Africa Data Centres gets $300m boost from US development agency
The US International Development Finance Corporation (DFC) will pump $300 million into Liquid Telecom’s Africa Data Centres’ (ADC) expansion efforts in South Africa and Kenya.
This funding will also enable ADC to enter into new markets through the development, construction and operation of data centres in DFC-eligible African countries, increasing connectivity and supporting economic development.
The Washington-based DFC is America’s development bank, which partners with the private sector to finance solutions to the most critical challenges facing the developing world.
ADC is the data storage arm of Johannesburg-based Liquid Telecom, which is controlled by Zimbabwean telecoms billionaire Strive Masiyiwa’s Econet Group.
The financing is part a current data centre push in Africa, with various international companies announcing plans to fund the expansion of continent’s cloud computing industry. This sector has seen a growing interest from global cloud service providers, including AWS, Microsoft and Huawei, over the past five years.
It is understood that the DFC’s cash injection will allow ADC to expand its facilities in South Africa and Kenya, as well as construct new facilities in Egypt, Ghana, and Morocco.
Currently Africa’s largest network of interconnected, carrier- and cloud-neutral data centre facilities, ADC operates nine data centres, across six African countries.
The latest $300 million boost comes on the back of a $307 million investment from ADC’s shareholders in October, clearly stating the organisation’s intention to be a major player in Africa’s fast-growing data storage market.
Reportlinker.com’s recent report – “Data Center Market in Africa - Industry Outlook and Forecast 2020-2025" – finds that the continent’s data centre market size is expected to surpass $3 billion by 2025, growing at a CAGR of over 12% during the forecast period.
According to the research, the increasing demand for cloud-based services and modular data centre solutions among enterprises, especially SMEs and government agencies, is set to drive the African market. It is estimated that more than 70% of organisations operating in the region will migrate to the cloud by 2025.