According to insights from Ikechukwu Nnamani, the CEO of Digital Realty Nigeria, Nigeria lacks data centre capabilities, having access to only about 5% of the megawatts needed to sustain its digital economy. Despite its rapid growth in Technology adoption, the country currently possesses about 30 megawatts of data centre capacity. Moreover, a minimum of 600 megawatts is essential to fulfil the needs of its citizens, economic size, and digital objectives. During a visit to Lagos, the Executive Committee of the Nigeria Information Technology Reporters’ Association (NITRA) underscored this issue, with Nnamani emphasising the extent of the country’s deficiency.
Also, despite advancements in setting up data centres, their total remains inadequate to support a robust digital economy. The current Infrastructure is inadequate to support the Information Technology (IT) demands for the nation’s Economy to thrive in a growing digital world. Nnamani emphasised that compared to other parts of the world, the region lacks active data centres. For instance, Toronto has more than 30 centres, illustrating the significant infrastructure that remains to be developed in the country. Capacity issues are one aspect of the situation, as the nation also struggles with distribution issues.
Lagos leads in digital advancement, surpassing all other states.
Furthermore, most advancements occur in Lagos, while many other regions are still underdeveloped. Advocating for innovative leadership within the data centre industry is essential to draw in Investment and build the required infrastructure. To advance the country, the government should promote investment avenues and design regulations that prioritise growth opportunities rather than just Revenue collection from the sector. The necessity of interconnected infrastructure throughout urban areas was highlighted, as it plays a crucial role in promoting national Economic Development and enhancing the quality of life for citizens.
The challenge in reaching this ambitious infrastructure goal is the nation’s persistent foreign exchange crisis, which heavily affects the data centre sector. Many operators struggle with the economic repercussions of currency Devaluation and fluctuating exchange rates, hindering their ability to see returns on the investments already incurred. As this instability persists, attracting new funding becomes increasingly challenging, with Investors remaining cautious due to the growing economic uncertainty. In addition to these challenges, there is also the question of how emerging technologies, particularly Artificial Intelligence (AI), will play a role in the country’s future.
Expert emphasised on ethical artificial intelligence regulation.
Nnamani emphasised the need for the government to establish an ethical framework to guide AI’s development and avoid its misuse. This issue extends beyond national borders, affecting the entire world as several nations struggle to manage the progress of AI technology alongside the risks of unforeseen outcomes. While there are innovators focused on creating ethical AI solutions, many developers focus solely on the financial benefits, often overlooking the broader societal implications. In countries like the United States, discussions are underway to develop policies and guidelines to ensure the responsible use of AI.
Moreover, the country, still in the early stages of AI adoption, can learn from these efforts and implement its regulations before the technology becomes well-established. While many worry that AI might result in unemployment, Nnamani is confident that AI will enhance employees’ skills if managed appropriately. This technology is expected to change the labour market, necessitating the acquisition of new skills to effectively use and gain advantages from AI-based innovations. The focus is on embracing and discovering ways to collaborate with AI, enhance productivity, and cut expenses instead of worrying about being replaced by the technology.
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Lastly, the nation stands at a pivotal moment, needing to advance its digital and technological systems to align with its goals. To enable the growth of the digital economy, considerable funding for data facilities, supportive regulations, and a calculated strategy for new technologies such as AI is vital. As the country seeks to establish itself as a leader in the African digital economy, the government’s responsibility to cultivate a setting that promotes both development and ethical advancement is at an all-time high.