The American Equinix plans to invest $390 million in the construction of data centers in Africa
February 26th 2024
The American group Equinix plans to invest $390 million in the construction of data centers in Africa over the next five years, with a view to expanding its current activities concentrated in South Africa and West Africa to more other regions, Bloomberg reported this Friday, February 23, 2024, citing a manager of this largest global data center provider.
“Equinix is particularly looking for opportunities in East Africa, and could spend more than $390 million to build or acquire data centers in this region,” said the group’s general manager for Africa. from the South, Sandile Dube. He added: “We will continue to invest where it makes sense on the continent, and we are currently conducting a number of studies to determine these opportunities.”
The Nasdaq-listed group entered Africa two years ago by purchasing MainOne Cable Company, a major digital infrastructure provider present in Nigeria, Ghana and Ivory Coast. It also began construction in 2023 of a data center in Johannesburg, South Africa.
“We will need key data centers on the continent, such as in Europe, and that is why we have started with Lagos, Johannesburg and eventually we would like to add Nairobi,” Mr Dube stressed.
International technology giants such as the American groups Amazon and Microsoft Corporation and the Chinese company Huawei Technologies have invested in data centers in Africa in recent years, due to the increase in demand for connectivity and storage. But the continent still accounts for just 1% of global data center capacity, creating big opportunities for investors looking to tap into the region’s growth potential.
Source: Agency EcoFin Back