Buy government cloud and AI services together across Africa, under one open agreement

Why this matters

Nigeria alone spends about $850 million a year on cloud and hosting services abroad. What investors in African data centres lack is a buyer that commits for years. The $1 billion Microsoft and G42 project in Kenya stalled because the government could not commit to renting capacity each year. The site would also have needed a third of the national grid.

Africa has 360 megawatts of data-centre capacity in use, 0.6% of the world total, and power is now the main limit. Only 5% of African AI practitioners have the computing power they need. Cassava Technologies and the chipmaker Nvidia plan 12,000 AI chips across Egypt, Kenya, Morocco and Nigeria. One public buyer across many countries would give such investors a customer. In return, governments could set terms on price and access.

The tool for this is a framework agreement. It sets prices and terms once, and each government then places its own orders under it without a new tender. Development banks can guarantee the long leases, which lowers the risk for investors and the price for governments.

Four levels of action

1. 1

   What Africa asks of the world

   The UN's proposed Global Fund for AI should buy computing power through joint regional purchases, with the machines housed in the regions they serve. It should also accept the African agreement's terms as eligible for its money.

   Who

   UN member states negotiating the fund during the current Assembly session, and its future board

   When

   Second Global Dialogue on AI Governance, New York, 3 and 4 May 2027

2. 2

   What the African Union does

   The AU Commission and Smart Africa write model terms on hosting, price, data and power. Smart Africa is the alliance of African governments for digital development whose founding charter AU leaders endorsed in 2014. Afreximbank, the African trade bank, and the African Development Bank guarantee the long leases. The terms apply the Continental AI Strategy of 2024 and the AU Data Policy Framework of 2022.

   Who

   The AU Commission and Smart Africa, with Afreximbank and the African Development Bank

   When

   Model terms by March 2027; first joint tender by September 2027

3. 3

   What regional groups do

   Tenders are split into lots for the Economic Community of West African States (ECOWAS), the East African Community and the Southern African Development Community. Each data centre then serves buyers on one power grid and under one set of data rules. Mali, Burkina Faso and Niger are suspended from the AU and have left ECOWAS. They can buy directly on the published terms, and join a lot when their suspension ends.

   Who

   Ministers of digital affairs in ECOWAS, the East African Community and the Southern African Development Community

   When

   Lead buyer and grid-checked site for each lot by June 2027

4. 4

   Which country goes first, and why

   Nigeria goes first. Its National Digital Cloud Policy, unveiled on 17 August 2026, already requires government bodies to buy together through a national digital marketplace. It aims to attract $250 million of private investment within 12 months.

   Who

   Nigeria's Ministry of Communications, Innovation and Digital Economy

   When

   Publish federal demand and marketplace terms by January 2027; open them to other governments for the first joint tender in September 2027

Before another country can do this

• A data protection law in force, with a regulator that works.
• Published figures on what the government spends each year on cloud and hosting.
• Grid capacity confirmed by the power utility before leases are sized.
• A procurement law that allows the government to join a framework agreement.
• Money committed up front, with a deposit.

What does not carry over from the first country

• Nigeria's size: about $850 million a year of demand can attract investment on its own.
• A single federal rule that obliges every Nigerian ministry to use the marketplace.

Who else is ready

Has this worked before?

In March 2021 the African Vaccine Acquisition Trust signed for up to 220 million Johnson & Johnson doses on behalf of African governments. By May 2021 only five countries had ordered and paid the 15% deposit, and 21 had shown no interest. That put the deal at risk. A group of countries buys well only if its members commit money up front. Source (opens in a new tab)

Health Policy Watch: slow orders under the African vaccine deal

First steps

1. African Unionthe AU Commission and Smart Africa publish draft model terms by March 2027. Afreximbank and the African Development Bank state by June 2027 what lease guarantee they would offer.
2. Regional groupsdigital ministers in ECOWAS, the East African Community and the Southern African Development Community each name a lead buyer and a grid-checked site for their lot by June 2027.
3. Nigeriathe Ministry of Communications, Innovation and Digital Economy publishes federal demand and marketplace terms by January 2027, and opens them to other governments for the first joint tender in September 2027.

Who acts, and with what

Who leads

The AU Commission and Smart Africa, with Nigeria as the first country

Instrument

A continental framework agreement with regional lots and common terms on hosting, price, data and power

How progress is checked

A first joint tender with at least three governments by September 2027

Signal to change course

Nigeria's marketplace stays national, and other governments sign separate deals

What stands in the way

Procurement laws differ, and some ministries already hold contracts. Governments may not commit money up front, as happened with vaccines in 2021. Large providers may prefer to negotiate one country at a time.

Cost and money

Running the agreement is an administrative cost for the AU Commission and Smart Africa that has not been estimated. The size of the bank guarantee is not yet known. Nigeria's spending on foreign cloud services alone is about $850 million a year.

Who else contributes

What each audience can do