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Rack Centre to launch $120 Million AI-ready data center in Lagos.

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Rack Centre, West Africa’s leading carrier- and cloud-neutral data center operator, will tomorrow commission its newest facility – LGS2 – in Lagos. The 12-megawatt hyperscale data center is built to meet soaring demand for digital infrastructure in Nigeria and is engineered for energy efficiency, sustainability, and next-generation workloads.

“This is a multi-million-dollar investment intentionally designed to be energy efficient, with the lowest power usage effectiveness (PUE) in the region,” said Lars Johannisson, CEO of Rack Centre, at a pre-launch briefing. “We’ve integrated a sustainable energy mix – primarily gas, with diesel backup and upcoming solar – making LGS2 the most energy-sustainable data center in West Africa.”

The facility is both AI- and cloud-ready, providing scalable capacity for enterprises, cloud providers, and hyperscalers. Its design includes built-in resilience and redundancy to ensure uptime and business continuity, even as computational demands evolve.

Johannisson emphasized Nigeria’s appeal for data center investment, citing growing internet penetration and a rapidly maturing digital economy. “There is massive growth potential here. The level of infrastructure investment we’re seeing confirms that Nigeria is ready for this scale of capacity,” he said.

Ezekiel Egboye, Rack Centre’s Chief Operating Officer, noted that LGS2 was engineered to support emerging AI workloads and align with Rack Centre’s long-term ESG goals. “This is not just about today’s needs – it’s about building a future-proof, energy-efficient platform that can support the digital economy at scale,” he said.

Obinna Isiadinso, Global Sector Lead for Data Centers at the International Finance Corporation, described LGS2 as a transformative development in Nigeria’s digital landscape.

“Until now, Nigeria’s digital economy has relied on limited infrastructure – small colocation facilities, fragmented connectivity, and inconsistent power,” Isiadinso said. “LGS2 changes the equation. It brings global-grade capacity to a market with massive demand but few local options.”

He highlighted several differentiators: direct interconnection to five subsea cables including Equiano and 2Africa; four Meet-Me-Rooms for rich, carrier-neutral connectivity; a hybrid power system combining gas turbines, diesel, and solar; and the hosting of Nigeria’s Internet Exchange Point (IXPN) to enhance local traffic performance.

“This is more than a data center – it’s the digital infrastructure foundation Nigeria needs for its next phase of growth,” he added.

The launch of LGS2 marks a significant scale-up from Rack Centre’s previous 1.5MW facility and aligns with its strategy to strengthen Nigeria’s position as a regional digital hub. The company said this expansion effectively doubles Nigeria’s live data data center footprint.

“This is a triple-digit million-dollar investment – the largest of its kind in West Africa – and it’s just the beginning,” Johannisson said.

Government dignitaries expected at the commissioning event include Minister of Communications and Digital Economy Bosun Tijani and Lagos State Governor Babajide Sanwo-Olu.

Rack Centre is backed by institutional investors including Actis. Its latest expansion comes amid surging global interest in Africa’s digital infrastructure market.