Equinix to Pump $140 Million into the Digital Infrastructure of Southern Nigeria
Equinix Expands Digital Infrastructure in West Africa with $140 Million Investment
American data center company, Equinix, has made a significant move into West Africa by acquiring MainOne, a leading data center and connectivity provider in the region, for $320 million. This marks Equinix's official entry into Africa [1].
As part of the long-term plan to establish itself as a leading digital infrastructure company in the region, Equinix has earmarked $140 million for investments in southern Nigeria, including the cities of Port Harcourt and Lagos. While the current status and progress of these projects are not explicitly detailed, the acquisition of MainOne includes its existing data centers, including those in Lagos, suggesting plans for expansion [1].
The impact of this investment is expected to be significant for southern Nigeria's digital infrastructure, particularly given Nigeria's status as Africa's largest economy with over 143 million active internet subscribers. Equinix's presence will enhance connectivity, promote fintech, digital media, and other innovative digital services, and provide organizations local and regional access to global markets [1].
This investment aligns with broader trends where global investors are significantly ramping up investments in data centers due to soaring demand driven by AI and digital transformation [4].
In Port Harcourt, Equinix will serve as the initial landing station for Meta's 2Africa submarine cable in Nigeria, significantly increasing the region's bandwidth. The company also plans to launch PR1, its first data center in Port Harcourt, and expand Equinix LG3 in Lagos [1].
Equinix's vendor-neutral platform and robust interconnection capabilities can help industry ecosystems form in West Africa and collaborate to grow the region's digital economy. The Federal Ministry of Communications, Innovation and Digital Economy in Nigeria has established a Broadband Alliance aimed at building a national fiber backbone to tackle the issue of inadequate middle-mile infrastructure [1].
Nigeria currently hosts eight submarine cable landings, including Google's Equiano and Meta's 2Africa, each capable of delivering over 100 Tbps. Equinix plans to expand LG3, its third Lagos-based data center, to meet the rising demand for enterprise and cloud services [1].
The investment will fund the construction of a new data center in Port Harcourt and the expansion of Equinix's third data center in Lagos. Equinix has committed to improving the resilience of the region's digital infrastructure by routing traffic over multiple cables in West Africa on an active/active basis [1].
Equinix and other private sector players are expected to play a central role in realizing the goal of achieving full national coverage of fiber infrastructure in Nigeria. The launch of Equinix PR1 in Port Harcourt will significantly expand internet capacity in Southern Nigeria and support the geographical diversification of digital infrastructure development [1].
Nigeria's digital transformation began with the GSM license auction in 2001, leading to a mobile subscriber base of over 140 million. Equinix's entry into the West African market was marked by its $320 million acquisition of MainOne in 2022 [1].
References:
- Equinix to Expand Digital Infrastructure in West Africa with $140 Million Investment
- Equinix to Launch First Data Centre in Port Harcourt, Nigeria
- Equinix to Expand LG3 Data Center in Lagos, Nigeria
- Global Data Center Investments Soar as Demand for AI and Digital Transformation Grows
During the expansion of its digital infrastructure in West Africa, Equinix has designated $140 million for investments in cities like Port Harcourt and Lagos in southern Nigeria, aiming to boost the region's connectivity and foster digital services. On a sunny afternoon in Port Harcourt, Equinix will serve as the initial landing station for Meta's 2Africa submarine cable, enriching the region's weather of bandwidth.
