Africa Data Centres, a division of the Cassava Technologies Group, has secured $108.9 million in funding from a consortium of investors to expand its capacity and meet the rising demand for cloud computing services in South Africa. This funding was arranged by Rand Merchant Bank (RMB) through a bespoke financing solution.
Significance of the funding to Africa Data Centres
“This funding is a significant milestone in the growth of Africa Data Centres,” said Hardy Pemhiwa, President & Group CEO of Cassava Technologies. He emphasized that this financial boost underscores their commitment to growth and their confidence in the future of the South African data centre market. “The additional funding will allow us to support our customers’ digital transformation journeys.
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Data centres are key to delivering on our vision of a digitally connected future that leaves no African behind,” Pemhiwa added.
RMB was pivotal as the Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the ZAR2 billion facility. RMB structured the financial package to align with the strategic objectives of Africa Data Centres, which include expanding its market share, enhancing its service offerings, and maintaining high standards of operational excellence.
Africa Data Centre expansion plans
Africa Data Centres operates a network of hyperscale and edge data centres across Southern, East, and West Africa. The R2 billion financing, to be disbursed over the next two years, will enable Africa Data Centres to accelerate its expansion by an additional 20MW of hyperscale data centre capacity.
This expansion will bolster its position as a leading player in the African data centre industry, enabling it to provide top-tier interconnected, carrier-neutral, and cloud-neutral data centre facilities. “The data centre space presents a significant digital infrastructure opportunity, as there is currently a large deficit of supply versus demand,” said Nana Phiri, head of the corporate client group at RMB.
“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 to finance the development of a sustainable digital economy in South Africa.”
Africa’s Digital Infrastructure Boom
This funding and expansion come at a crucial time when Africa’s demand for digital infrastructure is increasing. The additional 20MW capacity will enable Africa Data Centres to support more businesses and services that rely on robust, scalable data infrastructure.
The expansion aligns with the broader vision of fostering a digitally connected Africa, providing the backbone for cloud services, big data analytics, and other critical digital innovations for economic development.
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Africa Data Centres is poised to continue its growth trajectory, leveraging the new funding to enhance its service offerings and infrastructure. This move is expected to attract more international tech companies to the region, further boosting the digital economy.
The company’s commitment to maintaining high standards of operational excellence will also ensure that it remains at the forefront of the African data centre industry.
By expanding its footprint and capacity, Africa Data Centres aims to bridge the gap between supply and demand in the data centre market, providing essential services that support the continent’s digital transformation journey. This funding not only represents a significant financial investment but also a vote of confidence in the potential of Africa’s digital future.