Africa Data Centres, a prominent player in the data centre sector, has successfully obtained a substantial investment of approximately $108.9 million. This infusion of capital is earmarked for the enhancement of its data centre capabilities, with the aim of catering to the surging demand for cloud computing services within South Africa.
The procurement of these funds was expertly orchestrated through a tailor-made financial arrangement put together by Rand Merchant Bank (RMB).
Hardy Pemhiwa, who holds the position of President & Group CEO at Cassava Technologies, Africa Data Centres’ parent company, expressed his enthusiasm regarding this financial achievement. He emphasized that the acquisition of these funds marks a pivotal point in the company’s expansion trajectory.
Pemhiwa further elaborated on the strategic importance of this funding, noting that it reaffirms the company’s dedication to scaling up operations and its optimism about the prospects of the South African data centre industry. The additional resources will be instrumental in facilitating the digital transformation endeavors of the company’s clientele. He concluded by underscoring the integral role of data centres in realizing the company’s aspiration for a seamlessly interconnected African continent, which ensures that no individual is left behind in the digital revolution.
Rand Merchant Bank (RMB) played a multifaceted role in the financial deal for Africa Data Centres, serving as the Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the funding facility. RMB’s involvement was crucial in structuring the facility, ensuring that it aligned seamlessly with the strategic goals of Africa Data Centres.
Africa Data Centres boasts a vast network of state-of-the-art hyper-scale and edge data centres strategically located throughout Southern, East, and West Africa. The fresh injection of funds is set to propel the company’s growth, enabling it to expedite the expansion of its hyper-scale data centre capacity by an additional 20 megawatts (MW). This expansion is a strategic move to solidify Africa Data Centres’ status as a dominant force in the African data centre market.
The financing will bolster Africa Data Centres’ ability to deliver top-tier interconnected, carrier, and cloud-neutral data centre facilities. By doing so, Africa Data Centres will enhance its offerings, providing robust infrastructure that meets the high standards demanded by clients in the region. This development is expected to further empower Africa Data Centres to meet the evolving needs of businesses requiring reliable and secure data storage and management solutions on the African continent.
Nana Phiri, who leads the corporate client group at Rand Merchant Bank (RMB), commented on the current landscape of the data centre industry, highlighting it as a substantial opportunity within the digital infrastructure sector. He pointed out that there is a pronounced imbalance, with the supply of data centre capacity falling short of the burgeoning demand. This gap presents a critical area for development and investment.
With the rapid escalation in the need for data centre services across Africa, RMB takes pride in its strategic partnership with Africa Data Centres. This collaboration is seen as a key driver in supporting the continent’s digital transformation initiatives. Africa Data Centres plays a pivotal role in this process by providing the necessary infrastructure to accommodate the digital needs of various sectors.
Phiri also emphasized the significance of the funding in the context of RMB’s broader objectives. He views the financial support extended to Africa Data Centres as a reflection of RMB’s commitment to fostering the growth of a resilient and sustainable digital economy in South Africa. By financing such critical infrastructure, RMB is actively contributing to the development of a robust digital ecosystem that can support the country’s economic growth and technological advancement.
