A key component of the project is a large-scale prefabricated modular data center, which the company says is the biggest of its kind in Nigeria.

With this investment, MTN is positioning itself to compete with established global cloud providers such as AWS, Microsoft Azure, and Google Cloud.

The launch comes at a time when Nigeria is experiencing growing demand for cloud services.

The increase is driven by the spread of mobile applications, online education platforms, and fintech tools.

Additionally, the weakening of the naira against the dollar has made international cloud services more expensive, pushing local companies to seek alternatives within the country.

MTN Nigeria’s CEO, Karl Toriola, described the new facility as one of the largest in West Africa.

He said it would provide significant support to Nigeria’s technology sector and align with government efforts to strengthen digital infrastructure.

So far, MTN has allocated $120 million to the first phase of the data center project, resulting in a capacity of 4.5 megawatts (MW).

An additional $135 million is planned for the second phase, which will double the capacity to 9 MW. The company also hinted at potential future expansions to reach up to 14 MW or more.

The data center is expected to serve a wide range of users, including software developers, banks, oil firms, and government institutions.

These sectors have long relied on foreign cloud services, but MTN aims to provide a local alternative.

Toriola also highlighted the potential for major international platforms like Netflix, Facebook, and Instagram to store data locally, which would enhance service quality and reduce storage costs.

Recent figures from Mordor Intelligence forecast that Nigeria’s cloud computing market will grow from $1.03 billion in 2025 to $3.28 billion by 2030, at an annual growth rate of around 26%.

This expansion is being fueled by developments such as the national rollout of 5G and the increasing use of technologies like artificial intelligence and the Internet of Things (IoT).

MTN intends to maintain naira-based pricing, shielding users from exchange rate fluctuations and offering reduced latency by keeping data within national borders.

According to MTN, Nigeria spends more than $850 million annually on foreign cloud services.

The country’s 2019 Cloud Computing Policy encourages public institutions and SMEs to use domestic service providers where possible.

The telecom company’s involvement in data hosting began in 2001. The construction of the current facility started in July 2023 and has continued over the past year.

MTN is working with the National Information Technology Development Agency (NITDA) and the Nigerian Data Protection Commission to support the local storage of essential data, including for services like national identity and passport issuance.