MTN Group is teaming up with UAE investor Tarek Al Ashram to build a new generation of AI-ready data centers across Africa through Africa Data Hub Holding Limited. The venture brings together MTN’s continental infrastructure footprint and market reach with Al Ashram’s data-center investment and operating experience, with South Africa and Nigeria selected as the first priority markets.
The partnership is a significant part of MTN’s Ambition 2030 strategy as the telecom group expands beyond connectivity into digital infrastructure capable of supporting artificial intelligence, cloud platforms, enterprises and other data-intensive services.
Key Overview
- Africa Data Hub Holding Limited will be the platform used to develop and scale new data-center opportunities across Africa.
- South Africa and Nigeria are the initial priority markets.
- MTN is expected to be a minority investor, while its UAE partner provides most of the capital and specialist expertise.
- The first phase is expected to target about 150MW of data-center capacity across the two markets.
- Bayobab will participate as a shareholder and provide open-access connectivity and market support through its pan-African network.
- MTN has not yet disclosed the venture’s total investment value, exact ownership split or detailed construction timetable.
MTN Builds a New Infrastructure Growth Platform
The partnership marks a deeper move by MTN into the physical infrastructure needed to power Africa’s cloud and AI economy. Through Africa Data Hub Holding Limited, the partners plan to combine MTN Digital Infrastructure’s African footprint, local market knowledge and infrastructure assets with specialist investment, development and operating capability.
Tarek Al Ashram, who co-founded KKR-backed Gulf Data Hub, is backing the venture through his own investment platform. His involvement brings experience from the Middle East, where large-scale data-center development has accelerated alongside cloud adoption, digital services and AI demand.
MTN Chief Executive Ralph Mupita has indicated that MTN will remain a minority investor, while the partner contributes most of the capital and technical expertise. That structure gives MTN exposure to a capital-intensive growth market without requiring the telecom operator to fund the entire buildout itself.
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South Africa and Nigeria Lead the First 150MW Phase
The initial development phase is expected to target about 150MW of capacity across South Africa and Nigeria. Both markets combine large populations, growing digital activity and rising enterprise demand, making them logical starting points for a pan-African data-center platform.
South Africa already has one of the continent’s deepest data-center ecosystems. One 2026 market estimate values the sector at about $670 million and projects it could reach $1.44 billion by 2031, representing annual growth of roughly 16.4%.
Competition is also intensifying. Cape Town recently approved rezoning linked to two proposed Equinix data centers whose combined power requirements could reach roughly 170MW, highlighting both the scale of new investment and the infrastructure demands that increasingly accompany hyperscale projects.
Nigeria gives the venture access to another major digital economy where cloud adoption, financial technology, streaming, enterprise software and AI services are increasing demand for locally hosted computing capacity.
Bayobab Gives the Venture a Connectivity Advantage
Bayobab, MTN’s digital connectivity business, will be a shareholder in the new company and will provide open-access connectivity and go-to-market support through its pan-African network.
That role is strategically important because data centers do not operate in isolation. Their commercial value depends on fast, resilient connections to cloud providers, enterprises, internet exchanges and users. Combining facilities with existing cross-border fiber connectivity could help Africa Data Hub offer customers both computing infrastructure and the networks needed to move large volumes of data across markets.
AI Growth Brings Infrastructure Challenges
Building AI-ready facilities also creates challenges beyond financing. High-density computing requires significant electricity, cooling capacity, resilient backup systems and high-speed fiber, while large projects can face permitting and environmental scrutiny.
Recent disputes surrounding proposed data-center developments in Cape Town show that electricity and water requirements are becoming important considerations as hyperscale projects expand. Africa Data Hub will therefore need to balance rapid deployment with reliable power, efficient cooling, regulatory approvals and sustainable resource use.
The venture’s long-term significance will depend on how quickly MTN and its partner can turn the platform into operating capacity. If the first South African and Nigerian projects are delivered successfully, Africa Data Hub Holding could give MTN a new infrastructure growth engine while expanding the local computing capacity needed for Africa’s next phase of AI and cloud adoption.
Sources: W.Media / MTN Group / Reuters / Bloomberg Law / Mordor Intelligence
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