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A joint venture formed by Digital Realty (DLR) and Pembani Remgro Infrastructure Fund announced this week that they acquired Medallion Data Centres, a leading colocation and interconnection provider based in Nigeria.

Medallion operates two data centres, one in Lagos and the other in the capital Abuja. As part of the transaction, the joint venture is also acquiring a land parcel adjacent to the Lagos data centre to help provide a near-term expansion capacity.  

Medallion's Lagos data centre is said to be the leading connectivity hub in West Africa with over 70 carriers and internet service providers. Lagos, the oil-producing nation’s economic capital, is home to 15 million people. 

Medallion CEO and co-founder Ike Nnamani said he would continue to lead the business. 

According to Rahiel Nasir, research analyst at 451 Research, which is part of S&P Global Market Intelligence, data centres play a vital role in the communications infrastructure landscape. 

“Without them, further digital development across the continent risks hitting a roadblock, especially for enterprises seeking colocation and cloud services as part of their digital transformations,” Nasir explained.

Based in Austin (Texas) and listed on the New York Stock Exchange, DLR is believed to be the largest global provider of cloud- and carrier-neutral data centre, colocation and interconnection solutions. 

Commenting on the acquisition, Digital Realty CEO William Stein said in a statement that over the next decade, there would be a huge opportunity for global businesses to tap into Africa's expanding internet economy – with predictions that it could reach 5.2% of the continent's GDP by 2025.

Stein pointed out that this would contribute nearly $180 billion to the continent’s economy (up from $115 billion in 2020).  “Through major investment in Africa's internet infrastructure, DLR aims to be a core enabler of these economic and quality of life gains,” he noted.

Rakesh Kukreja, iSAT Africa MD, said: “We need to make internet access affordable, reliable and power efficient for people in rural areas of Africa where low potential revenue and difficulty reaching customers have previously made it impossible.”

Krukreja said Digital Realty and Pembani Remgro Infrastructure Fund's expansion across Africa will bring Internet Protocol aggregation points closer to much of Africa's underserved population.

Two years ago, Digital Realty and Pembani Remgro Infrastructure Fund successfully partnered with Kenyan data centre operator iColo . Consequently, iColo announced this week that it would enter Mozambique through the development of its first data centre in the capital Maputo.

The iColo campus in Mombasa was recently expanded to deliver an additional 1.6 megawatts of power and 12,900 square feet of capacity for new and existing customers, along with the new subsea cable landing equipment.  

In addition, iColo has expanded its Nairobi campus with the acquisition of an additional 20 000 square meters of land that will support 14 megawatts of future data center capacity. 

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