Telecom
Digital Economy Offers Potentials for Data Centres – Durvasula
Tesh Durvasula was recently appointed chief executive officer of Africa Data Centre. In a chat with chike onwuegbuchi, he explained the potentials of ADC’s new facility located in Lagos.
What is the potential of the business in Lagos where there are more than 5 data centres?
Firstly, I’d like to say that there’s tremendous growth in the need for digital tools and services across the world. Africa is no different, and its citizens, like all others around the world, want to enjoy the same benefits that participating in a digital economy offer.
However, to provide these services you need infrastructure such as fibre optics and data centres, and cassava technologies centres around bringing these services and more to Africa. Africa’s population is a young one, and they estimate that over the next 10 years, the largest number of the population will be in the 18 to 35 range.
While other nations and continents such as Europe and North America, have an ageing population. Our population is only getting younger, and they want to do things differently. They all have smartphones, which is like having a supercomputer in their pocket, and they are excited and eager to participate in this new economy.
There’s no doubt that Nigeria is leading this charge, and I am sure that we are underestimating the capacity we need. Africa is going to be a place where digital infrastructure will continue to expand, across Africa.
Reports estimate that we need 1000MW and 700 facilities to meet Africa’s growing demands and bring the rest of the continent to a level place in terms of capacity and density, but if history has taught us anything in this industry, and I’ve been in this industry for 25 plus years, is that our ability to underestimate the demand side of this equation has been unbelievable. I believe we are underestimating Africa’s demand, much like we underestimated in in Europe and Asia. We are not worried about business in Lagos at all.
Challenge of power and Data centre business that requires 24/7 power supply.
Electrical supply is a global problem at the moment. We’re leading up to a year in North America, you’re waiting up to two years in parts of Europe, and those trying to get power in the north of London right now, could be waiting till 2025.
Nigeria is not unique in this situation. The electrical supply and the demands on our electrical grids as a planet, have continued to increase, and people are working hard to meet this demand as more investment comes into Africa, and into local cities, municipalities and jurisdictions for for operating companies.
You’re going to see that, and we have a new renewable energy platform platform called Distributed Power Technologies or DPT, which is part of the Cassava Group, and Africa Data Centres taking advantage of our relationship with DPT to help us meet that need. DPT developing a 10MWp solar PV power plant for our new Lagos data centre.
We aim to work closely with them, to ensure that our clients are guaranteed the most reliable data centre services.
In fact, we believe that advancements in storage technology will play a crucial role in emerging commercial and industrial markets, and this will lessen the intermittency of renewables, and at the same time, will provide redundancy during blackouts.
DPT is also working alongside Tesla to utilise its Megapack battery storage technology which will be deployed at off-site solar farms and will store the excess power that is generated during the day, greatly increasing the availability of dispatchable energy.
These will also be installed within our data centres, where storage is becoming a practical solution to carry sites when blackouts occur.
Target for locating your facility in Lagos
No, as with all our data centre investments in key areas on the continent, our new 10MW facility in Lagos will serve a hub for the entire West-Africa region.
What makes your facility different from others
At Africa Data Centres, we pride ourselves on being is the largest network of 100% interconnected, carrier- and cloud-neutral data centre facilities on the continent.
What also sets us apart is our commitment to lowering our carbon footprint, and as a company that promotes sustainability, we cannot emphasise enough that there will be no question of sacrificing the environment to carry out our ambitious digitisation plans.
This is a trade-off Africa Data Centres is simply not even prepared to contemplate. Our strategy goes far beyond boosting out bottom line, for us, it is all about empowering and uplifting Africa’s citizens, protecting the environment, and uplifting the economy. We are not just here for the money, we are here to provide jobs, and help Africa achieve its digital ambitions.
Competing with global brands and organisations’ interest
Although hyperscale providers such as AWS, Azure and Google have global cloud services built upon an extensive network of self-built data centres, they do not have Africa-based facilities, creating latency and sovereignty issues and hampering the growth of their cloud offerings in the region.
Nigeria is one of the Africa Data Centres key markets on the continent, because Nigerians are eager for digitisation, as organisations of every type and size in Africa accelerate their digital transformation journeys in the aftermath of the COVID-19 pandemic.
As part of the recently launched Cassava Technologies group, Africa Data Centres plays a critical role when it comes to providing this very digital infrastructure that is needed to support the mass adoption of digital services for consumers and business in the region.
What 10mw Data Centre facility means
Our new 10MW Lagos facility was built by us in response to the soaring demand Africa Data Centres has seen from hyper-scalers, key cloud operators as well as multi-national enterprises that already employ our services and have shown a sharp interest in being a part of bringing digitisation at scale to the West Africa region.
Megawatts of MW are used to measure the output of a power plant, or the amount of electricity required by an entire city. One megawatt is equal to 1,000 kilowatts, or 1,000,000 watts. Power is the key element that brings a data centre facility to life and it is what keeps customers’ IT infrastructure up and running even in the event of a disruption.
Power is the most critical element of any data centre. In the data centre sector, megawatts are reserved for wholesale colocation providers that require enough power for thousands of servers, customers and their and related IT hardware.
About Tesh the new Chief Executive Officer of Africa Data Centres
In my new role as Chief Executive Officer of Africa Data Centres, I will be charged with driving growth, innovation and strategy of Cassava Technologies’ data centres to meet Africa’s rapidly growing demand for data and digital infrastructure.
I am an experienced technology and real estate industry executive with a proven, 25-year track record of successful leadership and value generation in the digital infrastructure sector.
I hope to lead the Africa Data Centres team as we rapidly expand our footprint of hyper scale data centres throughout Africa with a plan to add an additional ten data centres in the top ten economic centres in Africa. Before joining Africa Data Centres, I served in a variety of executive roles at CyrusOne, culminating in his appointment as the Chief Executive Officer of the company.
And, before that, I served as president of Europe operations for CyrusOne, overseeing CyrusOne’s expansion into England, Ireland, France and Germany, helping grow CONE into one of the largest publicly traded REIT’s in the US.
I believe the potential to grow digital infrastructure is bigger in Africa than anywhere else across the globe and this will present a number of opportunities for economic transformation. I am extremely pleased to have joined Africa Data Centres and Cassava Technologies, particularly now as Africa has become one of the fastest-growing data usage regions in the world. I feel we are well poised to make an invaluable contribution to Africa’s rapidly developing digital ecosystem.
Airtel Nigeria has upgraded its My Airtel App with a fully integrated eShop feature, transforming the platform into a complete digital shopping destination. With this update, customers can now enjoy a full retail experience directly within the existing subscriber app—beyond simply buying airtime or data.
The eShop feature offers a wide selection of products ranging from Airtel-branded items such as Home Broadband (HBB) devices and everyday retail items such as electronics, home appliances, fashion, and beauty products.
Speaking on the new feature, Director of Marketing at Airtel Nigeria, Ismail Adeshina, emphasized the brand’s ongoing focus on innovation and customer-centricity.
“At Airtel, we understand that today’s customers value convenience above all else. This update is part of our broader mission to simplify digital experiences and make everyday transactions easier and faster. By integrating the eShop directly into the My Airtel App, we’re eliminating unnecessary steps and giving users the freedom to do more within a single platform,” he said.
The update enhances the app’s functionality by allowing customers to access the eShop directly from the home screen, eliminating the need for external redirection to web browsers or third-party platforms.
“We’re moving beyond basic connectivity towards building a digital ecosystem that supports the lifestyle needs of our customers. Whether it’s purchasing a device, recharging, or shopping for everyday items, we’re putting more power and choice in the hands of our users,” Adeshina added.
The My Airtel App continues to serve as a key platform for Airtel subscribers, offering self-service options, quick access to bundles, account management tools, and now, a more robust digital shopping channel.
Telecommunications subscribers in the country could soon be paying 5 percent more for data and voice services if President Bola Tinubu signs Nigeria Tax Bill 2024 into law.
Passed in the Senate on May 8, 2025, the bill reintroduces a controversial 5 percent excise tax on telecom services, a move telecom operators, subscribers and consumer rights groups have strongly opposed.
The bill revived the excise tax first introduced in the Finance Act of 2020 during the administration of former President Muhammadu Buhari.
President Bola Ahmed Tinubu had suspended the tax in July 2023, citing concerns that it could exacerbate inflation and hinder access to digital services, especially for low-income Nigerians.
The 2020 Finance Act had expanded the list of goods and services subject to excise duty, including telecom services.
However, the measure drew immediate and widespread criticism from telecom operators and consumer advocacy groups, who argued that the additional cost would burden citizens and increase the price of essential services in an already fragile economy.
Excise duty is a tax on certain goods produced or sold within a country and other activities as may be specified in the enabling law, including services.
As contained in the 2022 Finance Act, the tax is chargeable on all services regulated by the Nigerian Communications Commission (“NCC”) listed as postpaid and prepaid services at the rate of 5% for 2022, 2023 & 2024.
According to a report by PWC at the time, prior to the suspension of excise duty on certain goods in 2009, excise duty was applicable on recharge cards/vouchers.
The telecommunication companies are to pay the tax based on the excisable value of postpaid and prepaid services.
In July 2023, President Tinubu signed an Executive Order suspending the “5% Excise Tax on telecommunication services as well as the Excise Duties escalation on locally manufactured products.”
Mastercard Economics Institute (MEI) has released its annual Travel Trends 2025 report, revealing the latest consumer spending insights and motivation when it comes to travel.
Cross-border movement is often influenced by the most pressing economic factors of the moment, such as exchange rates and geopolitical tensions. However, these are not the only factors driving consumers’ travel spending decisions, including those in Africa. Personal and purpose-driven factors remain powerful even when economic uncertainty looms.
Building on the resilience of the global travel sector seen last year, the 2025 report highlights how destinations across the African continent are increasingly appealing to tourists and, creating additional opportunities for local markets to develop tourism.
“Africa is emerging as a global leader in purpose-driven travel, where nature, wellness, and culinary experiences are redefining the continent’s tourism landscape. These trends present a powerful opportunity to drive inclusive growth, support local economies, and position Africa as a key player in the future of global tourism,” said Mark Elliot, division president, Africa, Mastercard.
Whether drawn by Namibia’s wellness retreats, South Africa’s wilderness experiences or Morocco’s vibrant culinary scene, travelers are expanding their horizons beyond traditional hotspots.
“Tourism is playing an important role in Africa’s growth story. Travelers are increasingly drawn to the continent’s natural beauty, culinary diversity, and wellness experiences. While economic and geopolitical factors matter, the pursuit of meaningful, purpose-driven travel remains strong. The Mastercard Economics Institute’s report sheds light on how countries are tapping into this trend to attract visitors and boost local economies,” said Khatija Haque, chief economist EEMEA, Mastercard Economics Institute.
By exploring a full range of travel motivations, the report identifies the main themes shaping travel today:
Africa trends:
- Nature-fueled adventures: South Africa and Zambia dominate cross-border spending around national park areas. Spending around South Africa’s major national parks far outpaced that of other countries, with nearly a quarter of the cross-border spending occurring within these zones. Zambia is also highly ranked as an outdoor adventure destination.
- Culinary crossroads: Marrakech ranks highly on the foodie list with its median restaurant hosting tourists from many different countries, often to enjoy meals of tagine and b’stilla. Cape Town is also on the list, with its bobotie dish proving popular with visitors.
- Wellness in the wild: Africa is establishing itself as a global leader in wellness-centered travel as consumers prioritize rejuvenation and self-care. Namibia, South Africa and Botswana are among the top destinations for travelers seeking spa-style and nature-based retreats and immersive eco lodges. Kenya is also ranked among the top 20 destinations for wellness In the Mastercard Wellness Index 2025.
Other global trends:
- Spa, summit and savor: Personal passions and goals motivate travel choices. Adventure-seekers are heading to the Nordics, where Finland’s national parks account for 7.1% of cross-border spending in the country.
- Summer destination draws: The Asia-Pacific region commands the list of trending summer destinations. Flight booking data reveals the top global destinations gaining most momentum for June-September travel, relative to last year. Tokyo is the number one trending spot for summer 2025, followed by Osaka and then Paris.
- Fuelled by fans: Fans travel internationally to see their favorite teams and athletes play. Case in point? During Shohei Ohtani’s World Series debut, spending by Japanese visitors in Los Angeles surged by 91%, six times the broader cross-border boost.
- Money matters: Despite geopolitical tensions and fluctuating prices, the factors that motivate consumers to travel are often more complex than just economic. But currency depreciation can make certain destinations, like Japan, more attractive due to their better value for money.
- Wheeling and dealing closer to home: In general, business travelers favor longer trips within their own regions, driven by hybrid work models and geopolitical uncertainty. However, there are exceptions, with UK businesses spending a growing share of their travel budgets in Asia, Europe, the Middle East and Africa.
Mastercard is dedicated to helping the global tourism sector grow through market analysis and high-frequency, data-driven insights that enhance the travel experience. By empowering destinations and businesses to better understand evolving consumer trends, Mastercard is helping to shape a more connected and resilient future for travel across Africa.
You can view the full “Travel Trends 2025: Purpose-driven journeys” and other reports and insights from the Mastercard Economics Institute can be found here.
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