Lagos, Nigeria, is rapidly emerging as Africa's second-largest data centre hub, with global investors flocking to Victoria Island and the Lekki Peninsula to capitalize on the city's strategic location and improving infrastructure. The city's data centre market is projected to reach 70 megawatts (MW) by 2027, trailing only Johannesburg's 200MW capacity.

The proximity of Lagos Island to eight submarine internet cables is a significant draw for investors. These cables, including Google's Equiano submarine cable and the MainOne submarine cable, enable faster data transfer and reduce delays. Coastal data centres built near these landing stations can improve speed and efficiency, serving as backup hubs to keep networks running even if inland connections fail.

According to Ayotunde Coker, CEO of Open Access Data Centre (OADC), the availability of infrastructure and proximity to landing stations are key factors driving investment in Victoria Island. OADC's Tier III-certified, carrier-neutral facility in Lekki is directly connected to Google's Equiano submarine cable, which has a massive capacity of up to 144 terabits per second (Tbps).

MainOne's Tier III-certified facility in Lekki, MDXi, is also directly connected to the MainOne submarine cable, which has a capacity of 10 Tbps. The concentration of data centres in Victoria Island, Lekki, and Eko Atlantic City is expected to continue, with projects under construction including Equinix's 5MW facility, Kasi's 5MW centre, Nxtra by Airtel's 38MW data centre, and Open Access Data Centre's 24MW facility, all slated for completion by 2027.

These new data centres will expand Nigeria's total capacity from 64MW to approximately 200MW, bringing data processing closer to users and reducing delays. The increased capacity will also improve network reliability, minimizing downtime and ensuring more stable connectivity. The growth of Lagos' data centre market is driven not only by connectivity but also by the city's improving power infrastructure.

Victoria Island and Lekki are designated "Band A" service areas, ensuring 20 to 24 hours of electricity daily, which is critical for data centre operations. Wole Abu of Equinix West Africa notes that the power infrastructure in the Lekki Corridor is more robust than other parts of Lagos. Access to water for cooling systems is another factor, as data centres globally consume a significant amount of water daily.

The increasing investment in Lagos' data centres reflects a global urbanization wave, driven by factors such as aging populations and evolving consumer behavior. The United Nations projects that by 2050, about 66% of the global population will live in cities, with Asia and Africa contributing 90% of this urban growth. Eko Atlantic, a cutting-edge smart city with world-class infrastructure, has attracted major data centre investments, hosting two hyperscale facilities.

As Lagos' coastline becomes a hotspot for data centre investment, the city's infrastructure and connectivity are poised to play a critical role in shaping Africa's digital landscape. With the promise of faster data transfer, improved network reliability, and increased capacity, Lagos is set to emerge as a key player in the global data centre market.