…as Nigeria mobilises $1.15bn in local data centres, cloud infrastructure
The global cloud infrastructure market is on an unprecedented growth trajectory, surging to nearly $100 billion in enterprise spending in the second quarter (Q2) of 2025, according to new data from Synergy Research Group.
The $98.8 billion quarterly spend marks a year-on-year growth of 25%, driven largely by the explosive demand for Generative AI (GenAI) services and infrastructure.
While the United States continues to dominate the global cloud landscape with 25% growth and unmatched scale, emerging markets like Nigeria are making bold strides in localising cloud infrastructure, asserting digital sovereignty and capturing a share of the global digital economy.
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Nigeria has attracted over $1.15 billion in cumulative cloud and data centre investments from major players such as MTN Nigeria, Kasi Cloud Limited, Open Access Data Centres (OADC), and others. This marks a historic pivot for Africa’s largest economy, signaling its ambition to become a regional digital powerhouse.
“This is a good time to be a cloud provider. We can thank GenAI for supersising what was already a big and high-growth market,” said John Dinsdale, chief analyst at Synergy Research Group.
GenAI-specific cloud services grew by as much as 180% in Q2, with broader AI use also enhancing general cloud consumption.
In this climate of accelerated digital transformation, Nigeria is carving its own path with large-scale infrastructure projects designed to keep data, talent, and capital within its borders.
Leading the charge is MTN Nigeria, which has invested over $285 million in its Tier III Dabengwa Data Centre in Lagos. The first phase, worth $150 million, is already complete, with an additional $135 million projected for phase two.
The telco has also launched its MTN Cloud platform, a sovereign, naira-based cloud service designed to give startups and enterprises a local, secure, and scalable alternative to foreign platforms.
“Our peer-free cloud platform removes barriers to entry and allows businesses to scale faster and more securely. Cloud computing is no longer optional. This facility enables innovation to thrive from Nigeria to the world,” said Ayham Moussa, MTN Nigeria’s chief operating officer.
Kasi Cloud Limited is contributing $250 million toward building a hyperscale data centre in Lekki, while OADC, a subsidiary of WIOCC, is investing $240 million in a 24-megawatt, AI-ready data campus in Lagos.
According to Ayotunde Coker, CEO of OADC, the facility will be among the first in Africa to benefit from a sustainability-linked loan and will provide open-access cloud on-ramp integration for platforms like Microsoft Azure and Oracle. “These are not just data centres; they are the digital factories of the future,” Coker added.
An additional $230 million in investment has been recorded across 11 existing data centres in Nigeria, primarily in Lagos, bringing the national total to $1.155 billion.
Nigeria’s investment surge is as much about strategic autonomy as it is about economic growth. The Federal Government, under the guidance of the Ministry of Communications, Innovation and Digital Economy, has framed the move as a digital sovereignty mission.
“With infrastructure like this, we are keeping our data and capital local. This is how we build national trust and ensure digital sovereignty,” said Dr. Bosun Tijani, the minister of communications, innovation and digital economy.
Globally, cloud infrastructure providers have seen revenues jump by $36 billion since early 2023. Amazon retains the largest market share at 30%, followed by Microsoft at 20% and Google at 13%. CoreWeave, an AI-focused infrastructure provider, has rocketed from obscurity to over $1 billion in quarterly revenue, challenging tier-one players.
Public IaaS and PaaS services, including platforms like AWS, Azure, and Google Cloud, remain the dominant segments, accounting for over two-thirds of the market and growing at 27% year-on-year.
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Geographically, cloud growth is booming across all major regions, with standout performances in Brazil, India, Indonesia, Ireland, and Nigeria, each outpacing the global average when measured in local currencies.
As global players compete for AI-enabled dominance, Nigeria’s investment in hyperscale capacity and cloud-native platforms is setting a new benchmark for Africa. With over 70 megawatts of new capacity underway across Victoria Island, Lekki, and Eko Atlantic, Lagos is emerging as a continental digital hub, second only to Johannesburg and fast closing in on Cape Town.
As global cloud revenues race toward the $100 billion milestone per quarter, Nigeria’s bet on local infrastructure is more than just timely, it is transformative.
“If the world won’t bring cloud to Africa, Africa will build it for itself. This is how we protect our data, empower our youth, and compete globally,” Kashifu Inuwa Abdullahi, director general of the National Information Technology Development Agency (NITDA), said.
