A $400 million data center powered by natural gas is planned for Nigeria, a project intended to bolster the country’s rapidly growing digital infrastructure and address increasing demand for local data storage. The facility, announced by West African energy company Tetracore Energy Group in partnership with Huawei and Inspirive Technologies, represents a significant investment in Nigeria’s digital economy and a novel approach to powering data centers in the region. This natural gas-powered data center aims to provide reliable and sustainable power, a critical challenge for data storage and processing in many parts of Africa.
The planned 20-megawatt Tier III facility will be located at Tetracore’s energy park in Atakobo, Ogun State, southwestern Nigeria. Construction is anticipated to take between 10 and 12 months, according to the companies involved. The project comes as Nigeria experiences a surge in demand for data center capacity, driven by expanding businesses, government initiatives, and a growing tech startup scene. Nigeria’s strategic location and expanding internet penetration are key factors driving this growth.
Addressing Nigeria’s Power Challenges with Integrated Energy
A central element of this project is the integration of energy and technology. Tetracore will leverage its existing 100-megawatt on-site independent power plant, fueled by 6.2 million standard cubic feet per day (MMscf/d) of natural gas, to power the data center. This approach is designed to circumvent the often-unreliable national grid, a persistent obstacle to digital infrastructure development in Nigeria. According to the World Bank, approximately 45% of Nigerians do not have access to electricity as of 2023. World Bank – Nigeria Overview
“Sustainable digital transformation is fundamentally dependent on reliable energy infrastructure,” said Olakunle Williams, President and CEO of Tetracore Energy Group. “This project reflects our ability to integrate energy and technology at scale, creating platforms that enable long-term economic growth. The Tetracore Energy Park was deliberately designed to support projects of this magnitude, and this development reinforces our commitment to execution in complex environments.”
A Collaborative Effort to Strengthen Digital Infrastructure
The partnership brings together diverse expertise. Tetracore provides the energy infrastructure and local knowledge, while Huawei contributes its global experience in data center technologies. Inspirive Technologies, a Nigerian firm, is providing local technological expertise and project management. Williams Abiola, CTO of Inspirive Technologies, emphasized the project’s importance, stating, “This development marks a major milestone in strengthening Nigeria’s digital backbone. By combining local expertise with global technology partnerships, we are delivering a scalable, world-class data center capable of supporting enterprise growth, cloud adoption, and long-term digital transformation.”
A representative from Huawei Nigeria added, “Huawei is proud to contribute its global expertise in data centre technologies to this project. Together, we are delivering a high-performance, energy-efficient facility aligned with international standards, supporting Nigeria’s rapidly expanding digital ecosystem.”
Nigeria’s Growing Data Center Market
Nigeria is rapidly becoming a key hub for data centers in Africa. Data Center Map currently lists around 25 facilities operated by 15 companies within the country. Data Center Map – Nigeria This growth is fueled by increasing internet penetration, a young and tech-savvy population, and a growing demand for cloud services. In November 2023, Equinix announced plans for a $22 million data center in Lagos, further demonstrating the growing investor confidence in the Nigerian market. Data Center Dynamics – Equinix Lagos Data Center
Serving Diverse Sectors
The new data center is expected to serve a broad range of sectors, including finance, telecommunications, government, technology, startups, and educational institutions. The facility’s Tier III standards ensure high levels of availability and reliability, making it suitable for mission-critical applications. Tier III data centers are designed to ensure no single point of failure, with redundant components and multiple independent distribution paths. What we have is particularly important for sectors like finance and healthcare, where data security and uptime are paramount.
Tetracore’s Expansion into Digital Infrastructure
Tetracore Energy Group, active in Nigeria and Ghana, specializes in gas processing, power generation, and compressed natural gas production. This data center project marks the company’s first foray into the digital infrastructure sector, representing a strategic diversification of its business portfolio. The company’s existing energy park provides a solid foundation for the data center, ensuring a reliable and cost-effective power supply. Tetracore’s experience in managing complex energy projects in challenging environments positions it well for success in this new venture.
The project’s success could pave the way for similar integrated energy and data center developments across Africa, addressing the critical need for reliable and sustainable digital infrastructure. The combination of local expertise and international partnerships is proving to be a winning formula for driving digital transformation in emerging markets.
The next key milestone for the project is the commencement of construction, scheduled to begin in the coming months. Tetracore has not yet announced a specific start date, but anticipates finalizing all necessary permits and approvals shortly. Updates on the project’s progress will be available on the Tetracore Energy Group website.
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