MTN Group is pushing ahead with plans to build AI-enabled data centres in South Africa and Nigeria as part of a broader bet that the continent’s digital infrastructure needs are about to grow exponentially.
The group said in its annual results for the year to December 2025 that it completed comprehensive market assessments in the first quarter of 2025 and has confirmed South Africa and Nigeria as priority markets for greenfield data centre development.
Following what it described as a rigorous evaluation process, MTN has shortlisted key strategic partners with whom it is negotiating co-investment structures and operating models. The group did not name the partners or disclose financial details.
MTN said it enters 2026 with a clear execution pathway for what it aims to make a competitive and scalable data centre platform, driven by what it sees as a substantial opportunity in Africa.
“The broader industry shift towards large-scale AI compute infrastructure — driven by rapid growth in model training, inference and data-intensive workloads — reinforces the substantial opportunity MTN Digital Infrastructure is positioning for in Africa,” the group said.
The data centre push forms one of three strategic pillars under MTN’s new Ambition 2030 strategy, which reorganises the business around three platforms: connectivity, fintech and digital infrastructure. Within digital infrastructure, the group has set three priorities: advancing fibre networks, expanding AI-enabled data centres and unlocking towers value.
Bayobab delivers
MTN’s existing digital infrastructure business, housed under the Bayobab brand, delivered resilient results in the 2025 financial year, despite some headwinds. The platform generated consolidated external revenue of R5.6-billion, with Ebitda — earnings before interest, tax, depreciation and amortisation — rising 38.8% in constant currency to R1.8-billion, supported by an improved revenue mix and cost-optimisation efforts.
The fibre segment was the growth standout, delivering external revenue growth of 41.2% in constant currency. This was driven by new fixed-connectivity infrastructure contracts, revenue contributions from newly launched FibreCos, ongoing network expansion and enhanced service delivery. MTN said it continued to accelerate fibre roll-out across its footprint, including progress along the East African corridor.
Read: MTN South Africa struggles as competition bites in prepaid market
A notable milestone in the fourth quarter of 2025 was the activation of the 2Africa West Subsea Route, delivering high-speed, low-latency capacity along the full West African coastline.
MTN Digital Infrastructure also secured a 15-year licence through its South Sudan subsidiary in the fourth quarter, authorising the construction, installation and operation of electronic communications systems.
The communications platforms segment — which handles international and transit voice traffic — was a drag, with external revenue declining 24.3% in constant currency due to reduced traffic volumes. However, MTN said Bayobab secured new strategic partnerships during the year and undertook substantial work to enhance operational efficiency and drive more sustainable business models and margins.
IHS acquisition
The data centre ambitions sit alongside MTN’s proposed acquisition of the approximately 75% of IHS Holdings it does not already own, announced on 20 February 2026. The transaction is structured so that MTN would acquire only IHS’s African operations.
MTN said the deal would position its digital infrastructure platform to unlock value from towers through the provision of efficient and reliable passive infrastructure to MTN operations and third parties. The group believes the acquisition would establish it as the largest and most complete digital infrastructure provider in Africa.
Read: West Africa delivers big for MTN Group
MTN’s data centre push comes amid a wave of investment in African digital infrastructure. Microsoft committed R5.4-billion to data centre development in South Africa, while several hyperscalers and colocation providers have been expanding capacity on the continent.
The group will provide further details of its digital infrastructure strategy and capital allocation priorities at a Capital Markets Day planned for June 2026. — (c) 2026 NewsCentral Media
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