Africa Data Centres (ADC), a leading data center provider across the African continent, has secured a massive $109 million financing deal to significantly boost its operations in South Africa.
The funding from Rand Merchant Bank (RMB) will allow ADC, a division of Cassava Technologies, to increase its hyperscale data center capacity in the country by an additional 20 megawatts.
It marks a major milestone for the firm’s ambitious $500 million investment plan announced in 2021 to build 10 new large-scale data centers across 10 African nations over two years.
The expansion drive aims to meet soaring demand for cloud computing services as businesses and consumers rapidly digitize.
“This funding underscores our commitment to growth and confidence in South Africa’s data center market. It will support our customers’ digital transformation journeys,” Hardy Pemhiwa, Cassava Technologies president and CEO, said.
ADC already operates facilities in Johannesburg, Cape Town and other cities like Lagos and Nairobi. It has now started developing a second 20MW data center in Cape Town, with the new funding potentially enabling further South African projects.
Nana Phiri, head of corporate clients at RMB, highlighted the “significant digital infrastructure opportunity” due to an Africa-wide “deficit of data center supply versus demand.“
“With exponential growth in capacity needs across the continent, we’re proud to partner with Africa Data Centres as they facilitate this digital transformation,” Phiri stated.
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The tailor-made RMB financing deal, worth around 2 billion rand, is part of the bank’s mandate to bankroll a “sustainable digital economy” in South Africa and beyond.
For ADC’s parent Cassava Technologies, the strategic investment highlights its position as a central player in Africa’s data center boom as major cloud providers increasingly establish local infrastructure.
The funding injection also reflects growing recognition of data centers’ critical role in advancing digital inclusion and connectivity across the continent.
