Notwithstanding the investments that have gone into Nigeria’s data centre sub-sector, there are concerns that capacity utilisation of these facilities remains very poor when compared to other countries within the region, including South Africa, Kenya and others.
• Local capacity CAGR of 23.24% of global projected $517b• MDAs, eCommerce, banks still host content abroad
Arguably, the little development seen in Nigeria’s data centre market is traceable to its recent focus on digitisation and the incorporation of emerging technologies like Internet of Things , big data, artificial intelligence , machine learning and advanced network connectivity services. This is said to have been driven by the availability of Nigeria having all the subsea cables landing at its shore.
The Guardian checks showed that these players boast of about 55MW computing power, over 30,000 racks capacity combined and are Tiers 3 and 4 data centres. Indeed, Teraco, founded in 2008, operates seven other facilities in South Africa across Johannesburg, Cape Town and Durban, with 75MW computing power and serves more than 600 customers.
According to him, data centre capacity is not rated only based on the numbers of data centres but more importantly the IT load in MW that is available in data centres that are operational. According to him, if these are not addressed there will be growth in the space but it will be slow and remain below the potential.
While checks have shown that telecoms operators and other ICT firms host their data locally, governments’ Ministries, Departments and Agencies that should lead in local hosting are increasing the sector’s capital flight by hosting their data abroad. Specifically, NITDA’s Guideline 9.1 requires all indigenous Original Equipment Manufacturers to assemble all hardware in Nigeria and maintain fully staffed facilities for that purpose. Guideline 11.1 requires all telecommunications companies to host all subscriber and consumer data in Nigeria. Guideline 12.1 requires all network service companies to host all subscriber and consumer data in Nigeria. Guideline 12.
Speaking on possible capacity glut, Rudman, said probably, stressing, “but most of these operators are trying to bring foreign content networks such as Amazon, Google, Microsoft, among others to host more content locally. Meanwhile, there is a possibility of local content increasing as well.” On why local hosting has not really gained traction, he said before now, the issue had to do with cost, which I think is no more an issue.
At an ICT forum in Lagos, the Chief Executive Officer, OADC, Dr. Ayotunde Coker, said that data centre operations in the country are pretty stable even in the slow economy. Speaking on ‘Maintreaming Data Centres in the Nigerian Digital Economy’ at a forum in Lagos, Dr. Chidi Ajuzie, wherever they are located, the need for data centre is going to increase in the coming years, spearheaded by the use of AI, which depends on massive amounts of data and computing power and lots of electrical energy.
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