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South African Data Centre Expansion: A Leap Towards Digital Transformation

Server racks in server room data center

Africa Data Centres, a subsidiary of Cassava Technologies, has secured crucial funding to expand its data centre capacity in South Africa. This financial boost, arranged by Rand Merchant Bank (RMB), will enable the company to meet the growing demand for cloud computing services in the region. The financing agreement reflects Africa Data Centres’ strong financial position and its dedication to driving digital transformation in South Africa.

Hardy Pemhiwa, President and Group CEO of Cassava Technologies, emphasized the significance of this funding. He stated that it marks a crucial milestone in Africa Data Centres’ growth trajectory and demonstrates their confidence in the future of South Africa’s data centre market. Pemhiwa highlighted that the additional funding would support their customers’ digital transformation journeys, aligning with their vision of a digitally connected future that includes all Africans.

RMB played a pivotal role in this financial arrangement, acting as the Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the ZAR2 billion facility. The bank structured the facility to align with Africa Data Centres’ current strategic objectives, showcasing a tailored approach to meet the company’s specific needs.

Africa Data Centres operates an extensive network of hyperscale and edge data centres across Southern, East, and West Africa. The R2 billion financing will allow the company to accelerate its expansion plans, adding an additional 20MW of hyperscale data centre capacity. This expansion will further solidify Africa Data Centres’ position as a leading player in the African data centre space, enabling them to provide top-tier interconnected, carrier and cloud-neutral data centre facilities.

Nana Phiri, head of the corporate client group at RMB, highlighted the significant opportunity in the data centre space. Phiri noted that there is currently a substantial deficit in supply compared to demand. With the exponential growth in demand for data centre capacity across Africa, RMB is proud to partner with Africa Data Centres in facilitating digital transformation across the continent. The bank views this funding as part of its mandate to finance the development of a sustainable digital economy in South Africa.

The expansion of data centre capacity is crucial for supporting the increasing reliance on cloud computing services. As businesses and individuals alike continue to embrace digital solutions, the need for robust and scalable data infrastructure becomes paramount. Africa Data Centres’ expansion will play a vital role in meeting this growing demand and supporting the digital ecosystem in South Africa and beyond.

This investment in data centre infrastructure is expected to have far-reaching effects on South Africa’s digital landscape. It will enhance the country’s ability to host and process data locally, improving access to digital services and potentially attracting more tech companies to the region. The expansion could also contribute to job creation in the technology sector and support the growth of local businesses that rely on cloud services.

As Africa continues its digital transformation journey, investments in data centre capacity like this one by Africa Data Centres are essential. They provide the foundation for innovation, economic growth, and improved digital services across the continent. With this funding, Africa Data Centres is poised to play a significant role in shaping the future of South Africa’s digital infrastructure and supporting the country’s ambitions to become a leading digital economy in Africa.



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