The U.S. International Development Finance Corporation (DFC) has announced the first disbursement of US$83 million of its strategic investment loan worth US$300 million to Africa Data Centres.The $300 million loan will aid the expansion and operation of data centres in South Africa, Kenya, Egypt, Ghana, Ivory Coast, and other DFC-eligible countries.
The first disbursement goes to the Cassava Technologies company in South Africa. The company will put US$83 million toward expanding the data centres in South Africa. Subsequent disbursements will be used to realize the expansion of the company’s footprint in other DFC-eligible African countries.
The announcement comes when Africa sees a rise in data centre projects.
Africa Data Centres intends to build data centres in ten of Africa’s largest economic capitals, including Abidjan, Accra, Lagos, Cairo, and Casablanca, and existing data centers in Johannesburg and Cape Town will be expanded.
RelatedPosts
What is DFC saying?
IN THE PRESS RELEASE, DFC CEO Scott Nathan said, “DFC’s investment in Africa Data Centres helps expand critical information and communications technology infrastructure in South Africa, Kenya, and other countries in the region. Building secure, trusted information technology networks will help enable development and economic growth throughout Africa.”
Africa Data Centre CEO Tesh Durvasula said, “Africa Data Centres is pleased to work with DFC to expand our facilities and network throughout Africa. This financing supports our efforts to build scaleable, efficient, resilient, secure, and sustainable infrastructure that supports Africa’s adoption of world-class cloud services. The increasing demand for cloud and other digital technologies on the continent has directly increased the demand for African data to reside within the continent. This means Africa needs more data centres. We are pleased that our data centre expansion programme in South Africa funded by DFC will cater to the growing demand in the country.”
Read also: Google’s Africa Investment Fund Invests in Lori Systems
A statement from Cassava Technologies President and CEO Hardy Pemhiwa said; “The investment by DFC follows ADC’s recent announcement of a US$50 million investment by C5 Capital into Cassava Technologies and a partnership to build Cyber Security Operations Centres across six markets in Africa.”
Africa Data Centres
Africa Data Centres are Africa’s first network of an interconnected, carrier, and cloud-neutral data centre facilities, providing the foundations for Africa’s digital transformation.
Strategically located at major regional trade hubs, their world-class facilities provide a home for critical data and access to a hub of leading cloud providers, carriers, and enterprises.
Africa Data Centres’ footprint
Africa Data Centres are designed, built, and operated to the highest standards demanded by today’s leading cloud providers, carriers, and enterprises, regardless of the scale of requirement.
The company has announced a US$500 million goal to build 10 data centres across 10 African countries over the next two years.
In June 2022, ADC expanded its reach across West Africa by building a 30MW data facility in Ghana’s capital, Accra.
ADC also announced it would construct a second data centre in Cape Town, South Africa.
ADC is developing data centres in Nairobi, Kenya; Lagos, Nigeria, Lomé, Togo, and the Samrand and Midrand areas of Johannesburg and the Diep River area of Cape Town, South Africa.
The new 20MW facility will cover 15,000 square meters (161,450 sqft) in eight data halls. The company is currently in the initial design phase, with work set to start on site in the last quarter of 2022. Completion is scheduled for the end of 2023.
ADC’s existing Cape Town facility offers 2,700 sqm (29,000 sq ft) of IT space across three data halls. At full future built out, the site will offer 6,000 sqm (64,580 sq ft) and 25MW.
The company plans to double its footprint and build facilities in places like Morocco, Tunisia, and Egypt.
The U.S. International Development Finance Corporation (DFC)
The DFC is a development finance institution of the United States focused on investing in development projects primarily in lower- and middle-income countries.
It was formed in 2019 by merging the Overseas Private Investment Corporation (OPIC) with the Development Credit Authority (DCA) of the United States Agency for International Development (USAID), as well as with several smaller offices and funds.
Nigeria’s Telecom Sector Hits $57.79 million In Foreign Direct Investment
Observations
Africa faces an Information and Communications Technology (ICT) infrastructure deficit that impedes economic development throughout the continent.
DFC’s financial support seeks to promote digital transformation in Africa. The DFC said the loan was ‘a key investment’ advancing the Biden Administration’s Partnership for Global Infrastructure and Investment (PGII). PGII is a collaborative effort by the G7 to fund infrastructure projects in developing nations; it is considered to be the bloc’s response to China’s Belt and Road Initiative. The initiative was created in 2021.
Africa Data Centres will continue to expand its secure data centre facilities across Africa. This expansion will unlock approximately 31.3 megawatts of IT load capacity in the next three years and create over 100 direct formal jobs.