MTN Group is planning to develop about 150 megawatts of AI-ready data-center capacity in South Africa and Nigeria, expanding its push into digital infrastructure as demand for computing power grows across Africa.
The telecommunications group is pursuing the project through Africa Data Hub Holding Ltd., a new venture established with a UAE-backed data-center investment platform. MTN will hold a minority stake in the venture, Chief Executive Officer Ralph Mupita said at a media roundtable this week.
The first phase will target about 150MW, with additional capacity possible depending on demand. MTN has not disclosed the investment size or the identity of its UAE-backed partner.
The venture was disclosed in MTN’s interim results for the six months ended June 30, when the company said it had entered into a strategic partnership to expand its data-center and related infrastructure business in Africa.
The move puts data centers alongside connectivity and fintech as areas of growth under MTN’s Ambition 2030 strategy. AI applications require large amounts of computing capacity, as well as reliable power, cooling and high-capacity connectivity, creating an opportunity for telecommunications operators with established infrastructure to expand into adjacent markets.
South Africa and Nigeria are the initial focus markets. MTN already has data-center operations in both countries, giving the group existing infrastructure and enterprise relationships from which to expand.
The company is also looking at ways to finance the expansion without carrying the entire cost itself. By retaining a minority position in Africa Data Hub, MTN can combine its network and customer base with external capital and data-center expertise. The company has not provided details on how much each partner will invest.
The data-center plans come as MTN reports stronger financial performance across its African operations. Group service revenue increased 17.5% to R115.3 billion in the first half, while adjusted headline earnings per share rose 21.3% to 793 cents. Core earnings increased 24.4%, according to the company’s interim results.
Fintech is another part of the group’s expansion beyond traditional telecommunications. Transaction value in MTN’s fintech business increased 33.8% to $330.5 billion in the first half, as the company expanded its payments and other digital financial services.
MTN is now considering going further into banking. Mupita said the company is evaluating banking licenses in selected African markets as it looks to expand lending through its Mobile Money business. MTN currently works with banks and other financial institutions to fund loans, but a banking license could eventually allow it to take deposits and lend from its own balance sheet.
The company is not planning to seek banking licenses across all of its markets. Mupita said MTN would focus on countries where it has large customer bases and significant activity in mobile wallets. Any move toward balance-sheet lending would also be gradual because it would expose MTN to greater credit and regulatory risks.
MTN is also returning capital to shareholders after the stronger first-half performance. The group approved a R6 billion ($375 million) share repurchase program, which forms part of its capital-allocation framework.
The company is simultaneously pursuing greater ownership of its tower infrastructure through its proposed acquisition of the remaining shares in IHS Towers. MTN agreed in February to acquire the shares it does not already own, with the transaction subject to regulatory approvals.
Nigeria’s competition regulator has approved the deal conditionally, including a requirement for MTN to sell down 30% of the Nigerian business to local investors. MTN said regulatory processes for the transaction remain ongoing.
The IHS transaction would give MTN greater control of infrastructure supporting its networks, while the Africa Data Hub venture would give the group a larger role in the infrastructure used to process digital workloads.
Together, the moves show how MTN is broadening its business beyond mobile connectivity. The group is investing in infrastructure for data and AI, expanding financial services and increasing its ownership of telecommunications infrastructure while using partnerships and capital-market transactions to manage the cost of that expansion.
For now, the 150MW data-center target is the clearest indication of the scale of MTN’s ambitions in AI infrastructure. The company has yet to disclose the specific facilities, investment commitments or timetable for the first phase, leaving the size and pace of the rollout dependent on power availability, customer demand and the completion of project development in South Africa and Nigeria.