Microsoft has ruled out plans to build a data centre in Nigeria in the near term, saying its current strategy is focused on cloud connectivity, partnerships, and enabling local organizations to access its global infrastructure rather than hosting data locally.
The clarification was given by Abideen Yusuf, General Manager of Microsoft Nigeria and Ghana, during a press conference in Lagos, amid growing conversations around Nigeria’s need for stronger local digital infrastructure. As government services increasingly move online and sectors such as fintech, e-commerce, healthcare, and artificial intelligence continue to expand, industry stakeholders have argued that local hyperscale data centres could help reduce latency, strengthen data sovereignty, and improve system resilience.
Yusuf acknowledged these expectations, noting that it is natural for countries to want local data centre investments as part of their digital transformation agenda. However, he explained that Microsoft’s current priorities in Nigeria lie elsewhere.
“There is always an appetite for every country to want to have data centres,” Yusuf said. “There are ongoing conversations, and I know the government is trying to collaborate with different partners within the ecosystem.”
Despite this, he stressed that Microsoft is not actively pursuing a local data centre build in Nigeria at this time. Instead, the company is focused on ensuring Nigerian businesses can reliably access Microsoft Azure and other cloud services through enhanced connectivity solutions.
“From a Microsoft standpoint, our current focus is on the infrastructure we are providing, particularly through services like ExpressRoute,” Yusuf explained. “This helps organizations by providing a dedicated link from their data centres directly to Microsoft Azure, across the regions they choose to operate in. That is where our focus is today.”
ExpressRoute allows enterprises to connect directly to Microsoft’s global cloud infrastructure without relying on the public internet, offering improved performance, security, and reliability. According to Yusuf, this approach currently addresses the most pressing needs of Nigerian organisations adopting cloud services.
When asked directly whether Microsoft was holding discussions about establishing a data centre in Nigeria, Yusuf declined to confirm any such plans, saying the company does not comment publicly on internal or exploratory conversations.
“Those are not conversations we are able to discuss,” he said. “Conversations may be ongoing, but they are not something we publicly comment on.”
Microsoft’s position comes at a time when Nigeria’s data centre market is expanding rapidly. Installed capacity is projected to grow from about 56.1 megawatts in 2025 to over 218 megawatts by 2030, driven by rising demand from cloud providers, fintech companies, and the broader digital economy. The country currently hosts around 17 active data centres, with major expansion projects underway from operators such as Equinix and Airtel’s Nxtra Data Centre unit.
Looking ahead to 2026, Yusuf said Nigeria remains strategically important to Microsoft, but within a broader regional framework rather than as a standalone infrastructure hub.
“Nigeria is part of a multi-cluster region for us,” he said. “Within that context, we are focused on three key priorities: continued engagement and partnership with the government, helping organisations and large enterprises achieve their business outcomes, and developing our partner ecosystem.”
“These are the core areas we are focusing on as we move into the 2026 calendar year,” he added.
Microsoft already operates data centres on the continent, having launched cloud regions in Johannesburg and Cape Town in 2019. For now, however, the company appears set to continue serving Nigeria through regional infrastructure and connectivity solutions, even as local demand for data localization and hyperscale facilities continues to grow.
