Why Digital Infrastructure Is the New Development Strategy
In the race to build the future, infrastructure is no longer just roads and bridges—it’s fiber optics, cloud platforms, and AI-ready data centers. And while much of the global conversation has centered on traditional tech hubs, some of the most transformative investments are happening far from Silicon Valley.
One of the key voices shaping this space is Obinna Isiadinso, Data Center Investor in Emerging Markets Globally at the International Finance Corporation (IFC), the private sector arm of the World Bank Group. Obinna leads global digital infrastructure investments with a sharp focus on inclusive growth, energy sustainability, and local ownership.
In this conversation, he shares what makes a region ripe for scaled investment, the trends reshaping the sector, and why Africa, Southeast Asia, and Latin America may hold the keys to the next wave of digital opportunity.
You lead global data center investments—what makes a region stand out as ready for scaled digital infrastructure investment?
At the International Finance Corporation (IFC), we are the private sector arm of the World Bank Group, focused on promoting sustainable development by investing in private enterprise in emerging markets. We have a long-standing track record of supporting digital infrastructure—including data centers, fiber networks, towers, and cloud platforms—with the goal of expanding connectivity, enabling digital economies, and fostering inclusive growth across Africa, Asia, Latin America, and beyond. I lead our data center investments in emerging markets globally.
We look at three key variables when considering investing in a data center market: demand signals, infrastructure quality, and the regulatory environment.
First, we assess demand signals from population growth, enterprise digitization, digital adoption, or the presence of hyperscalers and subsea cables.
Second, we look at the quality of infrastructure—reliable and scalable power (especially renewable or low-carbon), robust fiber connectivity, and available land.
Third, we examine the regulatory environment: Is the government creating a business-friendly climate for infrastructure investment? Are permits streamlined? Are data protection and localization laws transparent?
When these elements align, the investment goes far beyond a physical facility—it becomes a catalyst for a region’s digital transformation. For me, this work lives at the intersection of professional mission and personal purpose. With roots in both Africa and the diaspora, I see digital infrastructure as a bridge, one that connects underserved markets to opportunity and communities to the tools they need for economic empowerment and generational resilience.
As demand for AI and cloud accelerates, how is the relationship between compute, energy, and infrastructure evolving—especially in emerging markets?
We’re entering an era where energy is the new currency of compute.
AI workloads are incredibly power-hungry. So, the edge in infrastructure is shifting toward locations that can deliver cheap, clean, and scalable energy—and do it quickly.
In emerging markets, this opens up new pathways. Regions with abundant solar, hydro, or geothermal potential could leapfrog into relevance if they can pair that with fiber, land, and enabling policy.
The opportunity isn’t just to build data centers, it’s to build resilient, future-proof digital ecosystems rooted in sustainability and inclusion.
What key trends are shaping the future of data center development, and how are they influencing your investment lens?
Three big trends are reshaping our world:
AI-First Design: Facilities are being built with AI in mind—higher densities, liquid cooling, and custom silicon. This changes everything from site selection to power procurement.
Power Scarcity: In many developed markets, grid constraints are slowing down builds. This forces investors to look at emerging markets with untapped energy capacity and political will.
Localized Infrastructure: There’s a shift from centralized cloud toward edge computing, sovereign clouds, and localized infrastructure—especially in regions where data residency or latency matters.
These trends push us to think bigger and earlier. We’re investing in regions before the boom, helping shape the landscape from the ground up.
Which regions are you watching most closely right now, and what signals are you seeing that indicate outsized growth potential?
We’re watching Southeast Asia, Latin America, and parts of Africa very closely.
In Southeast Asia, countries like India, Malaysia, the Philippines, and Indonesia are seeing increased cloud growth, subsea cable landings, and rising demand for AI-ready capacity.
Latin America—especially Brazil, Mexico, and Chile—is gaining attention as both a nearshore cloud market and a connectivity hub. Chile, in particular, is emerging as a strategic location due to its political stability, renewable energy capacity, and subsea connectivity along the Pacific coast.
And in Africa, the big shift is happening quietly but powerfully. Markets like Nigeria, Kenya, and Morocco are aligning investment, energy, and digital policy in ways that hint at breakout potential.
The common thread? Digital demand + energy opportunity + policy tailwinds.
Looking ahead, how do you envision the next phase of digital infrastructure unfolding, and what role will connectivity, cloud, and compute play in shaping global economies?
We’re on the brink of a global transformation. The next phase won’t just be about who has the most data—but who has the infrastructure to move, store, and analyze it at scale.
Connectivity is the bloodstream. Without fiber and interconnection, compute is stranded.
Cloud is the operating system for modern economies. Every startup, hospital, and government will need cloud-native tools.
And compute is the engine—especially as AI becomes foundational to productivity, innovation, and security.
Countries that invest in all three—early and ambitiously—will shape the next chapter of global growth. And if we do it right, we won’t just build data centers, we’ll build bridges to economic resilience, job creation, and digital sovereignty.
This is also an inflection point for African and diaspora investors, builders, and thinkers. We have a chance to shape the infrastructure of the future, not just as users, but as owners.
Mr. Isiadinso writes about the global data center sector at The Global Data Center Hub.
by Tony O. Lawson
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