US agency backs Nigeria data centre plan with $1.87m study grant
- AFRIDATA and the US Trade and Development Agency signed a $1.87 million grant for a feasibility study.
- The proposed data centres in Lagos and Delta State could cost between $650 million and $1 billion.
- The company says the project will create jobs and keep more African data on the continent.
A pan-African digital infrastructure firm, AFRIDATA, has secured a $1.87 million grant from the United States Trade and Development Agency (USTDA) to study the feasibility of building data centres in Nigeria.
The agreement was announced at a ceremony and stakeholders' meeting in Abuja, marking the formal launch of AFRIDATA's Nigerian project. The full build is estimated to cost between $650 million and $1 billion.
For ordinary Nigerians, the plan could mean faster, cheaper cloud and artificial intelligence (AI) services, and thousands of jobs in construction, engineering, cybersecurity and data centre operations, according to the company.
What is being planned
The study will look at two facilities: a flagship centre in Lagos and a backup site in Delta State that would keep services running if the main one is disrupted.
The Lagos centre is being designed to Tier IV standards, a high reliability rating for data centres, and the company is considering the Lagos Free Zone as a possible location. Together the two sites are expected to provide 60 to 70 megawatts of capacity, with room to grow to 100 megawatts, and to hold more than 4,000 server racks, including equipment for AI work.
The study will also examine dedicated power from gas and renewable sources, and links to the Equiano and 2Africa undersea cables that carry internet traffic in and out of Africa.
Beyond the centres, AFRIDATA plans an ICT business park for tech companies, start-ups, small businesses and government digital programmes, and an academy to train young people, especially women, in AI, data management and cybersecurity.
Ezekiel Odiogo, senior managing director of INFRAGORA Global Capital, which is promoting the platform, said the project would create "thousands of jobs for young people and women" and make Nigeria a regional hub for digital infrastructure.
USTDA deputy director Thomas R. Hardy said African countries should build AI on "a foundation of trusted, secure technology", adding that the support would open opportunities for American companies in Nigeria's growing tech market.
Why it matters
Africa has nearly one-fifth of the world's people but less than one per cent of global data centre capacity, according to the project announcement. That forces banks, telecom operators, manufacturers, start-ups and government agencies to rely on servers abroad, which can slow connections and raise data security concerns.
Nigeria is the first of eight planned markets in AFRIDATA's continental rollout, valued at $2 billion to $3 billion. Others include South Africa, where a 200-megawatt green-powered campus is planned, Angola, Cameroon, Côte d'Ivoire, Egypt, Ghana and Kenya. KPMG is the transaction adviser.
What happens next: The feasibility study will assess the technical and financial requirements of both sites, including power, connectivity and capacity. Construction timelines and final costs will depend on its findings.
