The sub-Saharan African data centre company, Raxio Group, has announced an agreement with the International Finance Corporation (IFC) (a member of the World Bank Group), having secured $100 million in financing.
The investment is set to boost Raxio’s expansion of data centres in Africa in the next three years. The funds will support data centre technologies including cloud computing, AI, and digital financial services, held to be important to Africa’s economic development. Raxio hopes to help more Africans from underprivileged backgrounds gain access to digital tools and services.
Raxio has developed African regional data centre platforms in Tanzania, Angola, Ethiopia, the Democratic Republic of Congo, Côte d’Ivoire, and Mozambique, including a 1.5MW data centre in Kinshasa, capital of the Democratic Republic of the Congo (DRC) recently, providing 1,542m2 (16,598 ft2) hosting 400 racks of capacity. The latest funding will help satisfy the increasing demand for digital infrastructure in parts of Africa that do not yet have sufficient access to data centre-based services.
Over the course of the next three years, Raxio plans to build Tier III-certified carrier-neutral data centres in areas that have been previously ignored for similar investment. It hopes to prioritise places that have strong economic potential, to boost local economies, and create fresh opportunities across the continent.
This is not the first time Raxio has received funding, with previous investments secured from development finance institution Proparco and the Emerging Africa Asia Infrastructure Fund (EAAIF). Roha Group, a pan-Africa data centre developer and operator, and Meridiam, a global investment and asset manager, have also provided similar equity investments in the past.
A portion of IFC’s funding stems from special programmes offering more favourable financial terms, like the GROW facility. GROW aims to promote gender equality and inclusive economic growth on the continent via public-private partnerships. The IFC also receives funds from the IDA Private Sector Window, which encourages private investment in some of the world’s poorest and most fragile markets.
Raxio Group makes best efforts to incorporate renewable energy sources to its facilities, using energy-efficient technology to lower water and electricity use.
In Côte d’Ivoire, Raxio has established a digital hub that serves francophone West Africa, helping connect regional markets and improve trade across borders. In turn, local businesses are experiencing growth as they become integrated into the worldwide digital economy.
Africa’s digital transformation is already well under way, and is expected to accelerate over the next decade.
(Image source: Raxio Group)
