MTN Group, Africa’s largest telecom operator led by Zimbabwean executive Ralph Mupita, and Dubai-based tycoon Tarek Al Ashram are teaming up to develop data centers that will support artificial intelligence services across the continent.

Al Ashram, co-founder of KKR & Co.-backed Gulf Data Hub, will use his investment firm to support the new Africa Data Hub Holding venture, he said in response to questions.

“We see significant potential to bring our experience in developing and operating large-scale data center platforms to African markets,” Al Ashram said. Africa Data Hub will “help shape that growth,” he added.

Africa lags in AI infrastructure

Africa has the world’s fastest-growing and youngest population, but it remains far behind other regions in building the computing infrastructure needed to support artificial intelligence.

Companies including Microsoft Corp., Alibaba Group Holding Ltd. and Amazon.com Inc. already provide cloud services in Africa. Yet the continent accounts for less than 1% of global AI data center capacity, according to World Economic Forum data.

Some of the biggest proposed projects have also yet to materialize. Microsoft and G42, for example, have announced plans for a 1-gigawatt data center in Kenya.

Al Ashram said Africa’s growing digital economy and demand for reliable computing infrastructure make the region increasingly attractive for data center investment.

“Africa now presents a similarly compelling opportunity,” he said, pointing to rising digital demand and the need for resilient and scalable infrastructure.

MTN plans 150 megawatts

For MTN, the partnership is part of a broader push into digital infrastructure and new sources of revenue as demand for artificial intelligence grows.

Telecommunications companies worldwide are investing in data centers as businesses and consumers use more AI-powered services. Building their own infrastructure also gives operators an opportunity to sell computing capacity to cloud providers and other large customers.

“The approach that we are taking on the building of our AI business is to partner with third parties,” MTN Chief Executive Ralph Mupita said at an event Tuesday.

He said the company plans to take a phased approach, beginning with 150 megawatts of AI data center capacity.

The venture plans to develop facilities in Nigeria and South Africa. MTN expects to use some of the capacity for its own operations while leasing the rest to cloud providers, businesses and governments.

Governments are also showing greater interest in keeping sensitive data within their own jurisdictions, creating another potential source of demand for local data centers.

MTN has been acquiring land and negotiating power agreements as it prepares for a phased expansion of AI data centers across its markets, Mupita said.

MTN balances investment with growth

The company operates in 16 African markets and is pursuing its Ambition 2030 strategy across connectivity, fintech and digital infrastructure.

The Africa Data Hub partnership gives MTN a way to build computing capacity while sharing some of the capital and operating requirements with an experienced data center investor.

For Al Ashram, the venture provides an entry into a market where demand for AI infrastructure is expected to rise as African businesses, governments and consumers adopt more digital services.