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Firm unveils first phase of 100MW data centre

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Kasi Cloud has commissioned the first phase of its planned 100-megawatt AI-ready hyperscale data centre campus in Lekki, Lagos, marking one of Nigeria’s most ambitious investments yet in digital infrastructure and local compute capacity.

The company said the facility is designed to support artificial intelligence workloads, cloud computing, enterprise storage and high-density digital services at a time when global demand for AI infrastructure is accelerating rapidly.

The project, estimated to cost about $250m, broke ground in April 2022, while major construction work began in the second quarter of 2023. The commissioning marks the first operational deployment within the broader campus, which Kasi Cloud plans to scale over time into a 100MW data infrastructure ecosystem.

Nigeria currently has about 17 operational data centres, according to industry estimates, with most facilities operating below 25MW capacity. Kasi Cloud said the Lekki campus is intended to significantly expand the country’s compute footprint and reduce dependence on foreign-hosted infrastructure.

Founder and Chief Executive Officer Johnson Agogbua said the project is intended to help reverse Africa’s dependence on foreign digital infrastructure by creating local capacity capable of supporting the next generation of AI-driven applications.

“What we’re most proud of is the role that our people and our team have played,” Agogbua said during a media briefing at the facility in Lagos on Saturday. “Almost every other data centre built here was designed by others for us. Kasi is Nigeria proper. Africa proper.”

The company said the first deployment includes a 5.5-megawatt data hall and a 7.5-megawatt ecosystem floor designed to accommodate local and international businesses requiring colocation, cloud hosting, storage and networking services.

According to Agogbua, the ecosystem floor is intended to allow customers to lease infrastructure ranging from a single server node to an entire aisle of racks, depending on operational requirements.

“It’s an opportunity for our international partners, local partners and local businesses to take up anything between a single node and a rack to a full aisle of IT workloads,” he said.

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Global Director, Marketing and Sales Operations at Kasi Cloud, Ngozika Agogbua, said the project sits at the intersection of technology, economics and geopolitics at a time Africa is increasingly seeking greater control over its digital future.

“Africa has become one of the fastest-growing digital markets in the world,” she said during a press conference in Lagos on Saturday. Yet when it comes to artificial intelligence, the continent still operates with less than one per cent of global compute capacity, relying almost entirely on infrastructure located outside its borders.”

According to her, the dependence on overseas infrastructure means African businesses continue exporting critical data and economic value whenever they run AI workloads.

“Every time an African business runs an AI workload, the data travels to a server in Europe or America,” she said. “The economic and strategic cost of that dependency is enormous and largely invisible.”

Agogbua described the Lagos campus as part of what could become a structural shift in Africa’s digital economy, comparing the moment to the expansion of subsea cable systems and mobile telecommunications networks that transformed connectivity across the continent over the past two decades.

“We believe this is less a company launch and more a structural turning point,” she said.

The company argued that large-scale local compute infrastructure is becoming increasingly important as governments, financial institutions, startups and enterprises across Africa accelerate adoption of AI-enabled systems and cloud-based services.

The company said the facility is also being designed to support certain GPU-intensive workloads required for AI computing while providing a carrier-neutral interconnection hub linking telecommunications operators and international submarine cable providers.

Agogbua said the upper floors of the campus are specifically designed for wholesale and hyperscale cloud providers such as Amazon Web Services, Google and Microsoft seeking expansion capacity in West Africa.

“Players like AWS, Google and Microsoft find it difficult to enter new markets and build at scale,” he said. “We have both the power and the space they need to expand.”

The company disclosed that the campus has a dedicated 132-kilovolt substation capable of scaling deployments to approximately 100 megawatts of IT load, positioning it among the largest planned AI-ready compute facilities in the region.

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Agogbua repeatedly emphasised the distinction between total power infrastructure and “critical load”, the electricity directly delivered to computing systems, storage infrastructure and networking equipment.

“When we say critical load, we mean the things that go to computers, routers and storage devices,” he said.

According to him, each floor of the facility is capable of supporting approximately eight megawatts of critical load, while a single building on the campus could ultimately scale to more than 30 megawatts.

“That’s bigger than power delivered to some small cities in Nigeria,” he said.

He argued that Nigeria’s ability to compete in the digital economy will increasingly depend on whether the country can develop infrastructure capable of supporting AI systems locally.

“If we’re going to really embrace digital and employ AI-related systems to leapfrog into modernity, we need facilities of this scale,” he said.

Agogbua said Nigeria missed earlier phases of industrialisation but could still leapfrog economically through rapid adoption of modern digital infrastructure and AI technologies.

“We can digitise early, apply modern tech and leapfrog into it,” he said. “It requires facilities of this scale. It requires deployment of this scale.”

He also urged policymakers to create conditions that encourage international technology companies to establish local operations while ensuring Nigerian talent participates directly in the ecosystem.

“Make it easy for them to enter,” he said. “But require them to have us working on it. That’s how we get training.”

A major theme throughout the briefing was data sovereignty and concerns that Africa risks remaining dependent on foreign-owned AI systems if local compute infrastructure is not developed.

Agogbua argued that African languages, culture, commerce and historical records may become under-represented in future AI models if the continent does not build domestic infrastructure and local AI ecosystems.

“Will the brain that will run the future be on our soil?” he asked. “Or are we going to be renting it?”

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He said AI systems shaping future digital experiences should increasingly be developed and operated within African cities rather than entirely from technology hubs in North America, Europe or Asia.

“If those coding the model reside in San Francisco, Munich or Shanghai and documenting our language and culture, we’ll be lost,” he said. “They should be in Yaba, Abuja, Enugu, Kano, and all of our cities.”

The company also emphasised local engineering participation in the project, describing Kasi as an African-led infrastructure initiative rather than a foreign-built deployment.

Agogbua said the company established an internal training initiative known as Kasi Academy to develop local engineering talent capable of supporting advanced digital infrastructure projects.

“When people asked how we would replicate world-class execution, we said we would grow them,” he said.

According to him, many of the engineers working on the project were trained internally through the academy, with Nigerian teams directly involved in designing and deploying key systems across the facility.

“The final design, the final rendering, is done here,” he said.

While acknowledging that some equipment and specialised manufacturing capabilities still need to be sourced internationally, he maintained that Africa already possesses the technical talent needed to build sophisticated infrastructure locally.

Beyond enterprise cloud infrastructure, Agogbua linked AI deployment to broader economic transformation across Nigeria’s informal economy, including retail markets, healthcare delivery, logistics and inventory management.

“Go to the market and watch what’s going on,” he said. “Their ledger is on worn-out paper. Their inventory is in their brain. All those are opportunities.”

According to him, AI-enabled systems supported by local infrastructure could help small businesses automate inventory management, improve forecasting and strengthen supply chains.

“That’s the opportunity for our boys and girls,” he said. “But infrastructure for it must be accessible to them.”

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Read how Nigerians tap savings, loans to buy Dangote refinery shares

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Some Nigerians seeking to invest in the Dangote Petroleum Refinery and Petrochemicals FZE Initial Public Offering have turned to personal savings, loans and proceeds from the sale of assets to raise funds to buy shares, Saturday PUNCH has learnt.

Findings by our correspondents revealed strong interest in the shares among prospective retail investors, some of whom said they expected the investment to yield substantial returns in the future.

While some respondents said they were dipping into savings or raising funds through other means, others said the prevailing economic hardship had made it difficult for them to participate in the offer.

The refinery opened its IPO on Monday, September 14, giving Nigerians an opportunity to own equity in the company.

The offer comprises 4.1 billion ordinary shares priced at N525 each, with the company targeting about N2.15tn to part-fund an expansion that would nearly double the refinery’s capacity to 1.4 million barrels per day.

The minimum subscription is 10 shares, costing N5,250.

Dangote Group Chief Executive Officer, Aliko Dangote, said the low entry threshold was deliberately set to allow ordinary workers, including drivers, cooks and domestic staff, to become shareholders, describing the offer as “the IPO for the people.”

The offer is expected to close on October 13.

Investors turn to savings, loans

A staff member of the Federal Ministry of Works, David Adelabu, described the shares as expensive for struggling civil servants but said he considered the offer an opportunity to become a shareholder in the refinery.

He said, “I have small shares in some companies, including Glo and MTN, but Dangote’s shares will be the highest I will be buying. It is on the high side, but I feel this is an opportunity to become a shareholder in Dangote.

“I understand that the dividends are not going to be immediate, but I don’t mind even if it will entail selling a plot of land I have in Metumbi here in Minna. I will gladly do so.”

A trader in Dutse, Jigawa State, Adamu Bala, said he planned to use savings from his business to buy the shares.

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“I will not sell my house. I will use a small profit from my shop to buy,” he said.

Similarly, a civil servant, Fatima Mannir, said women in her group had started raising money through contributions, known as adashe, to participate in the offer.

“We have started raising money through adashe,” she said.

A trader in Damaturu, Yobe State, Malam Musa Ibrahim, said he invested part of his business savings after learning about the offer.

“I am using part of the money I have saved from my business.

“I believe that if I can invest a small amount now, it may become useful to me in the future. But I am also being careful because business is not easy at the moment,” he said.

Another resident, Aisha Mohammed, said she raised money by cutting down on some household expenses.

“I did not borrow money to buy the shares. I have been saving little by little, and when I heard about the offer, I decided to use part of what I had saved,” she said.

A businessman, Abdullahi Yusuf, however, said he obtained financial assistance from a friend to increase his subscription.

“I wanted to buy more shares than what my savings could afford, so I discussed it with a friend who agreed to lend me some money.

“I know that borrowing money to invest carries risks, but I am hoping that the investment will perform well. I will repay the money from my business income,” he said.

A petty trader, Hauwa Lawan, said she sold some personal belongings she no longer used and added the proceeds to her savings to finance her purchase.

“I sold some things that I was no longer using and added the money to my savings,” she said.

A farmer, Mallam Abdullahi Adamu, said he sold farm produce to raise about N500,000 to invest in the shares.

In Kano State, an investor, Abdulmalik Ibrahim, said he bought 10 shares for N5,250 using personal funds.

Hardship keeps some investors away

While some Nigerians are finding ways to participate in the IPO, others said economic pressures had put the investment beyond their reach.

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A civil servant in Kogi State, Saliu Joseph, said he would have loved to invest but had just paid his children’s school fees.

“Right now, I don’t think I can afford to participate unless a miracle happens,” he said.

A retired permanent secretary in the state, Bola Boro, also said he would not participate because he could not afford the investment at the moment.

“As a retired civil servant, I cannot afford such an amount to invest in the offer. Even though I am a fan of investment through the stock market, which I have been doing for years, I don’t think it will be convenient for me to participate considering the time frame of just one month,” he said.

A civil servant, Kuta Abdulahi, said the financial demands of his children’s education had left him unable to participate in the share offer.

“I must tell you the truth, I know about the Dangote Refinery shares, but I cannot even think of it at this time. My children are just resuming a new term in school. Where will I get the money for their school fees before thinking of buying shares? Please, I have a lot on my head,” he said.

Similarly, a vulcaniser, Ahmed Alkali, said his income was barely enough to meet his family’s basic needs, making investment in shares difficult.

“With the kind of job I do, I am working from hand to mouth. So, how can I buy shares when I have not eaten?” he asked.

Experts warn against borrowing

Investment experts, however, cautioned Nigerians against taking loans, selling properties or committing all their savings to the IPO, warning that equity investments carry risks.

Speaking with Saturday PUNCH, the Group Managing Director of Lancelot Group, Adebayo Adeleke, urged prospective investors to understand the risks associated with the capital market before committing their funds to the IPO.

Adeleke, who is also a former Secretary of the Independent Shareholders Association of Nigeria, said capital market investments should be made with funds that investors could afford to leave untouched for the long term, noting that equities were unsuitable for people struggling to meet immediate financial needs.

He said, “When you buy shares, you are buying a portion of the ownership of the business. Investment takes a lot of time to pass through gestation, to stability, to profitability. And you cannot, with any degree of certainty, predict when the company is going to turn the corner and begin to produce profits.

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“So, investment money is not the money you are likely to need in the next two months, three months, six months, even one year. If you cannot part with your money for a minimum of three to five years, the capital market is not the place to invest.”

Adeleke, however, described the IPO as a strategic investment, citing the refinery’s scale and demand for its products.

Also speaking, the Head of Financial Institutions Ratings at Agusto & Co., Ayokunle Olubunmi, urged Nigerians to consider the risks associated with the investment and avoid committing all their savings to the offer.

He said, “There are plenty of risks to this business. It’s not risk-free. Things can get worse for the business. Valuation is based on expectations of what will happen in the future. Things might not go as planned. And, like we all know, equity is a risky business.”

Olubunmi particularly cautioned prospective investors against selling property or using up all their savings to invest in the offer.

He advised them to invest only a portion of their funds and diversify their portfolios.

The expert also advised those considering taking loans to buy the shares to have a separate and reliable repayment plan rather than depending on returns from the investment.

The Emir of Kano, Muhammadu Sanusi II, had earlier warned prospective investors against using their children’s school fees or selling their homes to invest in the shares.

Sanusi, who gave the warning on Thursday while speaking at the company’s roadshow in Kano, urged prospective investors to invest only money they could afford to set aside for some time, suggesting amounts such as N10,000, N20,000 or N30,000.

Source: punchng.com

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ARE NIGERIANS BUILDING CHINA’S ECONOMY WHILE NEGLECTING THEIR OWN?

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While other nations are busy producing, manufacturing and exporting, Nigeria must ask itself a difficult question: Are we building our own economy, or simply creating a bigger market for other countries?

Nigeria has a huge population, abundant natural resources and a massive consumer market. Yet the country continues to depend heavily on imported finished products—from electronics and clothing to machinery, household goods and other consumer items.

The issue is not simply about Chinese businesses or businesses from any other foreign country operating in Nigeria. Foreign investment can bring capital, technology, jobs and expertise.

The bigger issue is whether **Nigerian businesses are being given the opportunity and support to manufacture competitively at home.

Instead of remaining primarily a consumer of finished products, Nigeria needs to strengthen its manufacturing sector and move further up the value chain.

Nigeria needs to produce, not just consume.

A stronger manufacturing economy could help Nigeria:

* Create more jobs for Nigerians
* Add value to locally available raw materials
* Develop industrial skills and technology
* Reduce excessive dependence on imported finished goods
* Build competitive Nigerian companies
* Increase the country’s ability to export

The goal should not be to drive legitimate foreign businesses out of Nigeria. The goal should be to build an economy where **Nigerian manufacturers can compete, grow and eventually take Nigerian-made products to markets around the world.

The question Nigerians should be asking is simple:

**Why should Nigeria remain one of the world’s biggest markets for finished products when we have the potential to manufacture many of them ourselves?

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🇳🇬 **Nigeria must move from being predominantly a consumer nation to becoming a stronger producer, manufacturer and exporter.

What do you think?

Which products should Nigeria prioritize for local manufacturing instead of relying heavily on imports?

Share your thoughts in the comments.

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ICRC defends toll pricing on highways

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The Infrastructure Concession Regulatory Commission has defended the toll pricing structure under the Highway Development and Management Initiative, saying charges are evaluated against the quality and benefits of the upgraded roads.

In a statement made available to PUNCH Online on Thursday, the Director-General, Dr. Jobson Ewalefoh, cited the 227-kilometre Akwanga–Makurdi road corridor as an example.

He said the route has four toll gates, and motorists pay as they travel along it.

He argued that toll payments should be viewed against the previous costs imposed by the poor condition of the road, including lost man-hours, vehicle damage and accident risks.

Feedback from road users, he said, shows many motorists are willing to pay tolls where they see clear improvements in road quality.

Some drivers have expressed support for similar arrangements on other major corridors if the roads are upgraded to the same standard.

“That, to me, is the beauty of a well-structured PPP,” Ewalefoh said.

He explained that negotiators carefully consider toll pricing to keep charges fair. A portion of the revenue is set aside specifically for road maintenance. Under the concession agreements, the government does not bear additional maintenance costs for the duration of the contract.

The government must repair potholes within 48 hours, and it funds major routine repairs from the dedicated toll revenue.

Source: punchng.com

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