Africa Data Centres Raises $110 million for Expansion.

Africa Data Centres, the largest operator and owner of interconnected, carrier, and cloud-neutral data centre facilities in Africa, has secured $110 million to meet the growing demand for cloud computing services in South Africa.

Why is this important: This development holds significant importance as the continent’s expanding digital infrastructure ecosystem, characterised by the widespread use of fiber-optic broadband and telecom towers, increasing mobile data consumption, a thriving tech sector, and extensive use of cloud computing and social media, is driving significant growth.

In South Africa like other African economies, the increasing demand for digital infrastructure signifies a substantial opportunity compared to the existing supply. Africa Data Centres has a strong presence in Lagos, Nigeria, and Nairobi, Kenya, with ambitious expansion plans for other countries such as Ghana, Togo, and Rwanda sensing the growing opportunity.

The bottom line:The funding round, organised by RMB Private Bank, a division of FirstRand, highlights the important role of financiers focused on Africa in recognising the potential within the rapidly expanding African digital infrastructure sector. The significant capital investment by companies aiming to enter this industry makes smooth execution challenging. However, having investors who grasp the evolving landscape and take a long-term view can make a difference, yielding compounded returns and positive socioeconomic impact.

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