MTN and Al Ashram Partner to Develop 150MW AI Data Centers Across Africa

MTN Group, Africa's largest telecommunications provider, has partnered with Dubai-based tycoon Tarek Al Ashram to establish Africa Data Hub Holding, a new venture focused on building 150 megawatts (MW) of AI-specific data centers across the continent. This initiative aims to address the current shortage of advanced data infrastructure needed to support Africa's rapidly expanding digital economy and the projected growth of its AI market.

The partnership will see Al Ashram, co-founder of Gulf Data Hub, leverage his investment firm to back the project. The plan is to develop facilities capable of serving as "AI factories," distinct from traditional data centers, to process complex AI workloads. This move is critical given that Africa currently hosts less than 1% of the world's AI data center capacity, despite a significant increase in overall data center facilities.

The investment, estimated to be between $3 billion and $6 billion, will be jointly financed by MTN and Al Ashram's UAE-based company. MTN's CEO, Ralph Mupita, highlighted a phased approach, with initial plans for facilities in Nigeria and South Africa. This aligns with MTN's Ambition 2030 strategy to diversify its operations and strengthen its digital infrastructure, including regaining control over critical assets like IHS Towers.

The project is also driven by the increasing demand from African enterprises and governments to host their data locally, ensuring greater control and sovereignty. By providing advanced AI infrastructure, MTN and Al Ashram aim to meet the continent's growing digital readiness needs and capitalize on the projected growth of Africa's AI market, which is expected to reach $16.5 billion by 2030.