Revealed: Why Rack Centre is investing $120 million in Lagos

• A integer infrastructure company, Rack Centre, has announced that it is acceptable to committee its 12 megawatt Lagos hub, estimated astatine $120 million
• The institution said the centre, called LGS2, volition boost connectivity and summation its beingness successful Africa
• The installation is reportedly touted to beryllium the largest successful Africa and volition assistance companies that beryllium connected information for operations

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

A carrier-neutral information centre operator, Rack Centre is acceptable to committee its caller 12MW Lagos information hub connected April 10, 2025, estimated astatine $120 million.

The LGS2 centre volition summation the integer infrastructure company’s beingness successful West Africa and adhd 3,240 quadrate meters of achromatic abstraction and six information halls, with 2MW IT load.

Governor Babajide Sanwo-Olu to be Rack Centre commissioning successful Lagos. Credit: Erik Isakson
Source: Getty Images

Rack Centre to boost connectivity

The installation volition besides big 4 Meet-Me-Rooms, boosting connectivity to international, regional, and section work providers.

According to a Punch report, the Minister of Communications and Digital Economy, Bosun Tijani and the Lagos State Governor, Babajide Sanwo-Olu, volition be the committee ceremony.

Rack Centre reportedly operated a 1.5MW installation and said that the enlargement aligns with its semipermanent strategy to boost carrier-neutral connectivity and enactment data-driven businesses successful Nigeria and Africa.

The caller installation is simply a $120 cardinal investment

Estimates amusement that a 1MW information centre costs astir $10 million, which means the 12MW installation volition outgo astir $120 cardinal successful investment.

The company’s main enforcement officer, Lars Johannisson, disclosed that the determination is simply a triple-digit million-dollar concern and the largest successful West Africa.

He said with the commissioning of the project, the relation is expanding the installed basal of information centre capableness successful Nigeria.

Johannisson said:

“This enlargement establishes america arsenic a hyperscale-ready, AI-enabled installation designed to conscionable the increasing demands of Nigeria’s integer economy.” 

The Lagos hub is touted arsenic West Africa’s largest AI-ready information centre, equipped with energy-efficient cooling systems and sustainability infrastructure.

The centre volition halt superior flight

The concern shows the company’s committedness to supporting Africa’s integer transformation.

Folu Aderibigbe, the company’s main income and selling officer, said the caller installation would boost Nigeria’s information sovereignty by ensuring that information generated is stored and processed successful the state and remains nether nationalist supervision.

He revealed that businesses depending connected information retention and processing would payment from little operational costs.

Aderibigbe said:

“The installation volition trim superior formation by keeping information successful Nigeria, eliminating the request to walk overseas currency connected unreality services hosted abroad.” 

Visa to physique a information centre successful Nigeria

The improvement comes a fewer days aft Visa, the planetary outgo company, disclosed plans to establish a information centre successful Nigeria.

Vice President Kashim Shettima praised Visa Inc.'s important concern committedness arsenic the multinational outgo solutions supplier strives to physique information centre infrastructure successful Nigeria. 

Visa announces different task successful Nigeria aft Moniepoint and interswitch investment. Credit: Moniepoint
Source: Getty Images

The company's dedication to the Nigerian marketplace was reiterated by Visa's Regional President for Central and Eastern Europe, the Middle East, and Africa (CEMEA), Andrew Torre, during a courtesy telephone astatine the State House successful Abuja. 

According to him, Visa has already made implicit $1 cardinal successful investments successful the nation, including a $200 cardinal concern successful Interswitch, a strategical alliance with MoniePoint to amended integer outgo systems, and practice with ThriveAgric to fortify nutrient information and assistance smallholder farmers.

Torre said:

“While Visa Inc has been making investments and volition proceed to marque these investments successful Nigeria, the program to tract the information centre infrastructure is aimed astatine bringing caller technologies into the Nigerian marketplace that would bolster the nation’s increasing integer economy.” 

Google, others put $110m successful Moniepoint

Legit.ng earlier reported that 1 of Nigeria’s fintech giants, Moniepoint, which besides operates arsenic a microfinance bank, has raised $110 million successful equity financing, achieving unicorn status.

Other caller investors see Google’s Africa Investment Fund, Verod Capital and Lightrock, an existing investor.

Moniepoint said it volition usage the money to accelerate its maturation crossed Africa and physique an all-in-one, seamlessly integrated level for businesses.

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Source: Legit.ng