Africa Data Centres, part of the Cassava Technologies group, has secured $110 million in funding to expand its data center colocation and cloud services capacity in South Africa, addressing the burgeoning demand for cloud computing services in the region. The financing was organized by Rand Merchant Bank (RMB).
Hardy Pemhiwa, President & Group CEO of Cassava Technologies, described the funding as a pivotal achievement for Africa Data Centres, reinforcing their growth ambitions and confidence in the South African data center colocation and cloud services market. He emphasized that the additional funds would support the digital transformation journeys of their customers, aligning with their vision of a digitally connected future that includes all Africans.
The $110 million facility, equivalent to ZAR2 billion, was coordinated, arranged, and bookrun by RMB, tailored to align with the strategic goals of Africa Data Centres. This investment would enable Africa Data Centres to accelerate its hyperscale data center capacity by an additional 20MW, bolstering its position as a leading provider of interconnected, carrier-neutral, and cloud-neutral data centre facilities across Africa.
‘Exponential Growth in Demand’
Africa Data Centres currently operates a network of hyperscale and edge data centers spanning Southern, East, and West Africa. This new funding would significantly enhance their ability to meet the increasing demand for data centre capacity on the continent, which is experiencing a substantial supply deficit.
Nana Phiri, Head of the Corporate Client Group at RMB, highlighted the critical digital infrastructure opportunities within the data center sector, given the exponential growth in demand. She expressed pride in partnering with Africa Data Centres, emphasizing the role of the funding in supporting RMB’s mandate to finance the development of a sustainable digital economy in South Africa.
This strategic move by Africa Data Centres not only marks a significant investment in South Africa’s digital infrastructure but also underscores the broader commitment to digital inclusion and economic development across the African continent. The enhanced data center capacity would provide crucial support to businesses and services, driving digital innovation and connectivity in the region.
