Tuesday, 02 January 2024 12:17 GMT

MTN Accelerates AI Infrastructure Drive With $240M Nigeria Hub, Eyes Global Partners


(MENAFN- The Arabian Post)

Johannesburg – MTN Group has moved to broaden Africa's AI infrastructure by initiating plans to build a network of data centres across its 16 markets, partly self-financed and partly through collaborations with U. S. and European technology firms. CEO Ralph Mupita told Bloomberg the company aims to finalise these partnerships before year-end.

The first facility under this rollout is a $240 million, 9-megawatt data centre in Nigeria, named the Sifiso Dabengwa Data Centre. It is being built in two phases; the first phase delivers 4.5 MW capacity as a Tier III facility. MTN has also signalled that it may deploy its own hardware equipment in some centres.

These data centres will be operated by a dedicated MTN business unit, Genova. Its mandate includes leasing AI computing capacity to governments, enterprises and third parties, monetising infrastructure, and opening MTN's platforms to partners beyond typical telecom operations.

Africa currently commands under 1% of global AI data centre capacity, with a high concentration in South Africa. MTN's strategy is designed to close this gap, particularly in markets where it already has a presence and AI demand is growing.

Power supply and energy reliability are among the major challenges MTN is working to address. For centres in countries with weak electricity infrastructure, the company is exploring alternative and more stable energy sources.

Rival efforts are underway elsewhere: Microsoft and G42 are working on a geothermal-powered AI-capable data centre in Kenya, while Airtel Africa is preparing to expand its AI infrastructure in Nigeria through its Nxtra arm.

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