Global colocation data center operator Equinix has made a major announcement to strengthen its position in Africa by allocating a sizeable $390 million investment to extend its data center infrastructure across the continent, according to Bloomberg. This strategic investment is expected to take place over the course of the next five years, focusing on key areas in western and southern Africa.
This initiative would demonstrate Equinix’s dedication to expanding its data center operations in Africa, a region that would quickly become into a hub for digital infrastructure and digital growth.
Equinix has made the decision to allocate funds toward the construction of more data centers in response to the rising competition among African data center providers. There’s a greater need than ever for reliable and scalable data infrastructure due to the continent's rapid digital transformation, said Sandile Dube, the Managing Director of Equinix for South Africa, in an interview with Bloomberg. He outlined the company's investment strategy and emphasized the continuous research being done to find new areas for growth, notably in East Africa.
Acquisition of MainOne
According to Mr. Dube, the investment plan exclusively concerns the building of data centers in the regions where Equinix now does business. It does not include any proposals for new markets. With the development of its first colocation data center in South Africa in 2023 and its entrance into the market in the first quarter of 2022 via the $320 million acquisition of MainOne, this endeavor represents a crucial phase of expansion for Equinix in Africa.
Due to the continent's growing need for connectivity and data storage solutions, major technology companies like Microsoft, AWS, and Huawei are making significant investments in Africa's digital environment. Even though Africa only has 1% of the world's data center capacity, investors may still see significant development potential in this region.
Read the full interview article at Bloomberg here.
