Africa Data Centres draws $83 million to expand South African footprint

Africa Data Centres has requested a disbursement of funding from a larger grant awarded by the International Development Finance Corporation (DFC) in 2021. The total award was for $300 million USD; Africa Data Centres has requested $83 million be released so that they can expand existing data centres in South Africa.

Currently, Africa Data Centres owns and operates two data centres in Johannesburg, and one in Cape Town, South Africa. The decision to devote a portion of funds to expand their existing footprint is in response to increased demand, as well as the possibility of data localisation regulations to come.

In 2021, South African legislators drafted a Cloud and Data Policy proposal to provide a foundation for data privacy, security of personal information, and accessibility across the country. The proposed legislation also included a provision for data localisation, stating that data generated in South Africa is the property of the country, regardless of where technology companies are headquartered.

Should data localisation efforts pass, the demand for in-country services will increase even further. Tesh Durvasula, CEO of Africa Data Centres, noted that, “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 that 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.”

Africa Data Centres also owns and operates facilities in Nairobi and Lagos. Future funds from the DFC grant will be applied to expand these data centres. Additionally, the company has plans to build new facilities across the continent in areas including Abidjan, Accra, Cairo and Casablanca.

The company is a division of Cassava Technologies, an African communications company and builder of the continent’s largest fibre network, spanning over 73,000 km. Recently, C5 Capital invested $50 million USD in Cassava to partner on six Cyber Security Operations Centres in the region.

Hardy Pemihwa, President and CEO of Cassava, said, “Through these investments, Cassava Technologies is building Africa’s digital infrastructure to enable accelerated economic development and ensure a digitally connected future that leaves no African behind.”

“Africa has unrealised economic potential that will be unlocked by this investment from DFC. We look forward to working closely with DFC to overcome Africa’s digital infrastructure deficit and accelerate the adoption of cloud services and digital applications across all industries, further making the continent a competitive destination for international investment,” he concluded.