ACG Research, a Telecoms analyst and consulting firm, reports that caching content locally in a metro with a population of about 1 million can lead to a 50% cost reduction over the long-haul transport method within a five-year span.
This is according to Gbenga Adegbiji, MDXi West Africa General Manager.
Speaking during the Data centre Dynamics Conference, Adegbiji challenged the continent’s leading content and application providers to take advantage of the growing edge data centre ecosystem to exchange traffic on the continent, noting that this would significantly lower costs, improve performance of the existing content ecosystem and enable new technology use cases in Africa such as Electronic Gaming, Internet of Things (IoT), Artificial Intelligence (AI) and Big Data.
“Africa boasts some of the biggest opportunities, a population of 1.3billion people, the fastest growing digital consumer market, estimated to reach 600 million within the next seven years and 6-7% GDP growth by 2020,” said Adegbiji.
He emphasized that most of the typical concerns about Africa have been resolved.
“Local data centres have leapfrogged power supply issues by bypassing traditional transmission and distribution bottlenecks with direct grid connections.”
Adegbiji also noted the increased investments and growth in last-mile fibre infrastructure and the rise of home-grown companies building open-access networks to foster interconnection opportunities.
Reiterating that most issues with latency cannot be solved with technology alone due to geography.
Adegbiji urged global players to augment their data centre portfolios with edge deployments especially in Nigeria, to drive more value from the Internet.
“With Africa’s largest economy (90% of Anglophone West Africa’s GDP), third most populous nation by 2050, and 8th global internet user country with 45% of Africa’s internet users, Nigeria is a natural and strategic destination for West Africa-focused hyperscale players to offer real-time data processing at the edge. With robust Internet Exchange Points and access via local interconnection points, data centres such as MDXI provide a platform for different networks to directly interconnect with other operators and exchange traffic in Nigeria to guarantee lower bandwidth costs and improved margins for content owners and OTTs, quicker access to more content providers and carriers as well as lower latency and improved experience for local users,” he said.
“We remain committed to enabling West Africa’s digital transformation with investments in fibre infrastructure and data centres,” concluded Adegbiji.