Airtel Nigerian telecommunications company plans to establish a data center in Lagos for the commencement of Artificial Intelligence model training.
Airtel Nigeria and MTN Nigeria Invest in AI-Ready Data Centers
Airtel Nigeria and MTN Nigeria are making significant strides in the digital economy of Nigeria by investing in state-of-the-art data centers. Airtel's focus is on building a hyperscale AI-ready data center, while MTN is concentrating on a broader cloud infrastructure with AI capabilities.
Airtel Nigeria's Strategy
Airtel Nigeria is investing $120 million to develop a 38-megawatt data center in Eko Atlantic, Lagos. The facility, scheduled to go live in 2026, is designed to handle the massive computing loads AI requires. The data center is equipped with advanced GPUs, crucial for AI model training and inference, signaling a shift from traditional cloud storage towards accelerated AI computing infrastructure.
MTN Nigeria’s Approach
MTN Nigeria's approach involves significant investment in local cloud infrastructure but with a broader focus on traditional cloud services alongside AI. MTN has spent $120 million with a further $135 million planned, primarily on a Tier 4 cloud data center aimed to serve local cloud demands, cloud hosting, and associated AI services.
Comparison
While both telcos share a vision to enable Nigeria's growing AI and startup ecosystems by providing local cloud and AI infrastructure, their strategies differ. Airtel distinctly targets AI compute power, while MTN emphasizes comprehensive cloud services with embedded AI capabilities.
| Aspect | Airtel Nigeria | MTN Nigeria | |--------------------------------|------------------------------------------------|--------------------------------------------------| | Investment | $120 million on hyperscale data centre | $120 million spent + $135 million planned on Tier 4 cloud data centre | | Data centre focus | AI-ready with GPUs for accelerated compute | Local cloud infrastructure with AI services included | | AI strategy | Prioritizes AI compute capacity and AI workloads | Broader cloud and AI service offering | | Alignment with national policy| Strong alignment with Nigeria’s National AI Strategy for local compute infrastructure | Also supports local data sovereignty and cloud economy growth | | Pricing and market approach | Focused on enabling AI ecosystem with high compute power | Focus on competing with global cloud players by pricing and local hosting | | Location | Eko Atlantic, Lagos for infrastructure reliability | Various locations with Tier 4 standards |
The Race for Modern Digital Infrastructure
The race to build modern digital infrastructure in Nigeria is intense, with each player betting on the country's growing appetite for AI, cloud computing, and high-speed connectivity. The 2024 draft National AI Strategy of Nigeria flagged the need to address the gap in local AI infrastructure as critical. Airtel Nigeria's investment in a hyperscale data center is a significant step towards improving Nigeria's AI capabilities and digital economy. If the trend continues, Nigeria could soon have the local muscle, both in hardware and expertise, to become one of Africa's most capable AI hubs.
[1] Airtel Nigeria's AI-Ready Data Center: [Link] [2] MTN Nigeria's Cloud Data Center: [Link] [3] Nigeria's National AI Strategy: [Link] [4] Airtel's Investment in Network Improvements: [Link] [5] MTN's Investment in Network Improvements: [Link]
The investment of $120 million by Airtel Nigeria towards an AI-ready data center equipped with advanced GPUs underlines their focus on data-and-cloud-computing technology and artificial-intelligence. Concurrently, MTN Nigeria's strategy involves significant investments in local cloud infrastructure, encompassing both traditional cloud services and AI capabilities. Here, the emphasis is broad, providing a comprehensive range of cloud and AI services rather than solely prioritizing AI compute power like Airtel Nigeria.
