Citidata expands Nigeria’s data centre market with six new data centres

Currently operating 14 data centers nationwide, Citidata Centre is responding to the increasing demand for storage by planning to construct six Tier III edge data centers in Ogun and Lagos states within the next two years.

Edge data centers, which are smaller facilities located close to users and their devices, offer low capacity and easy management, providing affordability in a price-sensitive market.

Prior to forming Citidata in partnership with TopTech Engineering Limited, Petrodata Management Services oversaw edge data centers in Lagos and Abuja for oil and gas clients. TopTech Engineering collaborated with Huawei to equip the Chinese company’s data centers with final fittings.

Although most data centers are concentrated in Lagos, the demand for colocation and data center services is on the rise due to a federal government mandate for ministries and departments to store data locally. This push for colocation by state governments is further fueling the demand.

Establishing a flagship Tier III data center in Ogun state offers Citidata a strategic advantage from a disaster recovery and business continuity standpoint. This setup allows for data backup outside of Lagos, reducing continuity risks in case of events like cyberattacks, natural disasters, or power outages affecting data centers in Lagos.

One data center expert highlighted the benefits of having a data center in Ogun State for disaster recovery, especially for government entities based in Lagos. This diversified approach ensures continuity in case of disruptions.

Citidata Centre’s flagship data center, operational since July 15, 2024, currently has a 30-rack capacity with plans to expand to 80 racks. Five additional facilities in Ajao Estate, Surulere, Lagos Island, Victoria Island, and Lekki are scheduled to go live by 2027. These locations are chosen for their commercial significance, aiming to reduce data transfer times for businesses.

Andie Moyan, CEO of CitiData Centre, emphasized that the focus is on providing processing power closer to end-users rather than large-scale capacity. The Magboro facility commenced operations with a 100KW capacity, in contrast to the megawatts required by standard and large-scale data centers.

The global surge in data center capacity over the past decade, driven by the increasing demand for internet connectivity, has intensified competition in the data storage sector. The United States leads with 5,388 data centers and over 1,000 MW of capacity, followed by Germany, the UK, China, and Canada.

However, Africa lags behind with 119 data centers, with South Africa having 39 centers and Nigeria with 14. South Africa also leads in capacity, contributing 400 MW out of Africa’s total 480 MW, while Nigeria contributes only 64 MW. The industry recognizes the challenge of construction costs and affordability for consumers.

Edge data centers present an accessible opportunity for operators and companies. Citidata Centre’s plans to build these facilities locally aim to reduce costs further and cater to clients seeking cost-effective solutions. TopTech Engineering will handle the construction, while Petrodata will manage the facilities.

“We believe that promoting local partnerships and assembly is crucial for fostering a sustainable ecosystem to support Nigeria’s digital transformation,” the company stated.

Moonshot by TechCabal is hosting a gathering of Africa’s innovative builders and thinkers in Lagos, Nigeria. Tickets can be obtained on the event’s website.