Big Tech and Africa’s telcos chase AI innovations

African telecom giants like Orange, MTN, and Airtel partner with Big Tech to drive AI innovations through data centers and language models.

In the heart of Africa’s bustling telecom sector, giants like Orange, MTN, and Airtel are hustling to harness the AI wave, forging alliances with Silicon Valley behemoths and pouring millions into data centers and language models. It’s a high-stakes scramble to convert global hype into tangible African business solutions, amid a continent hungry for digital transformation.

The global AI boom has unfolded at lightning speed. Companies like OpenAI, Anthropic, DeepSeek, and Mistral AI have watched their valuations skyrocket as investors pour billions into generative tools poised to reshape industries from healthcare to finance. In Africa, where mobile penetration is soaring but infrastructure lags, telecom operators see AI not just as a buzzword but as a lifeline for growth. With populations young and tech-savvy, the continent’s telcos are betting big on AI to optimize networks, personalize services, and unlock new revenue streams.

The Rush for AI Infrastructure

African telecoms are ramping up investments in data centers to support AI’s voracious demand for computing power. Airtel Nigeria, for instance, is sinking $120 million into a 38-megawatt hyperscale facility in Lagos’s Eko Atlantic, designed specifically for AI model training and deployment. The center, slated to go live in 2026, has already received its first shipment of high-performance GPUs, setting it apart from rivals by prioritizing AI compute over traditional cloud storage. This move underscores Airtel’s strategy to cater to massive data processing needs, as CEO Dinesh Balsingh emphasized that “data centres are actually for artificial intelligence.”

Not to be outdone, MTN Group is negotiating with U.S. and European firms to build AI-dedicated data centers across its 16 African markets. The South African powerhouse aims to finalize deals by year’s end, focusing on countries with surging AI demand. MTN’s approach involves constructing facilities, onboarding AI providers, and leasing capacity to businesses and governments. Earlier this year, MTN unveiled a $255 million prefabricated data center in Nigeria, touted as West Africa’s largest for commercial use, to bolster cloud services and enterprise needs.

Orange, the French telecom with a strong African footprint, is also diving in. It’s deepening ties with OpenAI to integrate African languages into AI models, deploying new models like gpt-oss-120b for enhanced data security and sovereign infrastructure. These efforts align with a broader push: as Big Tech invests over $320 billion globally in AI next year, Africa risks falling behind without such builds.

Forging Alliances with Big Tech

Partnerships are the linchpin of this AI chase. MTN has expanded its collaboration with Microsoft to deliver AI-powered learning and productivity tools to millions across Africa. This includes integrating Microsoft 365 with Azure cloud services, targeting consumers with affordable, AI-driven features like personalized education and workflow enhancements. “AI is no longer just an enabler—it’s the engine redefining business,” said MTN’s chief technology officer Mazen Mroué.

Similarly, Cassava Technologies, a pan-African firm, has teamed up with Nvidia to launch the continent’s first AI Multi-Model Exchange, bridging global innovation with local ambitions. This platform allows mobile operators to offer AI services to subscribers, fostering homegrown development. The GSMA, alongside Africa’s leading telcos, is uniting with the AI ecosystem to accelerate inclusive solutions, addressing everything from agriculture to healthcare.

Microsoft’s ventures extend further: a geothermal-powered data center in Kenya with Abu Dhabi-based G42 highlights sustainable AI infrastructure tailored to Africa’s energy challenges. These tie-ups reflect a strategic pivot, where African telcos leverage Big Tech’s expertise to leapfrog technological gaps.

Tailoring AI for African Realities

Innovation isn’t just about hardware; it’s about relevance. Orange’s work with OpenAI focuses on African languages, ensuring AI tools speak to local users—vital in a continent with over 2,000 dialects. MTN is using AI to optimize network traffic in Nigeria under its “Genova” program, with plans for a wider rollout to improve service delivery.

Startups are joining the fray, reshaping sectors with “homemade” digital tech. In South Africa, platforms like WeBuyCars employ AI for customer interactions and pricing, blending machine learning with real-world needs. Such applications promise to boost efficiency in underserved areas, from rural broadband expansion to AI-driven financial services.

Challenges and the Road Ahead

Yet, hurdles loom large. Africa needs 1,000 MW of data center capacity and 700 new facilities to catch up, per estimates. Power shortages, skills deficits, and regulatory hurdles could slow progress. As McKinsey notes, telcos must prioritize mobile broadband in rural zones to build a foundation for AI.

Despite this, optimism abounds. With Big Tech’s muscle and local ingenuity, African telcos could transform economies, creating jobs and fostering innovation. As the EU-AU Summit spotlights AI cooperation, the continent stands at a pivotal juncture—poised to turn promise into prosperity.