Nairobi to host new data centre as Airtel diversifies revenue streams

July 8, 2025 in Companies, Infrastructure, Technology & Telecoms by Editor

Airtel Africa is set to deepen its footprint in Kenya’s digital infrastructure landscape with the establishment of a new state-of-the-art data center in Nairobi, marking a strategic move by the telecom giant into the fast-growing data management sector.

The Nairobi facility, with a projected capacity of 7 megawatts (MW), is expected to come online by mid-2026 and represents Airtel’s second data centre investment on the continent after its flagship project in Lagos, Nigeria, which is being constructed at a much larger scale of 36MW. Both data centres will be commercially operated and form part of Airtel’s long-term vision to diversify its revenue beyond voice and mobile money services.

The company said the move is aimed at addressing rising demand for reliable and affordable digital infrastructure across Africa. “These two data centres are the key stars in our portfolio,” Airtel Africa CEO Sunil Taldar said during an investor call earlier this year. “They will enhance access speeds, reduce data latency, and help lower the cost of digital services across the continent.”

The Nairobi project underscores Airtel Africa’s deliberate shift toward data management and cloud-based services as it seeks new revenue channels amid flattening growth in traditional telecoms offerings. The company’s launch of Nxtra—its dedicated data centre brand—in December 2023, signalled this strategic intent. Nxtra is focused on developing a pan-African network of carrier-neutral, energy-efficient data centres to support a burgeoning digital economy.

“These projects will not only boost our commercial profile but also catalyse digital transformation across sectors—telecommunications, financial services, health, and e-commerce,” Taldar noted. He emphasised the role of robust digital infrastructure in empowering Africa’s tech talent and innovation ecosystem.

According to Airtel, groundbreaking for the Lagos facility is set to take place within the next two weeks, with the Nairobi project following shortly after. Each facility is expected to take approximately two years to complete, with both coming online in 2026.

While the Nairobi centre is smaller in scale, its location in one of East Africa’s most vibrant tech hubs is strategically significant. Nairobi continues to emerge as a digital and financial services nerve centre, drawing investment from global tech players and startups alike.

The Kenyan data centre will offer colocation, cloud, and managed services tailored to businesses seeking secure and low-latency solutions. Airtel’s offering is expected to compete with a growing list of players in the African data infrastructure space, including Liquid Intelligent Technologies, IXAfrica, and international cloud providers such as Amazon Web Services and Microsoft Azure, which are also expanding across the continent.

Airtel’s entry into this space reflects the increasing monetisation potential of Africa’s digital transition. With mobile connectivity becoming near-ubiquitous, telecoms are looking beyond connectivity to value-added services in data, enterprise solutions, and fintech.

Kenya remains a key growth market for Airtel Africa, with recent years seeing major capital expenditure directed at expanding mobile money, 5G coverage, and now digital infrastructure. The investment in a data centre signals growing confidence in Kenya’s regulatory environment, digital economy, and regional importance.

Airtel Africa’s long-term vision includes establishing additional data hubs across other major African cities, creating a continent-wide data backbone that underpins cloud computing, AI, and digital enterprise services.