After Visa, Another Foreign Company Moves to Invest $120m in Lagos to Boost Network Connectivity
- A digital infrastructure company, Rack Centre, has announced that it is set to commission its 12 megawatt Lagos hub, estimated at $120 million
- The company said the centre, called LGS2, will boost connectivity and increase its presence in Africa
- The facility is reportedly touted to be the largest in Africa and will help companies that depend on data for operations
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
A carrier-neutral data centre operator, Rack Centre is set to commission its new 12MW Lagos data hub on April 10, 2025, estimated at $120 million.
The LGS2 centre will increase the digital infrastructure company’s presence in West Africa and add 3,240 square meters of white space and six data halls, with 2MW IT load.
Source: Getty Images
Rack Centre to boost connectivity
The facility will also host four Meet-Me-Rooms, boosting connectivity to international, regional, and local service providers.
According to a Punch report, the minister of Communications and Digital Economy, Bosun Tijani, and the Lagos state governor, Babajide Sanwo-Olu, will attend the commission ceremony.
Rack Centre reportedly operated a 1.5MW facility and said that the expansion aligns with its long-term strategy to boost carrier-neutral connectivity and support data-driven businesses in Nigeria and Africa.
New facility is a $120 million investment
Estimates show that a 1MW data centre costs about $10 million, which means the 12MW facility will cost about $120 million in investment.
The company’s chief executive officer, Lars Johannisson, disclosed that the move is a triple-digit million-dollar investment and the largest in West Africa.
He said that with the commissioning of the project, the operator is increasing the installed base of data centre capacity in Nigeria.
Johannisson said:
“This expansion establishes us as a hyperscale-ready, AI-enabled facility designed to meet the growing demands of Nigeria’s digital economy.”
The Lagos hub is touted as West Africa’s largest AI-ready data centre, equipped with energy-efficient cooling systems and sustainability infrastructure.
The centre will halt capital flight
The investment shows the company’s commitment to supporting Africa’s digital transformation.
Folu Aderibigbe, the company’s chief sales and marketing officer, said the new facility would boost Nigeria’s data sovereignty by ensuring that data generated is stored and processed in the country and remains under national supervision.
He revealed that businesses depending on data storage and processing would benefit from lower operational costs.
Aderibigbe said:
“The facility will reduce capital flight by keeping data in Nigeria, eliminating the need to spend foreign currency on cloud services hosted abroad.”
Visa to build data centre in Nigeria
The development comes a few days after Visa, the international payment company, disclosed plans to establish a data centre in Nigeria.
Vice President Kashim Shettima praised Visa Inc.'s significant investment commitment as the multinational payment solutions provider strives to build data centre infrastructure in Nigeria.
Source: Getty Images
The company's dedication to the Nigerian market was reiterated by Visa's Regional President for Central and Eastern Europe, the Middle East, and Africa (CEMEA), Andrew Torre, during a courtesy call at the State House in Abuja.
According to him, Visa has already made over $1 billion in investments in the nation, including a $200 million investment in Interswitch, a strategic alliance with MoniePoint to improve digital payment systems, and cooperation with ThriveAgric to strengthen food security and assist smallholder farmers.
Torre said:
“While Visa Inc has been making investments and will continue to make these investments in Nigeria, the plan to site the data centre infrastructure is aimed at bringing new technologies into the Nigerian market that would bolster the nation’s growing digital economy.”
Google, others invest $110m in Moniepoint
Legit.ng earlier reported that one of Nigeria’s fintech giants, Moniepoint, which also operates as a microfinance bank, had raised $110 million in equity financing, achieving unicorn status.
Other new investors include Google’s Africa Investment Fund, Verod Capital and Lightrock, an existing investor.
Moniepoint said it would use the funds to accelerate its growth across Africa and build an all-in-one, seamlessly integrated platform for businesses.
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Source: Legit.ng
Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng
Kola Muhammed (Copyeditor) Kola Muhammed is an experienced content strategist who has overseen content and public relations strategies for some of the biggest (media) brands in Sub-Saharan Africa.
