Open Access Data Centres (OADC), a subsidiary of the West Indian Ocean Cable Company (WIOCC), has unveiled plans for a $240 million, 24-megawatt (MW) hyperscale data center in Lagos.
The project will be executed in two phases, with the first 12MW set to be completed within 18 months. This expansion marks a major milestone in Africa’s digital infrastructure landscape, reinforcing OADC’s commitment to delivering open-access, hyperscale data centers that enable connectivity, cloud integration, and digital transformation across the continent.
Building a world-class data centre requires significant investment. Industry estimates suggest that constructing 1MW of data centre capacity costs approximately $10 million, though efficiencies can reduce costs to $8 million per MW. For its 24MW project, OADC is investing an estimated $240 million, funded through a mix of equity and debt. The company has secured partnerships with major financial institutions, including the International Finance Corporation (IFC) and Proparco, and was among the first in the region to secure a sustainability-linked loan.
CEO of OADC, Dr. Ayotunde Coker, while speaking to journalists, on Wednesday, in Lagos, highlighted the significance of this development in meeting the growing demand for scalable, high-capacity data centers in Africa, adding that, “This project is a game-changer for Nigeria’s digital economy. With hyperscale capacity and AI-readiness, our Lagos facility will be one of the largest and most advanced in West Africa. It will set new benchmarks for scalability, resilience, and efficiency, ensuring that Nigeria remains at the forefront of Africa’s data centre revolution.”
The new data centre will be part of a larger four-hectare digital infrastructure campus, designed to accommodate future expansion and evolving technological demands. OADC’s rapid expansion is underpinned by the strategic vision of its parent company, WIOCC, a pioneer in Africa’s wholesale connectivity sector. Founded 16 years ago, WIOCC played a critical role in financing the EASSy submarine cable, which connects Africa’s east coast to the global internet. Under the leadership of CEO Chris Wood, the company has expanded significantly, securing capacity on major subsea cables such as WACS, ACE, and 2Africa, while also developing extensive terrestrial fiber networks across South Africa, Nigeria, and other regions.
In Nigeria, WIOCC is actively deploying national long-distance fiber and metro networks in Lagos, strengthening the backbone of the country’s digital ecosystem. Its business model is unique, focusing exclusively on supporting ISPs, mobile network operators, and cloud providers rather than selling directly to enterprises. This ensures open, scalable connectivity for the broader telecommunications industry. OADC’s Lagos campus will be developed in two 12MW phases, supporting the exponential growth of cloud services, AI workloads, and enterprise digital transformation.
The data center will provide critical infrastructure for global and local hyperscale clients, ensuring low-latency access to cloud platforms such as Microsoft Azure and Oracle Cloud. The facility will be powered by dedicated lines from the Jakande transmission hub, with a secondary feed from Ajah for redundancy. In addition, OADC is exploring alternative energy solutions, including gas-based power and potential renewable energy integration, to enhance sustainability.
Beyond Lagos, Coker disclosed that OADC is executing an ambitious core-to-edge strategy, deploying hyperscale core data centers in major cities while also rolling out smaller edge data centers in emerging locations. “This approach ensures that businesses across Africa have access to low-latency, high-performance digital infrastructure. Existing facilities include a flagship data center in Lagos, with planned expansions in Abuja and Port Harcourt. All OADC core facilities adhere to the highest industry standards, including Uptime Institute Tier III certification, ISO 27001 compliance, and PCI DSS certification,” he stated.
Securing reliable power is one of the biggest challenges for hyperscale data centers, the CEO averred, even as he affirmed that OADC has developed a multi-faceted energy strategy to address this challenge, integrating traditional and renewable energy sources for long-term sustainability. “The Lagos facility will initially connect to EKDC’s dedicated transmission line, feeding into OADC’s own power farm. As the campus scales, a second transmission link from the HR substation will be added, ensuring redundancy and reliability. Additionally, OADC is exploring Independent Power Producer (IPP) solutions using gas-based energy, leveraging Nigeria’s abundant gas resources to reduce reliance on diesel generators.
“Renewable energy integration is also a key focus. While on-site solar generation is limited due to space constraints, OADC is evaluating power wheeling options to source hydroelectric and solar power from external locations. This model, already implemented in South Africa, could help enhance the facility’s environmental, social, and governance (ESG) credentials,” he stated.
The demand for data center capacity in Nigeria is growing rapidly, with major global players investing in the region. Lagos, in particular, is emerging as Africa’s next major data center hub, second only to Johannesburg. Several large-scale facilities are currently under development, including Rack Centre’s expansion, Nxtra’s 20MW facility, Cassie’s 5MW project, and Equinix’s continued investment in the region. Given this growth, efficient power management and sustainable energy strategies will be critical for long-term success. Coker emphasized that the project timeline is aggressive but achievable, adding that, “A development of this scale typically takes 2.5 to 3 years, but we are accelerating delivery to meet demand. We will bring sections online incrementally, ensuring our clients can scale up seamlessly.”
With Africa accounting for less than 2 percent of the world’s data centers, there is enormous potential for growth. By building high-quality, hyperscale facilities, OADC is helping to attract global cloud providers and enterprises to Nigeria and the broader West African region. “As we scale, we remain committed to right-first-time engineering, operational excellence, and sustainability. Our goal is to create a digital infrastructure ecosystem that enables innovation, drives economic growth, and positions Africa as a global technology hub,” Coker assured.
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