For years, the economics of African cloud infrastructure followed a simple pattern. Data generated on the continent was processed and stored elsewhere, mostly in Europe or the United States, while subscription fees and processing costs flowed out. One estimate suggests that Nigeria alone loses approximately USD 850 M annually to foreign cloud infrastructure.
That pattern is now being disrupted. Across the continent, governments are introducing data localisation frameworks, establishing national AI agencies and backing locally owned data centres. The goal, it appears, is not just to keep data within borders but to build the infrastructure that will underpin the next generation of digital economies.
More than 36 African countries now have data protection legislation in place or in advanced stages, according to industry tracking. Nigeria's Data Protection Act, enacted in 2023 and implemented in March 2025, now requires major data processors to undergo annual compliance audits. The Central Bank of Nigeria has gone further, mandating that all payment transaction data generated in the country must be stored and managed locally from January 2027.
