Open Access Data Centres (OADC), a subsidiary of the WIOCC Group, is embarking on a significant expansion of its data center facility in Lagos, Nigeria. The project aims to increase the center’s capacity to a substantial 24 megawatts (MW) by 2027, representing a massive investment of approximately $240 million. This expansion will be implemented in phases and forms a crucial part of WIOCC’s broader $500 million investment strategy, announced in 2021, focused on developing robust data center infrastructure across the African continent. Currently, the Lagos facility, which also serves as the landing station for Google’s Equiano subsea cable, operates at only 1.5MW, having become operational just two months ago. This ambitious expansion underscores OADC’s commitment to addressing the growing demand for digital infrastructure in Africa.
The financial backing for this ambitious project is being secured through a combination of international finance partners, including prominent institutions like the International Finance Corporation (IFC) and Proparco, a subsidiary of the Agence Française de Développement Group. The financing structure is notably designed as sustainability-linked debt, meaning that the pricing terms are directly linked to WIOCC’s performance in achieving specific sustainability targets. These targets include enhancing the energy efficiency of their data centers and securing EDGE (Excellence in Design for Greater Efficiencies) green building certification for the facilities. This approach not only ensures financial accountability but also incentivizes environmentally responsible development, aligning with the growing global emphasis on sustainable infrastructure projects.
The strategic rationale behind this substantial investment lies in OADC’s vision to establish the Lagos data center as a major hub for West Africa. The facility already boasts Tier III certification, signifying a high level of redundancy and availability, crucial for mission-critical operations. Its power infrastructure, featuring a 33,000-volt power supply and an 11kV distribution network, further reinforces its reliability, with dedicated transformers and power distribution rooms for each phase of the expansion. Beyond its immediate regional impact, the Lagos data center plays a vital role in supporting Nigeria’s burgeoning digital ecosystem, enabling the growth of cloud services, content delivery networks, and improved enterprise connectivity nationwide.
While the projected timeline for each expansion phase is approximately 18 months, CEO Ayotunde Coker acknowledges the inherent complexities of such projects, anticipating that the overall completion could extend beyond two years. This reflects the intricate nature of designing and constructing high-capacity data centers, requiring careful planning and execution to ensure optimal performance and reliability. OADC’s experience, with Coker having previously led Rack Centre, another major player in the African data center market, contributes significantly to their understanding of the challenges and opportunities in this rapidly evolving sector. Their focus on sustainability, combined with Coker’s industry expertise, positions OADC well to navigate the complexities of this ambitious undertaking.
Looking beyond Lagos, OADC’s expansion strategy extends to other key African markets, including the Democratic Republic of Congo and South Africa, where they have operational and planned data centers. This pan-African approach reflects the company’s recognition of the continent’s diverse and growing digital needs. The increasing demand for cloud computing, driven by factors like the rise of artificial intelligence (AI) workloads and the ongoing expansion of internet access, underscores the strategic importance of investing in robust data center infrastructure across the continent. OADC is actively positioning itself as a key enabler of this digital transformation, providing the necessary infrastructure to support the growth of businesses, governments, and communities across Africa.
In conclusion, OADC’s $240 million investment in expanding its Lagos data center is a significant step towards bolstering Africa’s digital infrastructure. The project, financed through sustainability-linked debt, underscores the company’s commitment to environmentally responsible development while simultaneously addressing the surging demand for reliable data center capacity. With plans to expand further within Nigeria and other African markets, OADC is playing a pivotal role in shaping the future of the continent’s digital landscape, facilitating the growth of cloud computing, AI, and enhanced connectivity, thereby contributing to the broader economic and social development of the region. The company’s strategic vision, combined with its focus on sustainability and experienced leadership, positions it well for continued growth and success in this dynamic and increasingly vital sector.
