1. Data center industry in Nigeria is dominated by Africa Data Centers and Open Access Data Centre, and is expected to grow with a robust CAGR from 2022 to 2027F.
The growing demand for smart devices, the increasing demand for analytics, cloud adoption, and wireless networking technologies will increase the investment in big data and IoT technology. Solar Naija project, National Broadband Plan and national Digital Economy Policy and strategy (2020-2030) will significantly boost data centre market in Nigeria.
2. Co-Location captures nearly more than half of the market share in 2022 as it provides redundant power supply, better security and scalability at lower price to host businesses.
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The co-location accounted for the highest market share of over ~70%. Colocation services are a major revenue contributor in the data centre market in Nigeria. More and more businesses are opting for colocation because of the convenience, security of their IT infrastructure and less power cuts. They provide redundant power supply, better security, and scalability at a lower price.
3. Retail co-location service has more preference in Nigeria data center market as there aren’t many big players who are willing to buy more than 10-15 racks.
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Retail by type of co-location accounted for the highest market share. This is due to dominance of small and medium businesses in Nigeria looking forth to retail colocation spaces. Big players either go for hyperscale or decide to have their captive data centre spaces. There is a limited presence of wholesale colocation because only few big players are willing to buy more than 10-15 racks.
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