Nigeria Data Center Rack Market Size
| Study Period | 2019 - 2030 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2030 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 23.20 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Nigeria Data Center Rack Market Analysis
The Nigerian data center rack market reached a volume of over 9,000 units in the previous year, and it is further projected to register a CAGR of 23.2% during the forecast period. The increasing demand for cloud computing among SMEs, government regulations for local data security, and growing investment by domestic players are some of the major factors driving the demand for data centers in the country.
Under Construction IT Load Capacity: The upcoming IT load capacity of the Nigeria data center rack market is expected to reach 220 MW by 2029.
Under Construction Raised Floor Space: The country's construction of raised floor area is expected to increase to 0.6 million sq. ft by 2029.
Planned Racks: The country's total number of racks to be installed is expected to reach 32,000 units by 2029. Johannesburg is expected to house the maximum number of racks by 2029.
Planned Submarine Cables: There are close to eight submarine cable systems connecting Nigeria, and many are under construction.
Nigeria Data Center Rack Market Trends
Cloud segment to hold major share in the market
- The increasing adoption of cloud-based services is driving the expansion of retail and wholesale colocation services in Nigeria, resulting in increased demand for space in data centers and, consequently, the need for more racks within data centers.
- Cloud services are growing in popularity in Nigeria. The need for big data integration and the demand for more remote work and data migration to the cloud are driving the use of domestic cloud data centers.
- Additionally, Nigerian data center providers are gradually collaborating with local and international technology companies to offer a wide range of services to their customers. For example, Galaxy Backbone has completed the construction of approximately 2.2 petabytes of Tier 4 data centers to provide cloud and disaster recovery services.
- With the rise of the digital economy and increased internet usage in Nigeria, the need for data storage and processing has increased. The proliferation of hybrid cloud service providers has increased demand for colocation services and increased rack utilization.
- With the introduction of government initiatives such as the Cloud Computing Policy (2019), which aimed to promote the spread of cloud services in the country, the use of data centers to store large amounts of data has increased, and with it, the demand.
Full rack segment to hold major share in the market
- In Nigeria, full racks hold the majority of the market share due to the growing space shortage among various companies. Building a fully racked data center is necessary to cope with increasing rack capacity due to increased analytics combined with mobile broadband, e-commerce, and cloud computing.
- The introduction of electronic payments in Nigeria has encouraged payment service providers to enter the country, highlighting the country as a promising market. This encourages the use of data centers to store information and increases the use of data center racks.
- As businesses generate massive amounts of data every day, they are increasingly relying on data centers to efficiently manage their databases and storage. A major factor driving the use of data center racks, therefore, is the increasing use of fully configured data centers.
- In addition, market growth is influenced by rising demand for IT services and investment by large enterprises.
- The introduction of high-density applications by various end-users such as IT and telecommunications, media, and entertainment creates opportunities for increased use of full racks in data centers. Nigeria's online commerce and financial technology is powered by a rapidly growing youth population, increasing spending power, and smartphone penetration. These factors correspond to the increasing use of full racks in data centers.
Nigeria Data Center Rack Industry Overview
The Nigerian Data center racks market is relatively low in terms of competition and has a few players in the market, such as Vertiv Group Corp., Dell Inc., Eaton Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, and nVent Electric PLC. These major players focus on expanding their customer base in the country. These companies leverage strategic collaborative initiatives to increase their market share and profitability. The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers.
In April 2023, Rack Centre is planning to build a 12MW data center in the Ikeja area of Lagos, Nigeria. The new facility will be known as the Rack Centre LGS 2 and will be situated on a 20,000 sqm (215,280 sq ft) greenfield site.
In December 2022, WIOCC launched a data center in Lagos through its Open Access Data Centres platform. The facility was planned to support up to 20MW of site load across more than 7,200 sqm (77,500 sq ft) of white space, enough for 3,200 racks, and can be scaled up to 40MW.
Nigeria Data Center Rack Market Leaders
Eaton Corporation
Rittal GMBH & Co.KG
Schneider Electric SE
Dell Inc.
Vertiv Group Corp.
*Disclaimer: Major Players sorted in no particular order
Nigeria Data Center Rack Market News
The increase in the data center construction corresponds to increasing demand for the number of racks in the data centers. For instance:
April 2023: OADC has invested USD 500m in the Lagos data center. The OADC Lagos LOS1 is a purpose-built, high-specification data center situated on a prime four-hectare site in Lekki, making it the largest data center campus in West Africa.
September 2022: Cassava Technologies to construct a 10-megawatt data center in Lagos. The project completion and commissioning are projected to be completed by 2024. This is expected to further drive the demand for data center racks in the country.
Table of Contents
1. INTRODUCTION
1.1 Study Assumption & Market Definition
1.2 Scope of the Study
2. Research Methodology
3. Executive Summary
4. Market Dynamics
4.1 Market Overview
4.2 Market Drivers
4.2.1 Increased Migration to Cloud-based Business Operations
4.2.2 Internet Adoption and Information Technology Services to Boost Market Progress
4.3 Market Restraints
4.3.1 Low Availability of Resources
4.4 Value Chain / Supply Chain Analysis
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Buyers/Consumers
4.5.2 Bargaining Power of Suppliers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitute Products
4.5.5 Intensity of Competitive Rivalry
4.6 Assessment of COVID-19 Impact
5. MARKET SEGMENTATION
5.1 Rack Size
5.1.1 Quarter Rack
5.1.2 Half Rack
5.1.3 Full Rack
5.2 End-User
5.2.1 IT & Telecommunication
5.2.2 BFSI
5.2.3 Government
5.2.4 Media & Entertainment
5.2.5 Other End-Users
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Eaton Corporation
6.1.2 Rittal GMBH & Co.KG
6.1.3 Schneider Electric SE
6.1.4 Vertiv Group Corp.
6.1.5 Dell Inc.
6.1.6 nVent Electric PLC
6.1.7 Hewlett Packard Enterprise
6.1.8 Micoview Nigeria
6.1.9 Legrand
6.1.10 Millennial Rack
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Nigeria Data Center Rack Industry Segmentation
A data center rack is a physical enclosure made up of usually steel housing electronic framework. It is designed to house servers, networking and communication devices, cables, and other data center computing peripherals.
The Nigerian Data Center Rack Market is Segmented by Rack Size (Quarter Rack, Half Rack, Full Rack) and by End User (IT & Telecommunication, BFSI, Government, and Media & Entertainment). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
| Rack Size | |
| Quarter Rack | |
| Half Rack | |
| Full Rack |
| End-User | |
| IT & Telecommunication | |
| BFSI | |
| Government | |
| Media & Entertainment | |
| Other End-Users |
Frequently Asked Questions
What is the current Nigeria Data Center Rack Market size?
The Nigeria Data Center Rack Market is projected to register a CAGR of 23.20% during the forecast period (2024-2030)
Who are the key players in Nigeria Data Center Rack Market ?
Eaton Corporation, Rittal GMBH & Co.KG, Schneider Electric SE, Dell Inc. and Vertiv Group Corp. are the major companies operating in the Nigeria Data Center Rack Market .
What years does this Nigeria Data Center Rack Market cover?
The report covers the Nigeria Data Center Rack Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Nigeria Data Center Rack Market size for years: 2024, 2025, 2026, 2027, 2028, 2029 and 2030.
Nigeria Data Center Rack Market Industry Report
Statistics for the 2024 Nigeria Data Center Rack market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Nigeria Data Center Rack analysis includes a market forecast outlook to for 2024 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.
