Lagos Data Centre Rents ₦3.4M/sqm/Year Q1 2026: Estate Intel Report & Investment Outlook
Estate Intel’s Q1 2026 Africa Data Centres & Colocation Market update confirms that prime colocation rents in Lagos have climbed to ₦3.4 million per square meter per year in newly commissioned facilities — the highest rate ever recorded in West Africa outside South Africa.
This represents a significant jump from 2025 averages (₦1.8M–₦2.8M/sqm/year) and reflects extreme supply tightness:
- Existing operational stock: ~65 MW (mostly legacy colocation & enterprise facilities)
- Announced / under-construction pipeline: >220 MW cumulative (phased delivery through 2030)
- Lagos share: 85–92% of the total pipeline power capacity
Core Drivers Behind the Rent Surge
- Hyperscaler & Cloud Demand AWS, Azure and Google Cloud resellers are expanding aggressively in West Africa, requiring low-latency, carrier-neutral space.
- Fintech & Digital Economy Scale Paystack, Flutterwave, Moniepoint, PalmPay and others need high-availability infrastructure for transaction processing and data sovereignty compliance.
- New Submarine Cable Landings Equiano (Google, 2022), 2Africa (Meta-led, 2024–2025 phases), Medusa (ongoing) have dramatically improved international connectivity, making Lagos a viable regional hub.
- Supply Lag & High Barriers Power reliability, fibre last-mile, security clearances and land acquisition delays mean new capacity is coming online slower than demand — creating upward pressure on rents.
Current Prime Colocation Rates (Q1 2026 – New Facilities)
| Facility Tier / Location | Power Density (kW/rack) | Monthly Rent per sqm (gross) | Typical Lease Term | Key Tenants / Notes |
|---|---|---|---|---|
| Hyperscale-ready (Lekki, VI) | 10–20 kW | ₦2.8M – ₦3.4M | 10–15 years | Cloud providers, large fintech |
| Carrier-neutral colocation (Ikeja, Lagos Island) | 5–12 kW | ₦1.9M – ₦2.6M | 5–10 years | Telcos, banks, enterprises |
| Enterprise / Mid-market (mainland) | 3–8 kW | ₦1.2M – ₦1.8M | 3–7 years | SMEs, local data needs |
Major Facilities Signing or Commissioning in Q1 2026
- Equinix Lagos 1 — New $22M+ facility (carrier-neutral, hyperscale-ready) expected to open Q1–Q2 2026
- Open Access Data Centres Ilasan — 24 MW phase 1 progressing; early tenants signing at top-end rates
- 21st Century Technologies — Multiple Lagos sites expanding (part of ~65% pipeline share with partners)
- Rack Centre & MainOne — Ongoing colocation growth in Lagos, focusing on connectivity
- Emerging entrants — Kasi Cloud, CtrlScale, MDXi and unnamed hyperscale projects in planning
Power & Connectivity Status (Q1 2026)
- Power: Most new facilities use hybrid gas + solar + battery setups (4–12 hour backup standard). Grid reliability remains the #1 constraint.
- Fibre: Multiple cable landings have eased international bandwidth, but last-mile distribution in Lagos mainland still lags.
- Cost Structure: Power is 60–70% of OPEX in non-subsidized sites — driving adoption of solar hybrids.
Why Institutional & International Capital Is Flooding In
- Long-term stability: 10–15 year leases with blue-chip tenants (telcos, banks, cloud providers)
- Inflation hedge: Escalation clauses (5–8% annual) + dollar-linked leases common
- Yield premium: 12–18% net yields vs 8–15% in traditional commercial/residential
- Global comparables: Lagos now competes with Nairobi & Johannesburg on connectivity & cost
- Limited supply: High barriers (power, fibre, land, security) keep new entrants slow
Risks & Considerations
- Execution delays (power readiness, permitting)
- High capex per MW — best suited for institutional / international capital
- Regulatory uncertainty (possible new data sovereignty rules)
Final Thoughts
Lagos data centre rents reaching ₦3.4M/sqm/year in Q1 2026 confirms the asset class has moved from niche to core infrastructure investment.
With a pipeline >220 MW against ~65 MW existing stock, tight supply and explosive digital demand are creating one of the strongest yield + appreciation opportunities in Nigerian real estate today.
For investors with access to scale, this is the highest-conviction play in the sector right now.
Are you tracking data centre investments in Lagos? Share your view below!
Disclaimer: This information is for general purposes only and not legal advice. Consult a qualified real estate lawyer for guidance.
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