World

2026

Africa’s largest telecom operator MTN Group and Dubai-based tycoon Tarek Al Ashram have agreed to build 150 megawatts (MW) of AI data centres in Africa to power the continent for the next growth frontier.&nbsp;According to a Bloomberg report on Thursday, Al Ashram, who is also the co-founder of KKR &amp; Co-backed Gulf Data Hub, will use his own investment firm to back the new Africa Data Hub Holding venture.&nbsp;In response to queries, he noted that the plan will help shape Africa’s growth.“We see significant potential to bring our experience in developing and operating large-scale data centre platforms to African markets,” said Al Ashram.<figure class="wp-block-image size-full"><img width="941" height="617" src="https://technext24.com/wp-content/uploads/2026/08/Tarek-Al-Ashram-.jpg" alt="Tarek Al Ashram" class="wp-image-289651"><figcaption class="wp-element-caption"> Tarek Al Ashram (IM: ITP net) </figcaption></figure>While Africa currently has over 210 data centres that store cloud information, the facilities are still short of the intelligence needed to fuel the next line of technological transition. Traditional data centres host websites and manage databases, whereas AI data centres serve as AI factories.&nbsp;With an estimated 19 dedicated AI data centres across 7 countries, with total capacity reaching 1.3 gigawatts (GW), Africa only houses less than 1% of the world’s AI data centre capacity, according to World Economic Forum data.Although large AI data centres, including a 1 GW facility planned by Microsoft and G42 in Kenya, are in the works, they are yet to materialise. The facilities are needed to increase the continent’s digital-readiness capacity as Africa’s AI market is projected to grow from $4.5 billion in 2025 to $16.5 billion by 2030, according to Mastercard.In his reaction, Al Ashram said he sees growing demand for data centres on the continent and wants to be a part of that supply, along with MTN. He noted that Africa now presents a similar opportunity to what the Middle East has experienced over the years.According to him, the demand for AI data centres is driven by “strong underlying demand, rapidly expanding digital economies and an increasing need for resilient and scalable infrastructure.”<figure class="wp-block-image size-full"><img width="972" height="581" src="https://technext24.com/wp-content/uploads/2026/08/MTN-AI-data-centre.jpg" alt="" class="wp-image-289647"></figure>While funding figures are yet to be revealed, the project will be financed by MTN and the UAE-based company. However, building a 150MW AI data centre is expected to cost between $3 billion and $6 billion.&nbsp;Also Read: <a href="https://technext24.com/reviews/mtn-nigeria-ghana-power-first-half-revenue/" rel="noopener noreferrer nofollow">Nigeria, Ghana power MTN’s historic $7.18bn H1 ’26 revenue, offsetting South Africa struggles</a>.<h4 id="why-mtn-group-is-leading-the-ai-data-centre-push" class="wp-block-heading">Why MTN Group is leading the AI data centre push</h4>MTN’s Ambition 2030 carries significant weight for its plans to diversify its telecoms operation, digital payments, and the infrastructure that powers these services. In these lie the connectivity, fintech and digital infrastructure standpoints.&nbsp;The first step towards building a strong digital infrastructure for this growth is the ongoing process of <a href="https://technext24.com/news/mtn-ihs-fccpc-ncc-okays-to-sell-30-per-cent/" rel="noopener noreferrer nofollow">buying back the 70% stake it did not own in IHS Towers</a>. Once the deal is completed by H2 2026, MTN will have control over the infrastructure that powers its telecom operation, fintech and data centres.Telecom companies globally are investing in data centres to help meet growing consumer and enterprise demand for AI, and to grab a share of the income stream from the hyper-scalers. MTN, with 16 markets in Africa, wants to be a part of this trend.The plan to build a 150MW AI data centre in Nigeria and South Africa was first revealed in its <a href="https://www.mtn.com/mtn-group-delivers-record-margin-in-h1-2026-with-strong-earnings-cashflow-and-returns-initiates-share-buyback-programme/" rel="noopener noreferrer nofollow">H1 2026 earnings statement</a> released on Monday.<figure class="wp-block-image size-full"><img width="1920" height="1280" src="https://technext24.com/wp-content/uploads/2024/09/Ralph-Mupita-1.jpeg" alt="Ahead of Starlink launch in SA, MTN explores partners for satellite-internet service" class="wp-image-235570"><figcaption class="wp-element-caption"> Ralph Mupita, MTN Group President and CEO </figcaption></figure>While speaking at an event on Tuesday in South Africa, MTN Chief Executive Ralph Mupita said:“The approach that we are taking on the building of our AI business is to partner with third parties, and the entity that we are partnering with has built data centres in the UAE.”&nbsp;He added that “We are taking a phased approach and will start building out 150 megawatts of AI data centre capacity.”The facility is expected to help the company process its workflows and rent out space to hyperscalers, other enterprise businesses and governments. This comes as Africans want to host their data sets on home soil instead of having them outside the continent, which provides less control.According to Mupita, preparations have started for the AI data centre build-up. He noted that MTN has been purchasing land and negotiating power agreements to ensure it can do a multi-phased build-out of facilities in Africa.&nbsp;

MTN and Dubai-based tycoon Al Ashram to build 150MW AI data centres for Africa’s growth

Technext.ng

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