Nigeria Data Centre Market Outlook Report 2023-2027: Co-Location to Offer the Most Lucrative Opportunities
DUBLIN, Sept. 25, 2023 /PRNewswire/ -- The "Nigeria Data Centre Market Outlook to 2027" report has been added to ResearchAndMarkets.com's offering.
In 2022, the Nigeria data center market reached an estimated value of approximately $131.6 million, but it's on the path to significant expansion. By 2027, it is forecasted to soar to an impressive $288.8 million. This substantial growth can be attributed to various factors, including the launch of 5G technology and the increasing penetration of the internet in Nigeria.
Nigeria has set ambitious goals for its digital future with the National Digital Economy Policy and Strategy (NDEPS 2020-2030). The country aims to transform into a fully digital economy by 2030, driving the need for robust data center infrastructure.
The thriving fintech and startup ecosystem in Nigeria is also contributing to the demand for dynamic data centers. Previously, many companies hosted their data offshore due to concerns about reliability and scalability. However, as international data center operators turn their attention to Nigeria, the sector has become more resilient and reliant on local hosting.
Colocation services are a significant revenue driver in Nigeria's data center market, accounting for more than half of the market share. The convenience, security, and reduced power interruptions make colocation an attractive choice for businesses.
Among colocation types, retail holds the largest market share. This is primarily due to the dominance of small and medium-sized businesses in Nigeria, seeking retail colocation spaces for their data center needs.
The Nigeria Data Center Industry is characterized by consolidation, with top players holding over 70% of the market share. Competition among these players is based on various factors, including the number of data centers, IT load, gross floor area, total white space, number of racks, and geographical presence.
As Nigeria continues to experience increased internet penetration, higher investments, and government initiatives, the data cente market is poised for substantial expansion in the coming years. This growth reflects the country's commitment to embracing digital transformation and the critical role data centers play in achieving that vision.
A selection of companies mentioned in this report includes
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SOURCE Research and Markets