Equinix, the world’s largest data center and colocation provider, has finalized the post-acquisition integration of Nigeria’s MainOne. Acquired for $320 million in 2022, MainOne now operates as “MainOne, Solutions by Equinix,” marking a significant milestone in Equinix’s expansion across Africa. This integration involved complex efforts to unify resources, systems, and operations between the two companies over nearly two years.
Strategic Motivation and Integration Challenges
Mergers like this aim to maximize efficiency, requiring alignment of corporate cultures, processes, and IT systems. However, employees at MainOne expressed mixed feelings about the process. While new employment contracts provided pay increases, expectations were not fully met, with some employees only expecting significant salary adjustments by March 2025, when the company’s fiscal year closes.
Integrating operational processes was also a significant task. Migrating workloads, data, and applications across infrastructures demanded considerable time. A telecom executive commented that the timeline is typical for organizations with complex product portfolios and varying operational systems. The workload migration aligned MainOne’s infrastructure with Equinix’s global network of 260 data centers across 71 cities, enabling seamless data exchange across regions, including transoceanic routes.
MainOne’s Position and Equinix’s Future Plans in Nigeria
MainOne, founded in 2010 by Funke Opeke, has been pivotal in Nigeria’s data infrastructure, running extensive terrestrial fiber networks and submarine cables. Equinix’s acquisition ensures continuity, with Opeke remaining Managing Director and leading further expansion projects. The company’s MDXi division, now under the Equinix name, will spearhead local data center operations.
Equinix is set to launch three major data centers:
- An interconnection hub on Victoria Island, slated for 2025.
- A 1,000+ rack data center in Lekki by 2026.
- A new facility in Port Harcourt, leveraging Meta’s 2Africa submarine cable.
Competitive Landscape and Market Expansion
This acquisition strengthens Equinix’s position in Nigeria’s data center market, which is experiencing growing demand due to increasing submarine cable capacity. Nigeria currently operates 14 data centers with a combined capacity of under 70 MW, and major telecoms like MTN and Airtel are entering the space, intensifying competition. Equinix also plans to extend its fiber networks across southern Nigeria, positioning the company to capitalize on expanding digital infrastructure needs.
Conclusion: A Pivotal Step for Equinix in Africa
The MainOne acquisition serves as a gateway for Equinix into Africa, providing a strategic foothold in Nigeria, the continent’s largest economy. This move enables Equinix to serve both global and local customers more effectively, leveraging MainOne’s established infrastructure. With additional investments planned in South Africa and a new data center in Johannesburg launching later this month, Equinix is well on its way to becoming a leading digital infrastructure provider across Africa.
This expansion not only solidifies Nigeria’s position as a data hub but also promotes regional connectivity, unlocking new opportunities for businesses operating on the continent.