Nigeria IaaS Market Size and Forecast by Offering, Deployment Model, Organization Size, Subscription Model, and End User Industry: 2019-2033

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Industry Assessment Overview

Industry Findings: Nigeria’s adoption trajectory is being driven by the simultaneous emergence of large domestic hyperscale projects and telco-led wholesale cloud plays, which together transform enterprise appetite for in-country redundancy and latency-sensitive services; Equinix/MainOne expansion activity in Lagos (Apr-2025) illustrates how new capacity corridors are shifting workload placement decisions from offshore to Lagos-based on-ramps. This dynamic elevates the commercial value of local interconnect and banking-grade compliance.

Industry Progression: A concrete progression milestone is MTN Nigeria’s first-phase launch of its US$235 million data centre in Lagos in Jul-2025, delivering several megawatts of capacity and hundreds of racks to the market. That launch materially increases domestic compute headroom for telco, fintech and e-commerce players, shortens procurement lead times for high-availability projects, and raises competitive pressure on established campuses to add GPU and managed-services racks.

Industry Player Insights: With many companies present in the space, some are MTN Nigeria, Equinix, Rack Centre, and MainOne etc. The vendor mix shows telco, global and local operators competing for market share: Rack Centre’s earlier campus builds and MainOne/Equinix LG2.3 expansions (Apr-2025) combine with MTN’s Jul-2025 DC debut to broaden hosting choices, improve interconnect density, and accelerate enterprise migration from on-prem to hybrid and sovereign-enabled cloud deployments.