Data Centres Set to Drive Nigeria’s Next Property Growth Cycle — Report

Emerging property sectors, particularly data centres, are projected to expand almost fourfold in Nigeria by the end of the decade, according to a new report by Estate Intel.

The report notes that since the COVID-19 pandemic strengthened the case for data centres as a resilient real estate asset class in 2020, Nigeria’s data centre stock has grown at an average annual rate of 21 per cent. This growth trajectory is expected to continue through 2030, supported by rising digital demand and increased interest from major global operators such as Equinix, OADC, and Digital Realty.

While several traditional property segments have faced headwinds in recent years, the data centre sector has recorded steady and consistent expansion. Historically, the market has been dominated by local operators and investors, including 21st Century Technologies, Rack Centre (formerly Jagal), and MainOne. Between 2020 and 2024, a total of 14 data centres were completed in Nigeria, each with a median capacity of 1.5 megawatts (MW).

Looking ahead, Estate Intel projects a significant acceleration in capacity delivery. Between 2025 and 2030, Nigeria’s total data centre capacity is expected to increase from 56.1 MW to over 218 MW, representing growth of more than 3.7 times within five years. During this period, the median capacity of newly delivered facilities is projected to rise to 4.5 MW, compared with the 1.5 MW average recorded in the previous five-year window.

The report also highlights the emergence of larger-scale developments within the pipeline. Notable projects currently under construction include Airtel’s 38 MW Nxtra Data Centre in Eko Atlantic and OADC’s 24 MW facility along the Lekki Corridor, underscoring the shift toward higher-capacity, hyperscale-oriented infrastructure.

Beyond data centres, the report observes a broader structural shift in Nigeria’s commercial real estate market over the past decade. Owner-occupiers are increasingly accounting for a larger share of property acquisitions and development completions, particularly when compared with the preceding ten-year period.

Although owner-occupiers and partial owner-occupiers do not yet dominate Lagos’ acquisition and completion activity, their participation is expanding rapidly. Between 2006 and 2015, most developments were led by large pan-African private equity funds, with limited involvement from corporate owner-occupiers. However, the subsequent decade saw increased owner-occupier participation through landmark developments such as the First Custodian Headquarters, Ecobank Pan-African Centre, and Famfa Oil Tower.

Recent acquisitions further reinforce this trend, including a Sahara-related company’s purchase of Madina Tower, Rain Oil’s acquisition of 35 Kofo Abayomi Street, and a development finance institution’s acquisition of a 50 per cent stake in The Pantheon.

According to Estate Intel, this shift has important implications for office asset owners considering exits or disposals in the coming years. Indigenous companies without dedicated headquarters are expected to play a growing role in acquisition strategies, reshaping demand dynamics within Nigeria’s commercial property market.