The Ghanaian government’s proposal to construct state-owned power plants has elicited sharply divided opinions from industry stakeholders, economists, and the public, with concerns over fiscal sustainability clashing against calls for greater energy sovereignty and reduced reliance on independent power producers (IPPs).

According to a report by The Business & Financial Times (B&FT), the initiative — aimed at addressing persistent power supply challenges and reducing the country’s heavy dependence on expensive IPPs — has sparked debate over its feasibility, cost implications, and long-term impact on the energy sector.

Proponents argue that state-owned generation would allow Ghana to control critical infrastructure, negotiate better terms for fuel supply, and potentially lower electricity tariffs in the medium to long term. They point to the high cost of IPP power purchase agreements, which have contributed significantly to the sector’s debt burden and frequent load-shedding in the past.

However, critics — including energy analysts and private sector players — warn that the move risks repeating past mistakes of state-led projects that suffered from inefficiency, political interference, and poor maintenance. They question the government’s capacity to fund, manage, and operate large-scale power plants without repeating the financial strain seen in earlier state utilities.

“The idea sounds appealing on paper — energy sovereignty and lower costs — but the track record of state-owned enterprises in Ghana’s power sector raises serious red flags,” said one anonymous industry source quoted in the B&FT report.

Others highlighted the need for transparent procurement, strong governance structures, and clear financing mechanisms to avoid burdening taxpayers.

The discussion comes amid ongoing efforts to stabilize the energy sector following years of debt accumulation, power purchase disputes, and infrastructure deficits. The government has signaled that any state-owned plants would be built with modern technology and potentially involve public-private partnerships (PPPs) to mitigate risks.

For the global Ghanaian diaspora, investors, and international partners, the proposal reflects the Mahama administration’s push for greater control over strategic sectors while balancing fiscal prudence and private sector involvement. The outcome of this debate could shape Ghana’s energy future and influence foreign investment confidence in the power sector.

The Business & Financial Times reports that consultations and feasibility studies are ongoing, with a final decision expected in the coming months.

Source Attribution: Originally reported by The Business & Financial Times (B&FT), January 22, 2026.

Nigeria appears increasingly likely to commission its first true artificial intelligence (AI)–focused data center by 2026.

This marks a significant milestone in West Africa’s digital transformation and strengthening the region’s position in the global technology economy.

According to an in-depth analysis by global crypto exchange and digital infrastructure watcher MEXC, Nigeria’s expanding data center pipeline, combined with rising AI workloads and sustained investor interest, suggests the country is closer than ever to hosting facilities capable of supporting AI at scale—though key challenges remain.

Rapid Growth in Data Infrastructure

Nigeria currently hosts 17 operational data centers, with at least nine additional facilities under construction or in advanced planning stages. Among the most anticipated projects is Equinix’s LG3 carrier-neutral data center on Victoria Island in Lagos, a 1-megawatt facility scheduled for commissioning in the first quarter of 2026.

Installed data center capacity in Nigeria is estimated at 65 to 86 megawatts, but industry projections cited by MEXC indicate this could exceed 400 megawatts within the next three to five years, driven by demand from cloud service providers, fintech firms, telecom operators, and AI-driven enterprises.

A Verraki report published in December 2025 values Nigeria’s data center market at approximately $1.4 billion, with projections pointing to $2.7 billion by 2035, reflecting a compound annual growth rate of about 7%. Analysts note that Nigeria’s scale and strategic location position it as a digital gateway not only for its domestic market but also for the wider West African sub-region, including Ghana.

Why AI Changes the Stakes

MEXC’s analysis highlights that AI workloads fundamentally alter data center requirements. Traditional enterprise facilities typically operate at 10–15 kilowatts per rack, while AI-focused deployments—especially those supporting large language models and GPU clusters—can demand 60–100 kilowatts per rack, often requiring liquid cooling and highly resilient power infrastructure.

“An AI data center is fundamentally about high rack density,” said Krish Ranganath, Regional Executive for West Africa at Africa Data Centers, a Cassava Technologies subsidiary. He noted that while entry-level AI workloads can run on lower densities, truly AI-native facilities require long-term power certainty and scalable design.

Construction timelines remain a constraint, with most high-capacity data centers taking 16 to 20 months to complete, excluding power connections and commissioning.

Economic and Employment Impact

Beyond technology, the economic case for AI data centers is compelling. MEXC cites Verraki modelling showing that a $10 million, 1-megawatt Tier III data center can generate $17 million in economic output during construction, rising to over $39 million over ten years when operational spending is included.

Employment benefits are also substantial. A single 1-megawatt facility can support around 700 construction jobs and 20–30 operational roles annually, contributing to more than 1,600 cumulative jobs over a decade—a key consideration for governments seeking skilled technical employment growth.

Major Investments Signal Confidence

Global and regional operators are already committing significant capital. Open Access Data Centers has established facilities in Lagos following a $500 million Africa-wide investment, while Equinix announced a $390 million commitment to the continent over five years.

Telecom giants are also entering the space. MTN Nigeria is developing a 1,500-rack Tier IV facility, and Airtel Africa’s Nxtra project—a $120 million investment designed specifically for AI compute—is expected to go live in Nigeria by early 2026, with high-performance GPUs already delivered in late 2025.

Kasi Cloud Emerges as a Strong Contender

The clearest signal that Nigeria could host its first AI-native data center by 2026 is Kasi Cloud’s LOS1 hyperscale campus in Lekki, Lagos. Backed by a $250 million investment and supported by the Nigeria Sovereign Investment Authority, the facility is designed to handle extreme AI power and cooling demands.

Spanning 4.2 hectares with up to 172,000 square feet of white space, the campus can host 3,000–4,000 racks at full build-out. Its dedicated substation offers up to 100 megawatts of power capacity, with rack densities scaling from 8 kilowatts to 100 kilowatts per rack—levels typically associated with liquid-cooled AI systems.

According to Alex Tsado, co-founder of Ahura AI and a founding member of the Alliance for Africa’s Intelligence (Alliance4AI), the facility has already opened its doors and is optimized for AI GPUs. Kasi Cloud is partnering with UduTech, a GPU cloud platform, to provide affordable AI compute services tailored to African startups and researchers.

Remaining Constraints

Despite the momentum, MEXC cautions that challenges persist. Most specialized equipment—including GPUs and advanced cooling systems—is imported, exposing projects to currency volatility and supply chain risks. Reliable, high-quality power remains the most critical constraint, alongside dense, low-latency network connectivity.

Still, transitional “AI-ready” facilities, such as Rack Centre’s 12-megawatt LGS2 site launched in 2025, and pan-African GPU initiatives involving NVIDIA and Cassava Technologies, are helping bridge the compute gap for African innovators.

Outlook for 2026

While Nigeria may not instantly become a global AI hyperscale hub, MEXC concludes that at least one AI-focused data center is likely to be fully operational by late 2026, with projects such as Kasi Cloud and Airtel Nxtra leading the way. For Ghana and the wider region, Nigeria’s progress underscores a broader West African shift toward high-value digital infrastructure—one that could reshape economic competitiveness across the continent.

Attribution: This report is based on analysis and data published by MEXC, with additional industry commentary cited within the original MEXC story.

Ghana has taken a major step to strengthen local value addition in its extractive sector with the signing of a historic gold refining agreement between the Ghana Gold Board (GoldBod) and Gold Coast Refinery in Accra.

The agreement was formally signed on Tuesday, January 20, 2026, at GoldBod’s headquarters in the former Bank of Ghana building. According to details shared with journalists by GoldBod, the deal marks the first time the Government of Ghana has entered into a formal gold refining agreement with a locally based refinery, a move officials say could significantly reshape the country’s gold value chain.

Keeping Refining Value in Ghana

For decades, Ghana—Africa’s largest gold producer—has exported the bulk of its gold in raw or semi-processed form, with refining largely carried out in hubs such as Dubai, Switzerland, India and Hong Kong. Industry analysts estimate that this practice costs Ghana millions of dollars annually in refining charges and associated fees, revenue that now stands to be retained within the domestic economy.

Under the new agreement, Gold Coast Refinery will refine up to one metric ton of gold per week, a development GoldBod says will revive a facility that had remained largely dormant for nearly nine years.

“This agreement represents a decisive shift from exporting raw value to building a competitive domestic gold refining ecosystem,” a GoldBod official told reporters, noting that the move aligns with broader government efforts to maximize returns from Ghana’s mineral wealth.

Jobs, Taxes and the 24-Hour Economy

The refinery is expected to operate 24 hours a day, in line with the government’s 24-Hour Economy policy. GoldBod projects that this will generate several direct and indirect jobs, spanning refining, logistics, security, engineering and ancillary services.

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Increased operations are also expected to translate into higher tax revenues, while reducing long-standing losses associated with the undervaluation of raw gold exports. Analysts have repeatedly flagged purity losses and inaccurate valuation as structural weaknesses in Ghana’s gold export regime.

Supporting Jewelry and Fabrication Industries

A notable feature of the agreement is the focus on accurately determining the silver content in Ghana’s gold. GoldBod says this will make it possible to retain silver locally, supporting the growth of Ghana’s jewelry and fabrication industries, which often rely on imported refined inputs despite the country’s mineral endowment.

The agreement also guarantees the availability of refined gold and silver for local jewelers, a move industry players say could help scale up artisanal and small-scale manufacturing of ornaments for both local and export markets.

Strategic Stake and International Standards

As part of the deal, GoldBod holds a 15% free carried interest in Gold Coast Refinery on behalf of the Republic of Ghana, positioning the state to benefit from future dividends without additional capital investment.

Crucially, the partnership is expected to fast-track Ghana’s push toward establishing an LBMA-certified refinery, a status that would significantly enhance the credibility, pricing and global acceptance of Ghanaian gold on international markets.

Experts note that LBMA certification often attracts premium pricing and reduces transaction frictions, strengthening a country’s standing in the global bullion trade.

A Turning Point for Ghana’s Gold Sector

Ghana produced more than four million ounces of gold annually in recent years, according to official figures, making reforms in refining and valuation a high-stakes issue for fiscal stability and foreign exchange earnings.

With this agreement, government officials say Ghana is signaling a clear intent to move beyond raw exports toward greater beneficiation, transparency and long-term value creation in its gold sector.

The Minister for Finance, Cassiel Ato Forson, was Special Guest of Honor at the signing event. The event was attended by officials from the mining and finance sectors, as well as representatives of local and international media.