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MTN Group has begun building its first artificial intelligence (AI) data centre in Nigeria with an estimated investment of $240 million. The Johannesburg-based telecommunications firm stated that the initiative will be the cornerstone for a broader deployment of AI-centred facilities throughout the continent.
The data centre will offer computational resources to companies, governments and organisations. It aims to use AI-driven solutions, simultaneously aiding MTN’s strategy to explore new revenue opportunities.
Chief Executive Officer Ralph Mupita stated that the initiative demonstrates MTN’s dedication to establishing Africa as a competitive participant in the global AI landscape. He mentioned that the company is engaged in commercial discussions with possible international partners to expand the project and create similar facilities in other markets where MTN operates.
Boasting over 40 million subscribers in Nigeria, MTN considers the country’s domestic market a vital centre for AI integration.
Image credit: MTN Group Archives
MTN Genova: An Initiative for Infrastructural Development
The site in Nigeria is a segment of MTN’s broader broadband strategy under the new MTN Genova initiative. Project Genova aims to monetise infrastructure, increase third-party access, and foster innovation.
Africa accounts for under one per cent of the world’s AI data centre capacity, underscoring the continent’s infrastructure deficit. MTN plans to establish its first AI data centre in Nigeria to enhance local computing capabilities. This is essential to decrease dependence on overseas data centres, which typically raise costs and risks privacy. Industry experts describe the $240 million planned investment as a demonstration of MTN Group’s enormous confidence in Nigeria’s digital economy.
Image credit: The Financial Results Archives
The funding is expected to stimulate expansion in cloud services. MTN Group is gunning to drive AI solutions, and digital transformation in finance, healthcare, and manufacturing industries.
Mupita mentioned that MTN is developing plans to ensure a stable electricity supply for the facility, considering Nigeria’s ongoing power infrastructure issues. Guaranteeing stable and economical energy will be vital for the centre’s efficiency.
Global tech giants and master hyperscalers like Microsoft, Amazon, and Alibaba already provide Cloud services in Africa. Nevertheless, MTN’s venture into the AI data centre arena establishes it as an indispensable rival. The firm is demonstrating capacity to customise solutions for local demands.
The Nigeria initiative aims to drive additional growth in MTN’s 16 African markets. The firm is reinforcing its goal of becoming a leader in the continent’s evolving AI sector.
