MTN launches $240 million data centre to challenge AWS, Azure

MTN Nigeria, the nation’s largest telecommunications provider with 84 million subscribers, has fired a bold shot at global tech giants, launching a $240 million Tier III data centre in a strategic pivot to capture Nigeria’s enterprise cloud market. This move directly challenges hyperscalers like Microsoft Azure and Amazon Web Services, which have long dominated the lucrative sector.

The Sifiso Dabengwa Data Centre and Cloud, a 9-megawatt facility, was inaugurated today in Lagos. The first 4.5MW of IT load is now operational, and the remaining 4.5MW is slated to come online in the second phase as demand accelerates, according to the company. The ambitious project, (comprising a $100 million facility and an additional $20 million in cloud infrastructure per phase), marks a significant evolution for MTN Nigeria, which has historically focused its data centre operations on its internal needs.

“This is one of the biggest data centres in West Africa. And probably one of the biggest in Africa,” MTN Nigeria CEO Karl Toriola stated at a press conference. “We believe this is going to be transformative for the technology ecosystem in Nigeria, and we are very supportive of the agenda.”

The move into infrastructure as a service positions MTN to capitalise on the increasing demand for local cloud solutions in Africa’s most populous nation. Nigerian government agencies are reportedly spending as much as $500,000 monthly on cloud services, a clear indicator of the market potential that has attracted MTN’s attention. The company is now setting its sights on high-value clients, including the National Identity Management Commission (NIMC), various state governments, and the nation’s vibrant startup ecosystem.

While homegrown cloud providers like Nebula by Okra, Nobus, and Layer3 have emerged as affordable local alternatives, MTN is confident that its substantial investment and expansive reach will enable it to compete effectively with the global hyperscalers. The company plans to leverage its established brand and customer base to its advantage.

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This strategic shift will see MTN Nigeria operate across connectivity, infrastructure, and platform services, Toriola explained. The company intends to introduce a pay-as-you-go model, a 15-20% discount, with all services priced in the local naira currency—a potential competitive edge against the dollar-denominated pricing of global competitors.

The data centre will initially be powered by an Independent Power Producer (IPP), with plans to integrate solar energy within the next year, addressing Nigeria’s notorious power supply challenges.

MTN is no newcomer to data centres, having built its first facility in Ojota in 2000 to manage its vast subscriber base. However, this new venture is a clear and calculated entry into the enterprise services, signalling a new era of competition in Nigeria’s local cloud market.