USTDA Backs AI-Ready Data Center Development in Nigeria

Arlington, VA – The U.S. Trade and Development Agency is advancing U.S. technological leadership in artificial intelligence (AI) and Nigeria’s digital economy by funding a feasibility study to support the development of two data centers in Nigeria. USTDA signed an agreement with African investment firm INFRAGORA Global Capital (Pty) Ltd (INFRAGORA), for a study supporting large-scale AI-ready data centers in Lagos and Delta states, representing one of the most significant proposed data center investments in Nigeria to date. The project will help ensure that Nigeria’s rapidly growing digital economy relies on secure, trusted American technology.

“As nations across Africa lay the groundwork for deploying artificial intelligence solutions, it’s critical that they do so on a foundation of trusted, secure technology,” said Thomas R. Hardy, USTDA’s Deputy Director. “This support will grow Nigeria’s digital economy while creating new opportunities for American companies to compete and win in one of the world’s fastest-growing markets.”

The USTDA-funded study will conduct technical and financial assessments for the data centers, including their capacity to support AI-ready workloads. The project will be the initial phase of INFRAGORA’s continent-wide AFRIDATA Datacenter Platform and will position U.S. firms to secure a durable, long-term foothold in Africa’s fast-growing data center market. It will also generate opportunities for American companies, including providers of AI software platforms, cloud and data storage infrastructure, advanced networking and computing hardware and cybersecurity solutions.

USTDA-funded programming is carried out by U.S. companies. The request for proposals for this feasibility study is available here: https://ustda.gov/business_opp_oversea/afridata-nigeria-data-center-feasibility-study/.  

Africa currently hosts less than two percent of global data center capacity, forcing reliance on distant servers that slow connections and increase security risks. Developing U.S.-backed data center capacity will improve digital access and reliability for local businesses and institutions, fortify critical digital infrastructure, and reduce the country’s dependence on foreign-controlled technology providers. The initiative also supports Nigeria’s ambitions to expand its digital economy and attract global cloud and AI investment, positioning the country as a regional hub for secure, high-performance computing.

Kiel Odiogo of INFRAGORA said: “AFRIDATA, a pan-African Platform, is being built across the continent to give Nigeria and the wider region the critical digital infrastructure that economic growth and productivity now depend on, so that no African country is left behind. By bringing together AI-ready data centers, cloud infrastructure, reliable power, technology innovation, and local capacity building, the platform creates a sustainable ecosystem that accelerates Nigeria’s participation in, and leadership of, the fast-growing digital economy. USTDA’s support has been catalytic. Its early commitment has helped de-risk the project and bring trusted partners to the table. We look forward to leveraging American innovation, technology, and expertise to ensure this infrastructure is secure, trusted, and built to scale, and to drive regional growth, digital integration, and job creation.”

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The U.S. Trade and Development Agency is the U.S. government’s first mover on critical infrastructure development in emerging markets, advancing the shared strategic priorities of the United States and our overseas partners while creating opportunities to deploy trusted U.S. solutions. USTDA funds the upfront technical work that accelerates the development of infrastructure projects, helping them attract the financing they need for implementation and procurement of U.S. goods and services.

MEDIA INQUIRIES: press@ustda.gov