By Gary Chomse, regional director for Consolidated, Central and Southern Africa at Vertiv.
Lagos, Nigeria – February 26, 2025 – Nigeria's information and communications technology (ICT) sector is experiencing robust expansion, fuelled by the financial services, oil and gas and fintech industries. This brings with it new investment prospects for data centres, to service advances in cloud computing infrastructure and the rollout of 5G technology[1].
According to a 2023 research report, the size of the Nigerian data centre market is projected to grow at a compound annual growth rate (CAGR) of almost 20 percent (17.9 percent) during the period 2021-2027[2]. Critical aspects of Nigeria’s data centre ecosystem include the need to deploy next-generation data infrastructure for agility and sustainability, and the ability to scale up as required.
The strategic use of prefabricated modular data centres can help to address these challenges.
Adding data centre capacity
The complexity of new technologies - including machine learning (ML) and artificial intelligence (AI) – as well as the spreading of the network edge, is driving the need for enterprise data centres to add capacity. There is a growing need to upgrade data centre facilities to support the required advanced computing and higher-density architectures, including an increased complexity in power and cooling needs.
As a result, many local organisations will need to plan to add capacity due to increasing growth and reliance on digital applications, and the realisation that in-house options aren’t sufficient. The requirement is to be able to add capacity quickly and easily, without compromising on network security or the bottom line.
Prefabricated modular data centre offerings provide sophisticated, customisable and scalable solutions to modern capacity challenges, offering factory-built reliability, rapid deployment, flexibility and efficiency.
While prefabricated modular data centres are not new, the technology has been refined since its introduction around 15 years ago, and at the same time, the building practices involved have also been improved. These sophisticated, fully integrated IT solutions can be configured to meet specific needs, as well as for quick deployment wherever computing is required.
Benefits of prefabricated modular data centres
In addition to being an easy-to-implement, affordable alternative to building traditional data centres, prefabricated modular data centres offer the following benefits:
- Factory engineered reliability: Prefabricated solutions are engineered, assembled and tested in the factory, resulting in offerings that are rugged, reliable and repeatable. This reliability can pay dividends over the system's lifespan, reducing the overall need for repairs and service calls.
- Speed of deployment: Integrated modular solutions can be built while on-site activities continue. In addition, because they are fully integrated and virtually plug-and-play, these solutions can be commissioned and operational much faster than traditional data centres - up to 30 percent more quickly, in fact.
- Customisable: Modern modules are custom-built to customer specs, then the configuration and build can be repeated quickly and efficiently as demand increases. This simplifies operation and service.
- Flexible: Integrated modular solutions can be built and configured to support various architectures, including high-density computing and liquid cooling. In addition, a modular solution is portable and can be relocated as network demands change, for example to better support a low-latency application.
- Reduced waste: Because these are integrated, closed systems, they can be engineered to eliminate waste and be more sustainable than a traditional design.
- Cost certainty and scalability: The total cost of ownership is typically lower for integrated modular solutions, which also allow an organisation to add capacity when and where it is required
Meeting market growth requirements
As outlined, the data centre industry in Nigeria is predicted to see significant growth in the next few years, being projected to reach USD 646 million by 2030, after its 2023 valuation of USD 250 million[3] - an anticipated doubling and more, in just over five years. This growth comes on the back of the increasing demand for data storage and processing through the rise of the digital economy and the growth of internet usage in Nigeria[4].
In support of this growth, enterprise data centres looking to add compute, power or cooling in smaller increments can be enabled by these aims through modular solutions from Vertiv, a global provider of critical digital infrastructure and continuity solutions.
Vertiv remains committed to addressing critical data centre challenges across the continent, supporting the advancement of ICT enablement and digitalisation throughout the Central African region. The organisation established its office in Lagos, Nigeria, in 2003, manned by highly trained local sales, service and project delivery teams. During this time, Vertiv has built a strong, loyal local customer base, gaining recognition for delivering reliable prefabricated solutions tailored to regional needs.
For more information on Vertiv’s modular solution offerings, please click here.