The International Finance Corporation (IFC), the private investment arm of the World Bank, has announced a $100 million investment in Raxio Group, a data center developer and operator in Africa to support the construction and expansion of data centers in Africa.
Africa currently accounts for less than 1% of the world’s data center capacity, even though its mobile data usage is growing at approximately 40% annually, about double the global average according to U.S. advocacy group Internet Society.
Seeing the need for enhanced digital infrastructure to meet the demand for data services, Raxio Group is building a network of top standard data centres, including one in Ivory Coast with construction underway in Mozambique, Ethiopia and Democratic Republic of Congo.
The Group launched its first facility in Uganda in 2021. Since then, it has been proactive in establishing a robust network of data centers in other African states. These include the $30 million data center in Kinshasa, DRC, and Raxio Côte d’Ivoire (CIV1) in Abidjan, and Angola’s first independent Tier III data center in the Cacuaco district near Luanda.
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Sarvesh Suri, IFC’s regional industry director for infrastructure and natural resources in Africa, emphasized that data centers and overall digital connectivity are crucial areas of focus for the IFC, as they play a key role in supporting economic growth on the continent.
Hosting data locally within Africa offers multiple advantages, including improved speeds, reduced costs, and enhanced governmental control over cybersecurity and regulatory matters. With the World Bank’s IFC, a lot of associated risks are expected to be mitigated through provison of instruments to support investors and ensure that investments are sustainable, profitable, and economically beneficial for the countries involved.
The expansion of data centers in Africa has attracted interest from global tech giants and infrastructure investors, viewing the continent as a burgeoning market for cloud services. Companies like Amazon Web Services, Microsoft Azure, and Huawei are increasing their presence, aiming to capitalize on the growing demand for digital services.
