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

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)

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.

*Top image source: Africa Data Centres.

— Paula Gilbert, Editor, Connecting Africa