Nigeria’s Digital Economy Faces Challenges in AI and Data Center Development, Says Digital Realty CEO

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 Engr. Ikechukwu Nnamani, CEO of Digital Realty Nigeria, has called for a stronger focus on ethical Artificial Intelligence (AI) and the expansion of Data Centers to support Nigeria’s digital economy. His remarks were made during a recent visit by the Executive Committee of the Nigeria Information Technology Reporters’ Association (NITRA), following their ICT Growth Conference themed “Impact of AI On National Development: Prospects, Policies, and Challenges in Nigeria.”

Nnamani emphasized that while the development of ethical AI solutions is critical, there is a troubling disparity compared to those creating non-ethical solutions. “Ethical AI developers are outnumbered by those focused solely on profit, often at the expense of ethical considerations,” he said. He pointed out that this trend is not unique to Nigeria but is a global issue, with many developed countries, including the U.S., actively working on AI regulation to ensure safety and best practices.

“In the U.S., significant efforts are underway both in Congress and the Executive branch to address AI safety. Governments are striving to balance AI’s value with potential risks, and Nigeria needs to do the same,” Nnamani added.

Regarding Nigeria’s regulatory landscape, Nnamani acknowledged that while progress is being made, there is still work to be done. “AI adoption in Nigeria is still in its early stages, providing us with a chance to address potential issues before they escalate. Our regulators are making strides, but ongoing vigilance is necessary to ensure ethical use of AI.”

Nnamani also addressed concerns about AI-related job losses, arguing that AI will actually drive the need for up-skilling rather than eliminating jobs. “AI should be seen as a tool for enhancing efficiency and productivity. The real challenge is ensuring people are re-trained to effectively utilize AI technologies.”

On the topic of Data Centers, Nnamani noted that while there has been an increase in their numbers in recent years, Nigeria still lacks adequate infrastructure to meet the demands of its burgeoning digital economy. “Current Data Center capacity is around 30 megawatts, but we need at least 600 megawatts based on our economic and population size,” he explained, contrasting this with cities like Toronto, which has over 30 Data Centers.

He stressed the need for greater investment and infrastructure development in the Data Center sector. “To build a truly digital economy, we need foresight and significant investment. Government support is crucial, not just for regulatory purposes but to foster industry growth.”

Nnamani highlighted that while Lagos is advancing in infrastructure development, other states are lagging behind, impacting the overall digital ecosystem. “Much work remains, especially in extending infrastructure beyond Lagos and improving cross-city services.”

He also identified power supply and foreign exchange (FOREX) issues as major obstacles for Data Center operations in Nigeria. “Challenges such as unstable FOREX and unreliable power supply are significant barriers to business operations,” he concluded.

The NITRA ICT Growth Conference gathered key industry stakeholders to explore the future of AI and its impact on Nigeria’s development, underscoring the need for both ethical AI practices and robust infrastructure to drive the country’s digital transformation.


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