Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Cloud

Africa Data Centres to expand with $112M funding from RMB

Article Image
Africa Data Centres (ADC), a business of the Cassava Technologies group, plans to expand its data center capacity to meet the growing demand for cloud computing services in South Africa, using a R2 billion (US$112 million) financing solution arranged by Rand Merchant Bank (RMB).

ADC said that RMB acted as the coordinator, initial mandated lead arranger and bookrunner on the R2 billion facility, which was structured by the bank to take into account the current strategic objectives of Africa Data Centres.

"This funding is a significant milestone in the growth of Africa Data Centres. It underscores our commitment to growth and our confidence in the future of the South African data centre market. The additional funding will allow us to support the digital transformation journeys of our customers," Hardy Pemhiwa, president and Group CEO of Cassava Technologies, said in a statement.

Africa Data Centres operates a network of hyper scale and edge data centers across Southern, East and West Africa.

The financing will enable ADC to expand its hyperscale data center capacity in South Africa by an additional 20MW, enabling it to provide the highest standard of interconnected, carrier and cloud-neutral data center facilities.

"The data centre space presents a significant digital infrastructure opportunity, as there is currently a large deficit of supply versus demand. With the exponential growth in demand for data centre capacity in Africa, we are proud to partner with Africa Data Centres as they facilitate digital transformation across the continent. We see this funding as part of RMB's mandate of financing the development of a sustainable digital economy in South Africa," Nana Phiri, head of corporate client group at RMB, said in a statement.

Data center expansion across Africa

ADC has been growing its business in Africa, and in May 2023, it announced it would start construction on a new data center in Accra, Ghana, and also formed a strategic partnership with The London Internet Exchange (LINX) to explore opportunities in current and new markets across Africa.

Africa Data Centres will use the $112 million financing to expand its hyperscale data center capacity in South Africa by an additional 20MW.   (Source: Africa Data Centres)
Africa Data Centres will use the $112 million financing to expand its hyperscale data center capacity in South Africa by an additional 20MW.
(Source: Africa Data Centres)

In January 2023, ADC broke ground on new facilities in Nairobi, Kenya, and Cape Town, South Africa.

This followed previous expansions in South Africa and Ghana as the group moved forward with plans for data center builds in Abidjan, Lagos, Cairo and Casablanca.

In April 2023, its parent company, Cassava Technologies, pledged to invest $249 million in South Africa through its business units: Liquid Intelligent Technologies, Africa Data Centres and Distributed Power Africa.

Meanwhile, competitors like Raxio are also expanding across Africa.

Related posts:

*Top image source: Africa Data Centres.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Vodacom Tanzania unveils Digital Accelerator Program winners

Mobile operator Vodacom Tanzania has announced the season three winners of its Digital Accelerator Program.

Story

AI's potential in African agriculture, energy and climate action GSMA

A new GSMA report examines the huge potential for artificial intelligence to support Africa's socio-economic growth in areas including agriculture, energy and climate action.

More Innovation hub

Latest video

More videos

Guest Perspectives

Story

Leadership Lessons: Networking towards career advancement

By Nollie Maoto

Nollie Maoto, First Rand Group's compliance chief data and analytics officer and Africa Tech Festival Leadership Council member, reflects on the importance of networking for career growth especially for African women in data analytics.

Story

Leadership Lessons: The importance of mentorship for career growth

By Nollie Maoto

Nollie Maoto, First Rand Group's compliance chief data and analytics officer and Africa Tech Festival Leadership Council member, reflects on the importance of mentorship for career growth for African women in data analytics.

More Guest Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Cyber Revolution Summit
August 9, 2024
Gaborone, Botswana
Africa Tech Festival 2024
November 12-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Follow us on X

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002