OADC to Invest $240 Million in Lagos Data Center Expansion

Open Access Data Centers (OADC), a subsidiary of WIOCC Group, is set to invest $240 million to expand its Lekki, Lagos data center from 1.5 megawatts (MW) to 24MW by 2027. This is part of a broader $500 million investment plan to develop data infrastructure across Africa.

Expanding Nigeria’s Digital Infrastructure

The Lagos facility, which launched operations just two months ago, will serve as a landing station for Google’s Equiano subsea cable in Nigeria. The project will be executed in two phases, with the first 12MW expected within 18 months.

Ayotunde Coker, CEO of OADC, emphasized the significance of this investment:

“One megawatt of data center capacity costs about $10 million. We are building 24MW, which is a $240 million investment, backed by international finance partners such as the International Finance Corporation and Proparco.”

Sustainability and Power Strategy

OADC’s expansion will integrate sustainability-linked financing, meaning additional funding is tied to meeting energy efficiency targets and securing EDGE green building certification.

To tackle Nigeria’s power challenges, OADC is implementing a multi-faceted energy strategy, combining traditional and renewable sources. Plans include:

• Connecting to EKDC’s dedicated transmission line, with a second link from the HR substation for redundancy.
• Exploring Independent Power Producer (IPP) solutions using gas-based energy to reduce reliance on diesel generators.
• Sourcing hydroelectric and solar power through power-wheeling options, a model already implemented in South Africa.

Future Expansion Across Africa

Beyond Nigeria, OADC is eyeing expansion in the Democratic Republic of Congo (DRC) and South Africa, driven by rising demand for cloud computing, AI workloads, and enhanced internet access.