AFRIDATA, a pan-African digital infrastructure company, has signed a $1.87 million grant agreement with the United States Trade and Development Agency (USTDA) to conduct a feasibility study for a proposed data centre project in Nigeria estimated to cost between $650 million and $1 billion.
The agreement was announced at a ceremony and stakeholder meeting at the Transcorp Hilton in Abuja, marking the formal launch of the AFRIDATA Nigeria project.
The project is the first phase of a planned $2 billion to $3 billion digital infrastructure investment across eight African countries, with Nigeria expected to serve as a regional hub for data storage, cloud computing and artificial intelligence (AI) services.
Ezekiel Odiogo, senior managing director of INFRAGORA Global Capital, which is championing the AFRIDATA platform, said the project would create jobs and strengthen Nigeria’s position in Africa’s digital economy.
‘AFRIDATA Nigeria will make Nigeria the regional center of Africa’s digital infrastructure, creating thousands of jobs for young people and women and boosting productivity and growth across West Africa. USTDA’s early support has been catalytic. We look forward to working in partnership with all key stakeholders to make this project a success,’ Odiogo said.
Thomas R. Hardy, USTDA’s deputy director, said the project would support Nigeria’s digital economy and create opportunities for American businesses.
‘As nations across Africa lay the groundwork for deploying artificial intelligence solutions, it’s critical that they do so on a foundation of trusted, secure technology.
‘This support will grow Nigeria’s digital economy while creating new opportunities for American companies to compete and win in one of the world’s fastest-growing markets,’ Hardy said.
The feasibility study will assess the technical and financial requirements for two proposed data centres: a major facility in Lagos and a second facility in Delta State to provide backup services and support recovery in the event of disruptions.
The Lagos facility is being designed to meet Tier IV reliability standards, a classification associated with highly resilient data centre infrastructure. INFRAGORA is considering locating the facility within the Lagos Free Zone.
The two facilities are expected to provide between 60 and 70 megawatts of capacity, with the potential to expand to 100 megawatts. They would accommodate more than 4,000 server racks, including equipment designed to support AI applications.
The study will also examine plans for dedicated electricity supply using gas and renewable energy, as well as connections to the Equiano and 2Africa submarine cable systems, which carry international internet traffic.
Beyond the data centres, AFRIDATA plans to establish an information and communications technology (ICT) business park for technology companies, start-ups, small businesses and government digital programmes.
KPMG, the project’s transaction adviser, presented the implementation roadmap at the event. Participants also received a preview of Oria, AFRIDATA’s proposed artificial intelligence assistant.
The investment is expected to generate thousands of direct and indirect jobs in construction, engineering, cybersecurity, data centre operations and other digital services.
AFRIDATA also plans to establish the AFRIDATA Academy as a regional training centre for artificial intelligence, data management and cybersecurity, with a focus on preparing young people, particularly women, for employment in the digital economy.
The company said improved local data infrastructure would help banks, telecommunications operators, manufacturers, start-ups, small businesses and government agencies access cloud computing and AI services more quickly, securely and affordably.
Africa has nearly one-fifth of the world’s population but accounts for less than one per cent of global data centre capacity, according to the project announcement. This shortage has increased reliance on servers located outside the continent, potentially affecting connection speeds and raising concerns about data security.
AFRIDATA said its Nigerian facilities would help address the gap by keeping more data and digital services within the continent while supporting the development of local technology businesses.
The company also plans to connect Nigeria’s digital infrastructure with neighbouring West African markets, with the aim of attracting international investment, strengthening regional cooperation and expanding access to AI services.
Nigeria is the first of eight planned markets in AFRIDATA’s continental expansion programme, which will cover all five regions of Africa.
Other proposed projects include a 200-megawatt, green-powered data centre campus in South Africa and a 50-60-megawatt facility in Angola along the Lobito Corridor.
The expansion plan also includes Cameroon, Côte d’Ivoire, Egypt, Ghana and Kenya.