Cassava Technologies Group's data center construction and operations subsidiary, Africa Data Centers (ADC), has received a US$83 million disbursement from the U.S. Department of Commerce's International Development Finance Agency (DFC). This disbursement is part of a US$300 million commitment, which will expand the company's South African data center network.
Data centers will be built in ten of the continent's most important economic capitals, including Abidjan, Lagos, Accra, Cairo and Casablanca, in order to capitalize on the acceleration of digital transformation across Africa. In September 2021, the DFC announced a 2-year US$500 million investment plan specifically for that purpose.
“DFC’s investment in Africa Data Centers helps expand critical information and communications technology infrastructure in South Africa, Kenya and other countries in the region. Building secure, trusted information technology networks will help enable development and economic growth throughout Africa,” explained DFC CEO Scott Nathan.
According to the "South Africa Data Center Market - Investment Analysis & Growth Opportunities 2021-2026" report, investment in the data center market in South Africa is expected to reach US$3 billion by 2026, up from an estimated US$1.31 billion in 2020. This represents a compound annual growth rate of 15.17% from 2021-2026. By 2024, cloud adoption is expected to grow by 25% annually and generate revenues of US$1.5 billion.
