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MTN CEO Reveals AI Data Centre Push, as Telcos Compete for Africa’s Digital Future

MTN CEO Reveals AI Data Centre Push, as Telcos Compete for Africa’s Digital Future
Monday, 22 September 2025 10:58
  • MTN is building a $240m AI data centre in Nigeria under its Genova unit.
  • Africa holds less than 2% of global data centre capacity despite 18% of the population.
  • The global B2B cloud and data services market could reach $622bn by 2030.

MTN Group Ltd is in commercial talks with US and European partners to co-build artificial intelligence data centres across Africa, Chief Executive Ralph Mupita told Bloomberg in an interview published on September 16.

MTN has already broken ground on its first such facility in Nigeria, with an investment of about $240 million under its new unit, Genova. The plan is to provide AI computing power directly to African businesses and governments, while also leasing capacity to global cloud giants like Microsoft. “We are now in the commercial negotiation phase and shortlisting partners who can help us scale,” Mupita said, adding that the group’s goal is to finalise partnerships before the end of the year.

Despite hosting 18% of the world’s population, Africa accounts for just 1–2% of global data centre capacity, according to Xalam Analytics and Oxford Business Group. This mismatch has left the continent dependent on offshore infrastructure, raising costs, creating latency problems, and sparking sovereignty concerns over sensitive data. AI intensifies these pressures, given the immense computing power and energy needed to train and deploy models. By localising this infrastructure, MTN and its rivals aim to bring down costs, improve performance, and ensure African data stays within African borders.

MTN’s ambitions come as rivals ramp up their own bets. Airtel Africa, through its Nxtra subsidiary, is building a 38MW hyperscale facility in Lagos and a 44MW data centre in Nairobi’s Tatu City, projects that will rank among Africa’s largest. Microsoft and Abu Dhabi’s G42 are backing a geothermal-powered data hub in Kenya, while Equinix and other global players are eyeing expansions in South Africa and beyond.

By integrating AI-ready data centres with their fibre, 5G, and cloud services, operators like MTN and Airtel can offer bundled solutions tailored to local markets. This model allows them to monetise infrastructure, deepen ties with multinationals, and serve governments seeking sovereign digital solutions.

Locally hosted data reduces reliance on overseas servers, cutting costs and improving performance for everything from fintech apps to e-commerce platforms. Faster and more reliable digital services can help businesses scale, boost consumer access, and strengthen government platforms. Crucially, keeping data on the continent also addresses sovereignty concerns around sensitive information. In addition, the build-out of large-scale facilities is expected to generate skilled jobs in engineering, cybersecurity, and AI development, while giving startups the tools to build solutions tailored to local realities.

Nigeria’s Dabengwa Tier III Data Centre, which MTN launched in July and is already planning to upgrade to Tier IV, illustrates how the narrative is shifting. “This investment is not just about infrastructure, but a powerful vote of confidence in Nigeria’s digital economy,” said Communications Minister Bosun Tijani at the opening. Such projects, he argued, create resilience, reduce costs, and give local businesses a competitive edge.

Africa’s data centre gap is estimated at more than 1,000MW of additional capacity and 700 facilities over the next few years, according to Oxford Business Group. With the GSMA projecting a $622 billion global B2B cloud and data services market by 2030, African operators see AI data centres not as a side business, but as the next frontier.

The move reflects a structural shift in Africa’s telecoms sector. With traditional voice and data margins under pressure, operators are pivoting into cloud hosting, colocation, and AI infrastructure to capture enterprise and government demand. By investing in high-margin digital services, MTN is not just diversifying revenue streams but also positioning itself as a backbone for Africa’s digital economy.

Hikmatu Bilali

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