Raxio Gets $100M Boost from IFC to Bridge Africa’s Data Infrastructure Gap

​Raxio Group, a prominent pan-African data center developer and operator, has secured a $100 million investment from the International Finance Corporation (IFC), the private sector arm of the World Bank. This substantial funding aims to bolster digital infrastructure across Africa, addressing the continent’s growing demand for data services. ​

Africa currently accounts for less than 1% of the world’s data center capacity, despite mobile data usage growing approximately 40% annually—nearly double the global average. This disparity underscores the critical need for enhanced digital infrastructure to support the continent’s digital transformation. Raxio Group launched its first facility in Uganda in 2021 and has since constructed a Tier III data center network in key African markets, including Ethiopia, Angola, the Ivory Coast, Mozambique, the Democratic Republic of Congo, and Uganda. These facilities are designed to provide secure colocation spaces, delivering up to 3.3 MW of IT power and accommodating hundreds of racks. The expansion aligns with the increasing interest from global tech giants such as Amazon Web Services, Microsoft Azure, and Huawei, who are seeking to enhance their presence on the continent. Hosting data locally within Africa is expected to reduce costs, improve speeds, and provide governments with greater control over cybersecurity and regulation. ​

However, building data centers in frontier markets presents challenges, including unreliable power supply, complex regulations, and political instability. The IFC’s financing aims to mitigate these risks, encouraging sustainable and profitable long-term investments that support African economic growth. This investment follows Raxio’s successful equity funding rounds, including an additional $46 million secured in October 2023 from existing shareholders Roha and Meridiam. These funds have been strategically deployed to support Raxio’s expansion initiatives and facilitate the development of high-quality, hyperscale-ready data center facilities in leading African metro areas. ​

 In April 2023, Raxio also secured a sustainability-linked debt facility of up to $170 million from Proparco and the Emerging Africa Infrastructure Fund (EAIF). This financing package, anchored in environmental, social, and governance (ESG) principles, promotes energy efficiency, responsible water use practices, and female empowerment. The funds have been used to accelerate Raxio’s roll-out strategy of state-of-the-art, highly reliable, and efficient Tier III certified data center infrastructure across the continent. ​

Raxio’s commitment to sustainability is evident in its design and development of facilities, which emphasize minimizing environmental impact. The company focuses on reducing energy and water consumption through efficient and innovative designs and equipment selection, supporting green initiatives that benefit the communities where Raxio operates.

The IFC’s $100 million investment marks a significant milestone in Raxio’s mission to build a digital Africa. By expanding its network of data centers, Raxio aims to provide the foundational infrastructure necessary for the continent’s digital economy to thrive, fostering innovation, connectivity, and economic growth across sub-Saharan Africa.