Key points
- Leo Stan Ekeh says stable electricity is critical to Nigeria’s ambition of becoming a hub for AI data centres and local data hosting.
- He says inadequate power, outdated infrastructure and shortage of skilled professionals remain major obstacles.
- Ekeh warns that conventional data centres are becoming obsolete as AI reshapes digital infrastructure.
- He also calls for stronger implementation of government policies and a credible digital population census.
Main story
The Chairman of Zinox Group, Leo Stan Ekeh, has said reliable electricity remains the biggest requirement for Nigeria to realise its ambition of becoming a regional hub for local data hosting and Artificial Intelligence (AI) data centres.
Ekeh spoke during an online media engagement with journalists on Sunday while commenting on recent government efforts to strengthen Nigeria’s digital infrastructure.
He described the Federal Government’s drive to encourage local data hosting and indigenous data centres as a forward-looking policy but said its success would depend largely on addressing critical infrastructure deficits.
“It is a good policy. It is futuristic, but government must do its own part. Without reliable power, it will be difficult to achieve,” he said.
According to Ekeh, modern data centres require uninterrupted electricity to guarantee reliable services, making stable power supply indispensable to operators.
He noted that many operators currently supplement grid electricity with alternative energy sources, a situation he said significantly increases operating costs and discourages large-scale investment.
While acknowledging the growing adoption of solar energy, Ekeh said renewable energy alone could not adequately power large digital infrastructure projects.
“Solar is not a total solution. It is an intervention. The national grid remains the real solution,” he said.
He also warned businesses against investing in substandard solar equipment, saying poor-quality installations often fail prematurely and increase operating costs.
Beyond electricity, Ekeh said Nigeria still lacked the infrastructure required to compete in the rapidly evolving AI economy.
He explained that many existing data centres were designed before the emergence of AI technologies and would require significant upgrades to meet current computing requirements.
“We have moved to AI data centres. If you invest in a conventional data centre today, you are already investing in outdated technology,” he said.
Ekeh identified the shortage of skilled technology professionals as another major obstacle, arguing that many universities still lack reliable electricity, modern computer laboratories and qualified lecturers needed to train graduates for the digital economy.
He also expressed concern over the continued migration of highly skilled Nigerian technology professionals to countries such as the United Kingdom and the United States in search of better opportunities.
“How much can you pay a technology expert here when the person can earn much more in the United Kingdom or the United States?” he asked.
The technology entrepreneur stressed that confidence in local data hosting would also depend on strong data protection, trust and institutional integrity.
While commending the Governor of the Central Bank of Nigeria (CBN) for promoting local technology development, Ekeh said the effectiveness of the policy would ultimately depend on implementation.
“I respect the CBN governor. He means well and is putting many things in place, but implementation is another matter,” he said.
He also advocated a credible digital population census, saying accurate demographic data would improve national planning and guide future investments in Nigeria’s digital economy.
“A digital census will tell us how many Nigerians will attain the age of 18 next year or in the years ahead. That is the kind of data needed for effective planning,” he said.
The issues
The Federal Government is pushing to strengthen Nigeria’s digital economy by encouraging local data hosting and expanding domestic data centre capacity. The move gained momentum following the Central Bank of Nigeria’s directive requiring banks, fintechs and other payment service providers to store payment transaction data generated in Nigeria on local servers from Jan. 1, 2027. Industry experts, however, say achieving the objective will require significant investment in electricity, digital infrastructure and human capital.
What’s being said
“Without reliable power, it will be difficult to achieve.” — Leo Stan Ekeh
“We have moved to AI data centres. If you invest in a conventional data centre today, you are already investing in outdated technology.” — Leo Stan Ekeh
What’s next
The CBN’s data localisation directive is expected to take effect from Jan. 1, 2027, while stakeholders will be watching government efforts to improve electricity supply and digital infrastructure needed to support increased local data hosting.
Bottom line
Ekeh says Nigeria’s ambition to become a leading destination for AI data centres and local data hosting will depend less on policy announcements and more on solving persistent challenges in electricity supply, infrastructure development and skilled manpower.
