Schneider Electric Tackles AI's Soaring Energy Demand

Schneider Electric is urging immediate improvements to Nigeria’s data center infrastructure due to the rapid growth in AI use and internet consumption, which are straining power and cooling systems.

Ajibola Akindele, the Country President at Schneider Electric, stated that the surge in artificial intelligence technologies is compelling businesses, colocation providers, and hyperscalers to reconsider their approaches to designing, powering, and cooling data centers.

He cautioned that Nigeria’s digital progress won’t last without developing wiser, more energy-saving infrastructure.

Akindele mentioned in a shared note that as data centers throughout Nigeria and Sub-Saharan Africa explore, strategize, and put into action changes within the shifting technology environment, multiple options stand out as feasible alternatives, The PUNCH. These encompass enhancing the design and infrastructure of data centers for improved power efficiency, cooling, and management systems.

The Nigerian data centre industry is expanding rapidly, driven by the growing demand for cloud services, digital platforms, and AI-powered applications.

According to industry figures, the market had a valuation of $278 million in 2024 and is anticipated to soar to approximately $671 million by 2030. Over this timeframe, power capacity is forecasted to increase over six times, nearing 280 MW.

Schneider Electric stated that artificial intelligence processes require considerably more power compared to conventional computational activities, noting that an individual AI inquiry can utilize up to tenfold the electrical output of a typical online search. According to their information, the world's AI-driven computational capabilities are expanding at a rate where they double roughly every 100 days, leading to an annual uptick in energy usage ranging from 26 percent to 36 percent.

The increasing energy demands have put significant pressure on data centers to upgrade, especially in Lagos, which holds 81 percent of Nigeria’s market share and houses most of the nation’s large-scale facilities.

Lagos acts as the main connectivity center with nine undersea cables reaching its shores; however, places such as Sagaru are increasingly being recognized for their potential in disaster recovery and adding geographical variety to network infrastructure.

Schneider Electric is aiming to fulfill AI's requirements by implementing various technological enhancements such as liquid cooling, combined cooling solutions, flexible rack setups, and sophisticated air circulation control.

Akindele stated that operators should consider adopting adaptable power distribution systems and collaborate with independent power producers as well as renewable energy suppliers to stabilize energy provision.

He mentioned that AI tasks demand densely packed, space-saving rack configurations along with effective heat management solutions. He pointed out that conventional air-cooling methods are inadequate for the tropics of West Africa.

Schneider Electric is also advocating for the implementation of AI to enhance data center operations, encompassing predictive maintenance and real-time energy optimization.

The firm recognizes potential in utilizing waste heat from data centers for industrial and commercial purposes, which is gaining traction in advanced economies. Despite being at an early stage in Nigeria, according to Akindele, this approach has the potential to enhance smart cities, university campuses, and industrial zones.

As of early 2025, Nigeria had secured investment pledges totaling $630 million to address an approximate $600 million infrastructure shortfall. This placed Nigeria at almost 10 percent of the continent's overall data center investments for 2024. Key players in this sector include Africa Data Centres, MainOne, OADC, MTN Nigeria, Airtel, and Rack Centre.

Although issues persist regarding grid stability and funding, Schneider Electric noted that the emergence of artificial intelligence presents a once-in-a-generation chance for Nigeria to spearhead Africa’s next digital era, provided that the infrastructure advances accordingly.

“Akindele stated that Nigeria’s data centers are central to this transformation. He emphasized that the moment to take action is right now.”

Provided by Syndigate Media Inc. ( Syndigate.info ).

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