South African infrastructure investor INFRAGORA Global Capital is preparing to build two artificial intelligence-ready data centres in Nigeria, with construction expected to begin in the second and third quarters of 2027. The project is estimated to cost between $650 million and $1 billion.
The investment comes as demand for computing power rises alongside the adoption of artificial intelligence and cloud services, putting pressure on African markets to expand their digital infrastructure.
The proposed facilities will form part of INFRAGORA’s AFRIDATA platform. The company is completing technical assessments and design work, with financial close expected before construction starts, Kiel Odiogo said.
Although the company has outlined the project’s estimated cost, it has not disclosed how much financing has been secured or named its investors. Odiogo said the project had attracted support and commitments from regional and international institutional investors, but confidentiality agreements prevented the company from providing further details.
The US Trade and Development Agency (USTDA) is funding a feasibility study to assess the project’s technical and financial requirements, including its ability to handle demanding AI workloads. The agency’s involvement is also expected to open opportunities for American companies supplying computing equipment, cloud systems, networking infrastructure and cybersecurity technology.
Nigeria is already attracting interest from investors looking to build large-scale computing facilities. Kasi Cloud, for instance, is developing a proposed 100-megawatt data centre in Lagos, with an estimated initial capitalisation of $250 million.
INFRAGORA’s ambitions extend beyond Nigeria. The company estimates that its wider African data centre platform could require between $3 billion and more than $5 billion, with plans to add 300MW to 550MW of capacity across Ghana, Côte d’Ivoire, Kenya, Tanzania, Angola, South Africa and Egypt.
Electricity could determine the project’s success
One of the biggest questions surrounding the Nigerian project is how INFRAGORA will secure enough reliable electricity to operate its facilities.
Data centres require continuous power to run servers and cooling systems, while AI workloads can consume significantly more energy than conventional computing. In Nigeria, where businesses frequently contend with unreliable grid supply and high energy costs, securing dependable electricity will be central to the project’s commercial viability.
INFRAGORA plans to build a 160MW to 200MW power plant combining gas and renewable energy, with battery storage to support supply. Electricity will be sourced through Ocha Energy, its sister energy platform, with long-term power purchase agreements intended to provide greater cost certainty.
The proposed plant would initially support 80MW to 100MW of data centre capacity. The company may sell excess electricity to other infrastructure operators, energy traders or the national grid, depending on what is feasible.
However, INFRAGORA has yet to disclose the power plant’s construction schedule, the proportion of electricity expected to come from renewables or the prices customers will pay for power.
Those details will matter as the company seeks to compete for customers that need dependable computing capacity without incurring prohibitive operating costs.
Local data centres target growing AI demand
INFRAGORA intends to sell computing, cloud and disaster recovery services to businesses, government agencies, local data centre operators and international cloud providers.
The company believes demand will grow as more African organisations move their operations online and adopt AI tools. Keeping computing infrastructure within the region could also help businesses reduce delays when accessing applications and retain sensitive information closer to home.
Its proposed facilities are expected to meet Tier III+ and Tier IV standards, which are associated with high levels of reliability and infrastructure redundancy. Tier III facilities allow maintenance without shutting down operations, while Tier IV facilities are designed to continue operating despite individual equipment failures.
But the company has not provided key technical details, including the number of AI processors it plans to deploy, storage capacity or targeted network performance. These specifications will help determine how much AI computing the facilities can actually support.
The investment also comes against a wider infrastructure gap. Africa accounts for less than 2% of global data centre capacity, according to USTDA, leaving businesses dependent on facilities outside the continent for some computing and storage services.
INFRAGORA says its platform will help address that shortfall while supporting data sovereignty. Odiogo said African and institutional investors would retain ownership and control of the project, which would operate under applicable data protection laws and government regulations.
However, local ownership does not necessarily mean technological independence. The planned use of American hardware and software raises questions about how much control Nigerian businesses will have over the systems that process and store their data.
USTDA’s involvement is also designed to create opportunities for American technology suppliers. The extent to which the project strengthens Nigeria’s own technology industry will depend on its procurement decisions, data-access arrangements and opportunities for local companies to develop expertise.
Training and startup funding form part of the plan
INFRAGORA is also planning an ICT business park and the AFRIDATA Academy, which would train people in artificial intelligence, machine learning and information security.
The proposed academy would combine technical education with an innovation hub to help startups develop AI applications for local markets. Its target groups include government workers, small businesses, established companies and young entrepreneurs.
“The AFRIDATA Academy will combine world-class AI training with job-placement pathways and startup support, helping governments and businesses adopt AI while enabling entrepreneurs to develop local solutions for key industries,” Odiogo said.
The company expects its wider African platform to generate tens of thousands of direct and indirect jobs, particularly for young people and women. It also plans to establish an innovation fund to support startups building AI products for agriculture, healthcare, energy and financial services.
In Nigeria, INFRAGORA said it is working with Lagos Business School on the platform’s continental rollout. Its broader programme also includes a partnership with the Massachusetts Institute of Technology.
For now, the proposed data centres remain dependent on completing assessments, securing financing and developing the supporting power infrastructure. Until those steps are completed, the investment’s final cost, delivery timeline and contribution to Nigeria’s AI capacity remain uncertain.