms that require secure, reliable hosting. Mobile banking, digital payments, and electronic identities are producing unprecedented volumes of data that must be processed locally.

• NITDA's frameworks and the Nigeria Data Protection Act (2022) encourage data localisation and compliance with global standards. The National Digital Economy Policy positions data infrastructure as a strategic national priority.

• With over 130 million internet users and growing, and Africa's youngest population, Nigeria's digital economy is poised for exponential growth.

The Reality Check

The opportunity is massive, but so are the challenges:

• Power Reliability Remains Critical: Data centres require uninterrupted electricity, yet Nigeria's grid remains fundamentally unstable. Operators depend on diesel generators, raising costs and emissions. Hybrid models using gas and renewables are emerging, but they need policy support to scale.

• Connectivity Gaps Persist: Fibre infrastructure outside major cities is still limited. The over-concentration in Lagos poses risks for national redundancy and disaster recovery.

• Skills Shortage Is Real Data centre operations require highly technical skills and adherence to global standards. Nigeria's tertiary institutions must infuse industry work experience, technical certification, and mentoring into curricula to produce STEM graduates ready for this emerging sector.

• Regulatory Fragmentation: Inconsistent policies across Africa make it difficult for Nigeria to serve as a regional hub. Harmonizing cross-border data standards is essential for attracting multinational investment.

The Government's Ambitious Plan

The federal government has announced plans to deploy 90,000 kilometres of fibre broadband across Nigeria. If executed well, this high-speed connectivity will unlock cloud adoption for businesses and individuals nationwide, attracting hyperscalers like Amazon Web Services, Google Cloud, Alibaba, and Microsoft Azure.

With the right policy incentives, renewable energy integration, and regional collaboration, Nigeria could establish itself as the Data Capital of West Africa.

What This Means for Business Leaders

For Nigerian organisations, the implications are profound:

• CIOs should view local data centres as strategic enablers of compliance, resilience, and scalability
• CISOs should leverage world-class infrastructure for data protection, cybersecurity, and business continuity
• Startups can access enterprise-grade hosting environments that lower entry barriers
• Multinationals will benefit from reduced latency and improved user experience when workloads are hosted locally