Nigeria’s Data Centre Market Gets Expanded by Citidata

To address Nigeria’s storage needs, Citidata Centre aims to expand its infrastructure by constructing six Tier III edge data centres in Ogun and Lagos states within the next two years. These smaller, locally-situated centres offer cost-effective solutions that are ideal for price-sensitive markets.

Building on its experience managing edge data centres for oil and gas clients in Lagos and Abuja, Petrodata Management Services has partnered with TopTech Engineering, which has previously collaborated with Huawei on data centre projects, to establish Citidata Centre.

Data centres are mainly located in Lagos, but there’s a growing demand for colocation and data centre services due to the federal government’s directive requiring all ministries and departments to store data locally. Additionally, state governments are advocating for colocation, which is further fueling the demand.

For Citidata, highlighting its flagship facility in Ogun state—the first Tier III data centre in that state—makes sense for disaster recovery or business continuity strategies. Any event disrupting normal data centre operations, such as natural disasters, cyberattacks, or power outages, constitutes a disaster. If a cyber attack or earthquake, for example, impacted Lagos data centres, an organization or government entity with backups in a non-Lagos data centre would face fewer continuity challenges.

The Significance of Data Centres in Ogun
According to a data centre expert, establishing a data centre in Ogun State is a savvy business move for disaster recovery, particularly for Lagos-based companies owned by government personnel. This strategy allows them to diversify their data storage across different states, mitigating risks and ensuring continuity in case of disruptions. Government agencies, in particular, tend to favour this approach than private companies’ practices of spreading data centres across the same region.

Citidata Centre’s flagship data centre launched on July 15, 2024, with a 30-rack capacity and plans to expand to 80 racks. Five further facilities will open at Ajao Estate, Surulere, Lagos Island, Victoria Island, and Lekki by 2027. The corporation views these areas as commercial sectors where lowering data transfer time is crucial for enterprises.

Andie Moyan, CEO of CitiData Centre, stated that each of the Lagos data centres will initially have a capacity of less than 100 racks. This is meant to maintain facilities that are flexible and cost-effective.

Moyan explained that the current demand is not only for large-scale capacity but also for processing power closer to end customers. Unlike standard-sized and large-scale data centres, which require megawatts of electricity, the Magboro facility began with 100KW of capacity.

The Rise in Data Centres
Over the previous decade, data centre capacity has increased globally due to rising demand for internet access, which is driven by more than 5.45 billion internet users. This demand has resulted in competitive competition for data storage facilities, notably data centres. The United States leads the pack, with 5,388 data centres and over 1,000 MW of capacity, followed by Germany (522), the United Kingdom (517), China (449), and Canada (336).

Africa has 119 data centres, which is behind. There is a glaring difference between the top two nations: Nigeria has only 14 data centres, compared to 39 in South Africa. With 400 MW of Africa’s 480 MW total capacity, South Africa leads the continent in capacity, with Nigeria contributing only 64 MW. The industry has cited the expense of building the facilities and their affordability for customers as one of the problems.

For many operators and businesses, edge data centres are easy targets. In order to further cut expenses and assist customers looking for more economical options, Citidata Centre intends to construct the facilities locally. Petrodata will oversee the facilities, and TopTech Engineering will construct the data centres in any site selected.

The corporation recognises that strengthening local assemblies and partnerships is critical for developing a sustainable ecosystem capable of supporting Nigeria’s digital revolution.

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