Microsoft rules out Nigeria data centre plans

Microsoft says it is not planning to build a data centre in Nigeria anytime soon, focusing instead on cloud connectivity and partnerships to serve businesses in Africa’s largest economy.

Nigeria’s push to deepen its digital transformation is increasing demand for reliable, local digital infrastructure, including data centres, according to industry experts. As government services move online and sectors such as fintech, e-commerce, health and artificial intelligence expand, experts say local data centres could help reduce latency, improve data sovereignty and strengthen resilience.

Responding to a question on whether hyperscalers such as Microsoft are considering local facilities, the General Manager of Microsoft Nigeria & Ghana, Abideen Yusuf, said the issue should be viewed from two angles: the country’s infrastructure needs and Microsoft’s present priorities.

“There is always an appetite for every country to want to have data centres,” Yusuf told The PUNCH in Lagos at a press conference. “There are ongoing conversations, and I know the government is trying to collaborate with different partners within the ecosystem.”

However, he said Microsoft’s attention is currently on enabling Nigerian organisations to access its global cloud services rather than hosting data locally.

“From a Microsoft standpoint, our current focus is on the infrastructure we are providing, particularly through services like ExpressRoute,” Yusuf said. “This helps organisations by providing a dedicated link from their data centres directly to Microsoft Azure, across the regions they choose to operate in. That is where our focus is today.”

When asked directly whether Microsoft was having conversations about establishing a data centre in Nigeria, Yusuf declined to confirm any such plans.

“Those are not conversations we are able to discuss,” he said. “Conversations may be ongoing, but they are not something we publicly comment on.”

Microsoft’s position comes as Nigeria’s data centre market expands rapidly. Installed capacity is projected to grow from about 56.1 megawatts in 2025 to more than 218 megawatts by 2030, driven by rising demand from cloud services, fintech and the broader digital economy. The country currently hosts around 17 active data centres, with major projects under development by operators including Equinix and Airtel’s Nxtra Data Centre unit.

Looking ahead to 2026, Yusuf said Nigeria remains a key market for Microsoft, but within a broader regional structure.

“Nigeria is part of a multi-cluster region for us,” he said. “Within that context, we are focused on three key priorities. First is continued engagement and partnership with the government. Second is helping organisations and large enterprises achieve their business outcomes. Third is developing our partner ecosystem.”

“These are the core areas we are focusing on as we move into the 2026 calendar year,” he added. “The strategy remains centred on corporate organisations, government, and partners.”

Microsoft already operates data centres in Africa, having launched facilities in Johannesburg and Cape Town in 2019, but for now appears set to serve Nigeria through regional infrastructure rather than committing to a local build.