A Warning on Data Centres' Viability Amid Naira Woes
Concerns Over Data Centres' Sustainability
At the hyperscalers convergence Africa conference, industry leaders voiced strong concerns, stating that data centres may collapse if the naira continues to weaken. Key issues were highlighted, notably the correlation between dollar-based costs and local currency depreciation.
Impact of Naira Depreciation
Operators warn that, as one industry expert noted, “If you benchmark your costs in dollars and convert to naira, a depreciation of the naira can reduce your revenue by up to 40 percent.” This emphasizes the profound risk the local currency poses to data centre operators.
- Financial stability is at risk.
- Revenue losses could be significant.
- Operators demand urgent action and support.
As discussions at the conference continue, the broader implications on economic trends and investment strategies remain critical.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.