Africa has developed an appetite for digital services. From education, to health, to financial services, and financial markets, the continent’s young population is driving the need to meet demand for these services.
Despite this demand, many African nations lack the capacity for digital services, especially when data sovereignty laws dictate that information required by these services remain in-country. African Continental Free Trade Area Secretariat Secretary-General Wamkele Mene said in July that by the end of 2035, 700 data centers would be needed to process and manage the data of citizens on the continent.
In a bid to meet that call MTN Group, one of Africa’s largest telecommunications providers, announced in August that its Digital Infrastructure arm, also known as Bayobab, would be establishing a joint venture called Africa Data Hub Holding. The firm partnered with a UAE-based data center investment platform founded by Tarek Al Ashram. This new venture would be tasked with building AI-enabled data centers with a total capacity of 150 MW in Africa, and the MTN believes the best place to start is South Africa and Nigeria.
Both of these markets are expected to see incredible growth in their data center markets between 2026 and 2031. Research and Markets puts South Africa’s market hitting a value of US$ 5.28 billion by 2031 while Nigeria will reach US$ 1.09 billion in the same year. Nigeria’s CAGR is pegged at 24.99 percent while South Africa’s is much lower at 12.90 percent but is the largest market on the continent today.
Mazen Mroué, MTN Digital Infrastructure Chief Executive Officer, speaking with w.media highlighted that in addition to their growth potential, Nigeria and South Africa are two of MTN’s biggest markets. In South Africa the telco has 92.2 and in Nigeria it has as many as 39.5 million customers. As the CEO tells w.media, the choice to start its data center buildout in these two nations was a condition of the MTN Group Board approving the joint venture.
“We received approval from our Group Board to proceed with this programme with three mandates: establish a partnership, start in markets we already exist in, and focus on greenfields,” says Mroué.
“MTN already owns many data centers across markets but they are mostly used by MTN for its own core services and enterprise businesses. Many of those data centers require some additional work to become AI-enabled data centers,” says Mroué.
Greenfield projects are central to Africa Data Hub’s initial strategy. While brownfield and retrofitting projects are consideration, the focus is on establishing a solid footing before taking on retrofits of brownfields.
“We are implementing the programme in two phases, beginning with a greenfield approach. Once we have established a solid foundation, demonstrated tangible progress, and achieved key strategic milestones, we will revisit the brownfield opportunity,” he continued.
Pace doesn’t change the destination
Ralph Mupita, MTN Group’s Chief Executive Officer, has said that the firm is targeting 150 MW of capacity in its first phase of the programme. South Africa’s data center capacity currently sits between 350 to 450 MW with capacity in Nigeria sitting at approximately 136 MW.
While committed to addressing the growing demand for locally accessible compute infrastructure, Mroué tells w.media that MTN is approaching its 150 MW buildout with the understanding that it will need a clear plan for how the capacity will be developed and brought to market.
“We believe there is significant market demand, and our priority is to address it through the right strategic partnerships and operating model. The 150 MW represents the first step in a longer-term plan to build data centre capacity across Africa, with the flexibility to expand as market demand evolves. Our consideration is to employ a scalable approach to building out our data centers. It depends on demand, supply, and other factors. For example if we see a surge in demand, we should be able to leverage the structure we’ve put in place to scale up and meet that demand,” says Mroué.
This will no doubt lead to a tricky balancing act for MTN and Africa Data Hub Holding which will need to meet demand while also deploying capital responsibly.
“We don’t want to rush and make big announcements. We want to build the foundation right,” Mroué added.
Proof of future
Mroué makes it clear that this project isn’t a flash in the pan for MTN. The telco was founded in Johannesburg, South Africa in 1994 at the dawn of the county’s democracy and over that time it has grown its footprint to 19 countries and it became the sixth largest telco in the world after surpassing 300 million subscribers in 2025. The company intends to apply this dedication to its data center buildout as well.
“Cloud technology is really important, but the sovereignty part is being increasingly promoted, especially in Africa. And who is the best candidate to play a role in building out sovereign infrastructure? A company that is African. An organisation that is successful in Africa. An entity with the ambition to move in the direction of AI-enabled data centers in Africa, and is able to work with partners. MTN ticks all of those boxes,” explains Mroué.
MTN’s investment in data centres goes beyond just responding to market trends. The organisation views data centres as an important part of its Ambition 2030 strategy and believes that combining its connectivity, fintech and infrastructure businesses will help meet growing demand for digital services across Africa.
“MTN’s fibre business, together with its data centre programme and the potential acquisition of tower infrastructure assets, presents a unique strategic opportunity to establish an integrated, open-access digital infrastructure platform across selected markets,“ explains Mroué.
Full-stack provider
As Mroué tells it, Africa Data Hub Holding is looking to build out infrastructure that serves the African market while also attracting international investment in multiple forms. Discussing the customers the venture hopes to attract, Mroué says hyperscalers remain a key priority, especially those looking to scale across Africa without the complexity of building and managing their own infrastructure. Equally important are enterprises and public sector institutions undergoing digital transformation, where robust digital infrastructure serves as the foundation for innovation, improved public services, greater digital inclusion, and sustainable national economic growth.
With MTN, bringing in its strong presence and robust connectivity, partnering with a platform with global experience and expertise, international players will be able to unlock growth opportunities across the continent.
Over the next 12 months Africa Data Hub Holding will start to execute on its vision. The firm will focus on moving forward with its projects in South Africa and Nigeria while also engaging with potential customers which, as mentioned, include hyperscalers and cloud providers, but will also include enterprises, and the public sector.
“Africa Data Hub Holding is a key initiative that reflects MTN’s priorities and our commitment to advancing Africa’s digital infrastructure. Through Africa Data Hub Holding, we are building a platform that can scale with demand and support the continent’s long-term digital growth,” Mroué concluded.