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Nairametrics
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Kasi Cloud unveils 100MW data centre to cut Nigeria’s $850 million annual cloud spend

Samson Akintaro by Samson Akintaro
May 21, 2026
in Sectors, Tech News
Kasi Cloud unveils 100MW data centre to cut Nigeria’s $850 million annual cloud spend
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Digital Infrastructure company, Kasi Cloud, has unveiled the first phase of its 100MW capacity data centre in a landmark move expected to retain in-country an estimated $850 million Nigeria spends annually on foreign cloud services.

The facility situated in Lekki was flagged off on Tuesday by government officials led by the Lagos State Governor, Mr. Babajide Sanwo-Olu, and the Minister of Finance, Mr. Taiwo Oyedele.

Described as the first AI-ready data centre in West Africa, the Kasi Lekki campus, developed on about four hectares in Maiyegun, Lekki, sits in proximity to six subsea cable landing systems, including Equiano and 2Africa, a location the company says gives it a strategic advantage for low-latency connectivity and regional cloud distribution.

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What they are saying

According to the company, LOS1 is capable of delivering sub-50 millisecond latency for in-country workloads, positioning it as one of the most advanced digital infrastructure assets in the region.

  • Kasi Cloud said the facility also aligns with Nigeria’s National Cloud Policy 2025, which mandates in-country hosting for sensitive government and financial data, further strengthening the case for domestic cloud adoption.
  • A central argument from stakeholders at the flag-off was the economic cost of Nigeria’s reliance on foreign cloud infrastructure.
  • The company estimated that Nigerian enterprises collectively spend about $850 million annually on offshore cloud services, a figure that represents significant capital flight and loss of domestic reinvestment opportunities.

With LOS1 now entering operational readiness, Kasi Cloud said it is offering the first institutional-grade, AI-ready alternative built within Nigeria’s borders, designed to retain data, infrastructure spending, and associated digital economy value within the country.

The facility is also expected to reduce latency costs, improve data sovereignty, and lower operational friction for sectors such as banking, fintech, telecommunications, and public services, all of which rely heavily on foreign cloud providers.

  • “Kasi was founded on the belief that Africa deserves world-class sovereign digital infrastructure built for the AI era,” said Johnson Agogbua, Founder and CEO of Kasi Cloud Datacenters.
  • “For too long, Africa’s data has powered someone else’s economy. Today, that changes. This flag-off marks the transition from development into commissioning and operational readiness — as we deliver world-class sovereign cloud and AI infrastructure, built in Lagos, for Africa’s digital future,” he added.

At full scale, the campus is designed to reach about 100MW of critical IT capacity, while the first facility, LOS1, has been built to support high-density artificial intelligence workloads, accelerated computing, enterprise cloud services, and connectivity platforms.

More insights

Speaking at the flag-off ceremony, Lagos State Governor Babajide Sanwo-Olu reaffirmed the state’s commitment to world-class digital infrastructure, describing it as central to Lagos’ economic transformation agenda.

He noted that sustaining Lagos’ position as Nigeria’s “Centre of Excellence” requires continuous investment in infrastructure and human capital development, adding that digital infrastructure has become a key pillar of nation-building.

  • “If Lagos is to sustain its Centre of Excellence status in Nigeria, vital infrastructural development is critical to achieving human capital development.  
  • “The economic impact that infrastructure improvement has on nation-building cannot be overemphasized,” the Governor said.

Also speaking, the Managing Director and Chief Executive Officer of the Nigerian Sovereign Investment Authority (NSIA), Aminu Umar-Sadiq, reiterated the organisation’s view of sovereign digital infrastructure as a long-term national economic strategy.

Umar-Sadiq said NSIA’s investment in Kasi Cloud reflects its focus on high-impact projects capable of transforming critical sectors of the economy.

  • “We expect that the transformative impact of this infrastructure on the domestic tech space will reposition Nigeria. The Board and Management of the Authority is proud to be associated with this development,” he said.

Kasi Co-Founder Mark Adams said Africa remains one of the most attractive global markets for digital infrastructure expansion, driven by rising demand for cloud services, artificial intelligence, and content distribution.

He said Lagos is uniquely positioned to serve as the continent’s digital gateway, with the Kasi Lekki campus providing the foundational infrastructure required to support that role.

Inside the Lekki hyperscale campus 

The Kasi Lekki campus has been designed to hyperscale standards comparable to leading global data centre hubs.

  • Key features include carrier neutrality, direct 132kV transmission power connection, hybrid energy systems combining gas, solar, and battery storage, and N+1 redundancy architecture.
  • The facility is also aligned with Nigeria’s Data Protection Act 2023 and Uptime Institute Tier III standards, with a targeted power usage effectiveness of 1.6.
  • With sub-50 millisecond latency for domestic workloads and proximity to multiple subsea cable systems, the campus is expected to significantly improve Nigeria’s cloud competitiveness while supporting the rollout of AI-driven enterprise services.

Following the flag-off, the project will proceed through phased commissioning and systems integration as it moves toward full commercial operations.

What you should know 

Last year, the Chief Executive Officer of Digital Realty Nigeria, Engr. Ike Nnamani, had lamented that all the data centres in the country were still years away from being able to support core Artificial Intelligence (AI) workloads.

According to him, the closest data centre in the country as of that time were facilities that could run cloud services.

But with the launch the AI-ready Kasi Cloud data centre, the story is changing for the AI ecosystem in Nigeria.


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Samson Akintaro

Samson Akintaro

Samson Akintaro is a tech enthusiast and has over a decade experience covering and writing about the tech industry. He is currently the Tech Analyst at Nairametrics.

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