The expansion of digital infrastructure is a key driver of economic growth in Africa, where demand for cloud computing, AI, and digital financial services is rising rapidly.

Raxio Group, a data center platform in Sub-Saharan Africa, announced today April 3rd that it has secured $100 million in financing from the International Finance Corporation (IFC), a member of the World Bank Group. The funding will support Raxio’s expansion of AI, cloud computing, and digital financial services, which are critical to Africa’s economic growth and digital inclusion.

“This funding from IFC is a powerful endorsement of Raxio’s vision,” said Robert Skjødt, CEO of Raxio Group. “It allows us to bring critical infrastructure to the regions that need it most and attract further investment as we continue to grow.”

The investment will enable Raxio to double its deployment of high-quality colocation data centers within three years, addressing increasing demand in underserved markets. The company is currently developing a regional data center network in Ethiopia, Mozambique, the Democratic Republic of Congo, Côte d’Ivoire, Tanzania, and Angola.

Raxio aims to fill infrastructure gaps by introducing Tier III-certified, carrier-neutral, and secure data centers in key African markets. These facilities will enhance connectivity, boost cloud adoption, and attract more investment in the digital economy.

Raxio’s data centers are designed for 24/7 reliability and incorporate renewable energy solutions to reduce environmental impact. The company utilizes energy-efficient equipment to minimize electricity and water consumption, ensuring sustainable digital growth in Africa.

The financing from IFC builds on earlier debt funding from Proparco and the Emerging Africa Asia Infrastructure Fund (EAAIF), alongside equity investments from Roha Group and Meridiam. The funding also includes concessional financing from the GROW Facility (which promotes gender equity and inclusive economic growth) and the IDA Private Sector Window, which supports private investment in fragile markets.

Data centers play a crucial role in Africa's digital transformation by serving as the backbone for data storage, processing, and transmission. According to the "Africa Data Center Market Size – Industry Report on Share, Growth Trends & Forecasts Analysis Up to 2029" by Mordor Intelligence, the African data center market is expected to expand at a compound annual growth rate (CAGR) of 12.34% between 2024 and 2029. This growth is driven by rising digitalization, increasing demand for cloud services, and the rapid expansion of data center infrastructure across the continent.

Hikmatu Bilali