MTN Group is accelerating plans to develop large-scale AI-enabled data centres across Africa, with its first flagship facilities set to be located in Nigeria and South Africa.

The initiative forms a central part of the company’s Ambition 2030 strategy, which aims to reposition MTN from a traditional telecom operator into a full-scale digital platform and infrastructure provider.

Following a market study completed in early 2025, MTN has secured key partners to finance and operate the data centres, signalling a shift from strategy to execution.

Africa’s Data Centre Demand Is Surging

MTN’s investment reflects a broader surge in demand for digital infrastructure across the continent.

As cloud computing, artificial intelligence, and data-driven services expand rapidly, the need for local data storage and processing capacity is rising. Industry projections suggest Africa’s data centre market could surpass $7 billion by 2030, fuelled by growth in:

  • Streaming platforms
  • Fintech services
  • E-commerce
  • AI-powered applications

Despite this momentum, Africa currently accounts for less than 1 percent of global data centre capacity, leaving many businesses dependent on infrastructure located in Europe and the Middle East.

Solving Africa’s Data Localisation Challenge

For MTN, building domestic data centres addresses one of the most pressing challenges in Africa’s digital economy: where data is stored and processed.

Hosting data closer to users offers several advantages:

  • Lower latency and faster response times
  • Improved service reliability

Compliance with emerging data sovereignty regulations

By localising infrastructure, MTN aims to strengthen the foundation for digital services while reducing reliance on foreign data centres.

The rollout will be driven by Bayobab, MTN’s infrastructure-focused subsidiary responsible for fibre networks, data centres, and international connectivity.

Bayobab is already emerging as a key growth engine for the group. In the 2025 financial year, the unit generated R5.6 billion in external revenue, while its fibre business recorded over 41 percent year-on-year growth.

This performance highlights increasing demand for high-capacity connectivity from enterprises, telecom operators, and cloud providers expanding across Africa.

Why Nigeria and South Africa Come First

MTN’s decision to prioritise Nigeria and South Africa is rooted in both scale and market maturity.

South Africa remains the continent’s most advanced technology ecosystem, with strong enterprise adoption of cloud and digital services.

Nigeria, on the other hand, combines population scale with rapid digital growth, particularly in fintech, media, and online platforms.

By establishing AI-ready data centres in these two markets, MTN can serve not only domestic demand but also extend capacity to neighbouring regions across West and southern Africa.


Expanding Control Over Digital Infrastructure

The data centre push is happening alongside a broader infrastructure strategy.

Earlier in 2026, MTN proposed acquiring a larger stake in IHS Towers’ African operations, a move that would deepen its control over telecommunication tower infrastructure.

Increasing ownership across towers, fibre, and data centres positions MTN to operate a fully integrated digital infrastructure stack. This could enable the company to:

  • Lower long-term operating costs
  • Enhance network performance

Unlock new revenue streams by leasing infrastructure

If completed, the move would significantly strengthen MTN’s competitive advantage across the continent.

Competition Intensifies in Africa’s Infrastructure Race

MTN’s expansion comes amid a broader race to build digital infrastructure in Africa.

Global and regional players are rapidly scaling their presence, including:

  • Microsoft and Amazon Web Services launching cloud regions in South Africa
  • Equinix and Africa Data Centres expanding facilities across key markets
  • Increased investment in subsea cables and fibre networks linking African economies

Even with these developments, the continent’s infrastructure capacity still lags far behind global benchmarks, creating significant room for growth.

AI Workloads Are Driving the Next Wave

What sets MTN’s strategy apart is its focus on AI-ready infrastructure.

Artificial intelligence workloads require significantly more computing power than traditional cloud services. Running and training AI models demands:

  • High-performance GPUs
  • Advanced cooling systems
  • Large-scale, stable power supply

As African businesses begin to adopt AI across sectors such as finance, customer service, and analytics, demand for local processing capacity is expected to rise sharply.

Without adequate domestic infrastructure, companies risk relying on overseas data centers, which will lead to higher costs, slower performance, and regulatory challenges.

Positioning for Africa’s Digital Future

MTN’s move into AI-enabled data centres signals a long-term bet on Africa’s digital economy.

By investing in critical infrastructure across its largest markets, the company is positioning itself at the centre of the continent’s next growth phase, where connectivity alone is no longer enough, and value is increasingly created through data, platforms, and intelligent systems.