Africa’s data centre sector thrives due to market investments

Africa’s data centre sector thrives due to market investments

Major data centre players are investing in the Digital Transformation of Africa. Khazna Data Centers is enhancing Egypt’s digital infrastructure by building the country’s first hyperscale data centre, while elsewhere on the continent, Africa Data Centres has formed a strategic partnership with LINX to explore digital growth opportunities.

Khazna Data Centers plans to set up Egypt’s first hyperscale data centre

Khazna Data Centers (Khazna), the largest network of hyperscale data centres in the Middle East and North Africa region, has announced its plan to enter the Egypt market with Benya Group, a leading integrated solution, Digital Transformation and ICT infrastructure provider in Egypt and the MEA region.

The new US$250 million state-of-the-art data centre will be Egypt’s first hyperscale data centre and will be built at the Maadi Technology Park, Egypt’s first specialised investment zone.

With an expected capacity of 25 MW of IT load, the data centre will unlock opportunities for businesses in Egypt aiming to expand internationally and targeting multinational corporations who are pursuing growth and innovation in the Middle East and North African markets.

Egypt has recently undertaken a series of investments, digital government services reforms and infrastructure upgrades to enhance the contribution of the Information and Communications Technology (ICT) sector to the country’s economic growth.

The inauguration of this data centre will further address the need for a future-ready digital infrastructure in Egypt where data demands have risen significantly in recent years. This will also support Khazna’s growth strategy into international markets, reinforcing its commitment to expand operations beyond the UAE.

Following the term sheet agreement between Khazna Data Centers and Benya Group to establish a joint venture to build Egypt’s first hyperscale data centre, a memorandum of understanding (MoU) was signed by Eng. Ahmed Mekky, Chairman and CEO of Benya Group; Hassan Al Naqbi, CEO of Khazna Data Centers; and Eng. Amr Aboualam, Chairman of Maadi Technology Park to secure land at Maadi Technology Park for the new data centre.

“We are thrilled to announce our partnership with Khazna, which will enable us to enter the hyperscale data centre construction sector with full force,” said Ahmed Mekky, Chairman and CEO of Benya Group. “This MoU we signed represents a significant step towards strengthening our role in establishing this type of data centre in Egypt, with the support of our partner, Khazna Data Centres, which has an excellent reputation and outstanding expertise in this sector.”

“The new hyperscale data centre will not only meet the needs of the Egyptian market but also, through its extensive capabilities, serve African and Middle Eastern countries. It will contribute to attracting more investments for business sectors involving intensive operations, supporting cloud computing and content system operators.

“In addition, it will encourage major commercial companies to join these giant digital clusters that rely on the latest cloud computing applications, digital technology and Big Data. This MoU is also in line with the group’s policy to enhance Egypt’s digital infrastructure and support the government’s plans to increase foreign investments, as well as support the Ministry of Communications and Information Technology’s policy for Digital Transformation.”

Africa Data Centres and LINX form partnership to explore digital growth in Africa

Africa Data Centres, a business of Cassava Technologies group, has announce it has formed a strategic partnership with The London Internet Exchange (LINX), to explore growth and opportunities in current and new markets across Africa.

Tesh Durvasula, CEO of Africa Data Centres, highlighted the company’s Pan-African Interconnection partnership to explore opportunities continent-wide. The goal is to add value to local network communities, LINX membership and data centre facilities across Africa.

According to recent research by Accenture into the ICT ecosystem, it was revealed that Africa is on the brink of a tech explosion. The consulting firm says certain countries are on a particularly rapid trajectory. For example, by 2050, the share of the economy powered by the Internet (the iGDP) in Kenya, Morocco, Senegal and South Africa will be approximately 6%, similar to where the US is today. While others, like Ghana, are set to reach between 4–5% iGDP, comparable to Brazil’s present level.

This new partnership is the recipe for great things to enhance connectivity and digital services in new and emerging markets across Africa. Data centres are the foundation of economic growth on the continent and without them, sustainable and self-sufficient ICT ecosystems cannot be developed. This is why the company announced the largest expansion plans Africa has ever seen in September 2021, that will see Africa Data Centres investing US$500 million into many new hyperscale data centres across the continent.

“Building new facilities is the one path that Africa can take to address the growing need for storage and networking that are crucial to digitising Africa and bringing digital services to its citizens,” said Durvasula.

Africa Data Centres is Africa’s largest network of interconnected, carrier- and cloud-neutral data centre facilities and currently services nine facilities in six countries. As leaders in the market, the organisation often announces new builds in existing markets, as well as plans for facilities in markets that are currently under-serviced or have no facilities at all.

Similarly, LINX is an expert in its field of delivering redundant and resilient interconnection solutions at its global Internet Exchange Points (IXPs).

Nurani Nimpuno, Head of Global Engagement at LINX, commented: “We are excited to be working with Africa Data Centres on this journey into new markets across Africa. The data centre giant has the largest hub of interconnected facilities on the continent, making it the ideal partner to serve the growth and demand predicted in the ICT sector and opening up fantastic opportunities for countries across Africa, and making digital services a reality for hundreds of millions of citizens.”

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