Tech firm gets Sh2.3 billion to expand Africa data centres

African-based cloud firm PAIX Data Centres has received $20 million (Sh2.3 billion) funding to toll out its services across the continent.

 The firm, which currently operates two data centers in Kenya and Ghana, will fund the company’s data centre capacity expansion and growth plans into new African data centre markets.

 “With the support of Africa50, we will be able to grow and expand our activities by rolling out our data centre services across the continent and by providing a one-stop service to our local and international customers in all key locations across the African continent,” said Wouter van Hulten, PAIX’s chief executive officer.

Over the recent past, companies have accelerated adoption of technology as they seek to plug into the rapidly growing digital economy. The shift towards adoption of tech-based operations was spurred by the Covid-19 restrictions introduced to curb the spread of the virus.

The increasing adoption of technology means the need for cloud services is rising. This has created an opportunity for tech companies to invest in data infrastructure.

 High cost of running an in-house data centre has forced a majority of firms to turn to third party facilities that are affordable.

 “Our colocation services provide our clients choice of connectivity providers, high security, and continuous uptime,” noted Mr Hulten, adding that “Our teams consist of both local and international industry professionals, and we are proud of the multi-national makeup of our company, reflecting the diversity of the continent.”

PAIX’s series B funding, which forms the first tranche, came from Africa50, an African infrastructure investment platform.

PAIX Data Centres was advised on the transaction by Bravura Capital as its financial advisor and Van Doorne as its legal advisor. Africa50 was advised by Allen & Overy.

Raza Hasnani, Africa50 Managing Director and Head of Infrastructure Investments said their goal is to build up Africa’s data centre and internet exchange infrastructure.

 “This digital infrastructure improvement will result in greater accessibility, connectivity, and lower internet and data costs, which will contribute to the use and affordability of internet and wireless data for African consumers across the continent,” said Mr Hasnani

Africa50 currently has 31 shareholders comprising 28 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib.

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