AI Boom, Data Centres Driving Global Transformer Demand — FG

The federal government has attributed the growing global demand for transformers to rising electricity needs driven by artificial intelligence (AI) and data centres, warning that Nigeria must plan ahead to secure critical equipment for its transmission infrastructure.

The Minister of Power, Joseph Tegbe, disclosed this while responding to questions from State House correspondents after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.

Tegbe explained that high-capacity transformers, particularly 300-megavolt-ampere (MVA) units, were specialised equipment that could not simply be purchased off the shelf.

According to him, the transformers require custom manufacturing, a process that typically takes between three and six months.

“300 MVA transformers are specialised, high-capacity equipment that cannot simply be purchased off the shelf,” the minister said.

He added that the growing electricity requirements of AI infrastructure and data centres had intensified global demand for transformers, making it necessary for Nigeria to plan its procurement well in advance.

“There is currently strong global demand for transformers, partly driven by the growing electricity needs of artificial intelligence and data centres,” Tegbe said.

“Nigeria must therefore plan ahead to secure the equipment required for its transmission infrastructure.”

The minister noted that some Nigerian companies, including Skipper Steel, had the capacity to manufacture or assemble transformers. However, he explained that the specialised nature of 300MVA transformers meant that their production required additional time and planning.

On power equipment stranded at the nation’s ports, Tegbe said the government was working with relevant authorities to clear containers that had remained at the ports for more than 20 years.

He clarified that the containers were not empty, explaining that they contained equipment whose condition needed to be assessed before decisions could be taken on their deployment.

“Regarding the containers at the ports, these are not empty containers. Some have remained there for more than 20 years,” he said.

According to the minister, the government intends to retrieve the equipment and engage experts to determine which items can still be used.

“We intend to clear them in collaboration with the relevant authorities, bring the equipment in, and engage experts to assess its condition,” he said.

Tegbe added that obsolete equipment would be identified for appropriate action, while items found to be useful would be repaired or refurbished and deployed for suitable purposes.

“Where equipment is obsolete, we will determine the appropriate action. Where it remains useful, we will repair or refurbish it and deploy it for the appropriate purposes,” he said.