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Tuesday 22 October 2024

Equinix Completes MainOne Integration, Strengthening Its Nigerian Data Center Footprint


Equinix, a leading global data center and colocation service provider, has successfully completed the integration of Nigerian connectivity company MainOne, two years after a $320 million acquisition in 2022. The move solidifies Equinix's strategic position in Nigeria’s rapidly growing data center market.

The integration process, which involved merging resources, personnel, and infrastructure, included new employment contracts for MainOne staff. Although salary increases were part of the deal, some employees expressed dissatisfaction, with insiders revealing that the adjustments will take effect in March 2025, aligned with the company’s fiscal year-end. Some concerns also surfaced over compensation being pegged to the naira.

The complex integration required the migration of workloads, including the transfer of data and IT processes across multiple environments, a challenge common in large-scale mergers like this. MainOne will continue to operate under the brand “MainOne, Solutions by Equinix,” while its data center subsidiary, MDXi, will be rebranded under the Equinix umbrella. Funke Opeke will remain as managing director.

Equinix has ambitious expansion plans in Nigeria, with three new data centers in the pipeline. Projects include a major interconnection hub on Victoria Island slated for completion in 2025, a 1,000-rack facility in Lekki scheduled for 2026, and a site under construction in Port Harcourt. These efforts are bolstered by the arrival of Meta’s 2Africa submarine cable, further enhancing Nigeria’s digital infrastructure.

The timing of Equinix’s expansion is ideal, coinciding with a rapid rise in demand for data center services in Nigeria. Local operators like Rack Centre, Medallion, and Open Access Data Centre (OADC) are also scaling up their operations to meet this growing need. With Equinix entering the scene, competition is set to increase, driving innovation and significantly enhancing Nigeria’s ability to meet its expanding digital infrastructure requirements. This heightened activity underscores the country’s pivotal role as a hub for data services in Africa.

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