mtn group is It is pushing ahead with plans to build AI-enabled data centers in South Africa and Nigeria as part of a broader bet that the continent's digital infrastructure needs are set to grow exponentially.
In its annual results to December 2025, the group said it had completed a comprehensive market assessment in the first quarter of 2025 and confirmed South Africa and Nigeria as priority markets for greenfield data center development.
After what it described as a rigorous assessment process, MTN has shortlisted key strategic partners with whom it is negotiating co-investment structures and operating models. The group did not name the partners or disclose financial details.
MTN said it is entering 2026 with a clear execution path aimed at building a competitive and scalable data center platform, which it sees as a huge opportunity in Africa.
“The industry-wide shift towards large-scale AI compute infrastructure – driven by rapid growth in model training, inference and data-intensive workloads – underpins the substantial opportunity for MTN Digital Infrastructure Africa,” the group said.
The data center push is one of three strategic pillars under MTN's new Ambition 2030 strategy, which reorganizes the business around three platforms: connectivity, fintech and digital infrastructure. Within digital infrastructure, the group has set three priorities: advancing fiber networks, expanding AI-enabled data centers and unlocking the value of towers.
Biobab delivers
MTN's existing digital infrastructure business, housed under the Biobab brand, delivered resilient results in the 2025 financial year, despite some headwinds. The platform generated consolidated external revenue of R5.6 billion EBITDA Earnings before interest, taxes, depreciation and amortization – rose 38.8% in constant currency to R1.8-billion, supported by an improved revenue mix and cost-optimization efforts.
The fiber segment led the growth, delivering external revenue growth of 41.2% in constant currency. This was driven by new fixed-connectivity infrastructure contracts, revenue contribution from newly launched Fibercos, ongoing network expansion and improved service delivery. MTN said it continued to accelerate fiber roll-out across its region, including progress on the East African corridor.
Reading: MTN South Africa struggles due to increasing competition in prepaid market
A notable milestone in the fourth quarter of 2025 was the activation of the 2Africa West subsea route, providing high-speed, low latency capacity across the entire West African coastline.
MTN Digital Infrastructure also secured a 15-year license authorizing the manufacture, installation and operation of electronic communications systems through its South Sudan subsidiary in the fourth quarter.
The communications platforms segment – which handles international and transit voice traffic – was a drag, with external revenues declining 24.3% in constant currency due to lower traffic volumes. However, MTN said Biobab secured new strategic partnerships during the year and did substantial work to increase operational efficiency and drive a more sustainable business model and margin enhancement.
IHS acquisition
The data center ambitions sit alongside MTN's proposed acquisition of the approximately 75% of IHS Holdings that it does not already own, announced on 20 February 2026. The transaction is structured such that MTN will acquire only the African operations of IHS.
MTN said the deal will position its digital infrastructure platform to unlock value from towers through the provision of efficient and reliable passive infrastructure for MTN operations and third parties. The Group believes that the acquisition will position it as the largest and most complete digital infrastructure provider in Africa.
Reading: West Africa marks major milestone for MTN Group
MTN's data center push comes amid a wave of investment in African digital infrastructure. Microsoft has contributed R5.4 billion to data center development in South Africa, while a number of hyperscalers and colocation providers are expanding capacity on the continent.
The group will provide more details of its digital infrastructure strategy and capital allocation priorities at a capital markets day planned for June 2026. – (c) 2026 NewsCentral Media
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