Stakeholders highlight co-location as key solution to Africa’s digital infrastructure challenges
By Juliet Umeh
Key stakeholders in Africa’s digital infrastructure ecosystem have identified co-location services as a critical solution to the continent’s persistent challenges, including energy constraints, infrastructure gaps, and investment risks.
This formed the focus of a panel session at IoT West African event that brought together data centre operators, telecom providers, investors, and infrastructure experts to explore how co-location can accelerate Africa’s digital transformation.
Co-location, which involves hosting IT equipment in third-party data centres, is increasingly seen as a scalable and efficient alternative to on-premises infrastructure.
CEO of Nxtra by Airtel, Yashnath Issur, stressed that aligning with global standards is essential to closing Africa’s infrastructure gap and remaining competitive.
“This market is no longer local; it is a global business that requires global quality and talent,” he said, noting that Africa must build infrastructure capable of supporting rising demand for cloud and AI services.
He emphasised that collaboration across the ecosystem is key. “No single player can do it alone. We need strong interconnection and the right mix of capacity to support digital growth,” he added. CEO of Rack Centre, Lars Johannesson, identified energy as the biggest barrier to growth, particularly in Nigeria.
“Data centres are fundamentally about power, cooling and people. Energy remains the engine that will power future growth,” he said, calling for sustained investment in energy infrastructure.
Managing Director of Equinix Nigeria, Wole Abu, noted that while adoption is increasing, many organisations are yet to fully utilise co-location’s advanced capabilities such as interconnection and cloud integration.
He pointed to fintech growth, hyperscaler entry, and rising local expertise as drivers of deeper adoption, while emphasising that investment challenges are more about project bankability than capital availability.
“There is significant capital, but investors prioritise strong business cases and reliable operators,” he said.
Head of Cloud Solutions at MTN, Ifeanyi Otudoh, highlighted collaboration as a solution, noting that telecom operators are supporting enterprises through integrated platforms spanning connectivity, cloud, and co-location.
He also stressed the need for resilient infrastructure design to address power instability, including backup systems and renewable energy solutions.
Stakeholders concluded that addressing energy, policy, and infrastructure gaps through coordinated efforts will unlock the full potential of co-location as a catalyst for Africa’s digital economy growth.
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