The U.S. Trade and Development Agency (USTDA) has signed an agreement with Nigerian infrastructure development firm INFRAGORA to fund a feasibility study for two data centers in Nigeria, a move aimed at addressing Africa’s acute shortfall in digital infrastructure capacity.

The agreement was announced by the U.S. Mission Nigeria on Wednesday, October 30, 2026, on the sidelines of the 32nd Nigerian Economic Summit (NES32) in Abuja.

The Mission noted that Africa currently hosts less than 2% of the world’s data center capacity.

“Africa has less than 2% of the world’s data center capacity. That needs to change, and Nigeria is the place to start,” the U.S. Mission said in a statement. “U.S. Mission Nigeria is proud to celebrate USTDA’s agreement with INFRAGORA to conduct a feasibility study for two data centers in Nigeria.”

The feasibility study will assess the technical, economic and regulatory requirements for developing the two facilities, which are expected to support Nigeria’s growing demand for cloud computing, data storage and digital services.

The study is a precursor to potential USTDA support for the project’s implementation.

The announcement comes as Nigeria intensifies efforts to position itself as West Africa’s digital economy hub, with recent investments in fiber optic infrastructure, spectrum allocation and data protection regulation. The government has identified data centers as critical to retaining data locally and reducing reliance on foreign hosting.

USTDA, an independent U.S. government agency, funds feasibility studies and pilot projects that support the export of U.S. goods and services and promote sustainable infrastructure development in partner countries. The agency has previously supported projects in Nigeria’s energy, transportation and healthcare sectors.

INFRAGORA, a Nigerian infrastructure development company, focuses on power, transportation and digital infrastructure projects across West Africa. The company has not disclosed the proposed locations or expected capacity of the two data centers.

The agreement is expected to be followed by further announcements on financing and implementation timelines as the feasibility study progresses.