MTN Group is pushing ahead with plans to build AI-enabled data centers in South Africa and Nigeria, betting that the continent’s digital infrastructure needs are set to grow exponentially as demand for AI compute capacity accelerates.
The group said in its annual results for the year ending December 2025 that it completed comprehensive market assessments in the first quarter of 2025 and has confirmed South Africa and Nigeria as priority markets for greenfield data center development. MTN said it has shortlisted strategic partners with whom it is negotiating co-investment structures and operating models, without naming the partners or disclosing financial details.
“The broader industry shift towards large-scale AI compute infrastructure — driven by rapid growth in model training, inference and data-intensive workloads — reinforces the substantial opportunity MTN Digital Infrastructure is positioning for in Africa,” the group said.
The data center push forms one of three strategic pillars under MTN’s new Ambition 2030 strategy, which reorganizes the business around connectivity, fintech and digital infrastructure. Within the digital infrastructure pillar, the group has set three priorities: advancing fiber networks, expanding AI-enabled data centers and unlocking tower value.
MTN’s existing digital infrastructure business, housed under the Bayobab brand, delivered resilient results in 2025 despite some headwinds. The platform generated consolidated external revenue of 5.6 billion rand, with earnings before interest, tax, depreciation and amortization rising 38.8% in constant currency to 1.8 billion rand, supported by an improved revenue mix and cost-optimization efforts. The fiber segment was the standout performer, delivering external revenue growth of 41.2% in constant currency, driven by new fixed-connectivity infrastructure contracts, newly launched fiber companies, ongoing network expansion and enhanced service delivery.
A notable milestone in the fourth quarter of 2025 was the activation of the 2Africa West Subsea Route, delivering high-speed, low-latency capacity along the full West African coastline. MTN Digital Infrastructure also secured a 15-year license through its South Sudan subsidiary in the fourth quarter, authorizing the construction and operation of electronic communications systems.
The data center ambitions sit alongside MTN’s proposed acquisition of approximately 75% of IHS Holdings it does not already own, announced Feb. 20. Structured to cover only IHS’s African operations, MTN said the deal would establish it as the largest and most complete digital infrastructure provider in Africa, with a strengthened position in passive infrastructure for both MTN operations and third parties.
MTN’s push comes amid a broader wave of investment in African digital infrastructure. Microsoft has committed 5.4 billion rand to data center development in South Africa, and several hyperscalers and colocation providers have been expanding capacity across the continent.
The group plans to provide further details of its digital infrastructure strategy and capital allocation priorities at a Capital Markets Day scheduled for June 2026.
#MTN #Group #Targets #South #Africa #Nigeria #AIEnabled #Data #Centers #Ambition #Strategy
