The MoU reaffirms their shared commitment to enhancing ICT infrastructure across the African continent.
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Africa Data Centres and DFC partner to construct US$50m data centre in Ghana
In a significant move towards bolstering Information Communication Technology (ICT) infrastructure in Africa, Africa Data Centres (ADC), a subsidiary of the Cassava Technologies technology group, has entered into a Memorandum of Understanding (MoU) with the United States International Development Finance Corporation (DFC).
Africa Data Centres, DFC sign MoU to build US$50m data centre in Ghana
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It also allows ADC to harness a portion of its existing DFC financing commitment of US$300 million to establish a state-of-the-art data centre in Ghana.
ADC is planning to allocate up to 15 percent of this commitment, which equates to US$50 million, for the construction of the data centre in Ghana. This initiative further aligns with the Ghanaian government's ambitions to nurture the potential of the country's technology sector.
U.S. Ambassador Virginia Palmer expressed the United States government's steadfast commitment to supporting Ghana's digital transformation and the government's digitalization agenda.
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Various U.S. government agencies are actively backing the Digital Transformation Africa initiative and Ghana's digital agenda. Their involvement extends to enhancing access to agricultural and weather data, using ICT-based tools to aid smallholder farmers in managing their operations, and monitoring and mitigating disaster risks. By fostering an environment supportive of entrepreneurship and innovation, these efforts aim to address local challenges and facilitate the growth of homegrown solutions.
The expansion of the partnership between DFC and Africa Data Centres to Ghana represents a prime example of the United States government's dedication to this cause. They view themselves as integral partners in Ghana's journey towards digital transformation, aiming to create a brighter, more connected, and prosperous future for all.
Finhai Munzara, Chief Financial Officer of Africa Data Centres, highlighted the pressing need for data centre capacity across the African continent. While the current capacity hovers around 200MW, Africa requires up to 1,000 MW and 700 facilities to meet growing demand and align capacity density with that of South Africa, the continental leader.
Under the framework of a US$300 million facility, the DFC has already supported ADC in developing essential infrastructure in Kenya and South Africa, in line with their ambitious vision to reach ten major economic hubs across the continent. Their goal is to create a digitally connected future that leaves no African behind.
Mr. Scott Nathan, CEO of DFC, also emphasized the pivotal role data centers play in attracting data-driven companies seeking expansion opportunities in thriving African economies. Markets with reliable technology and secure data storage are magnets for businesses, generating jobs and opportunities in high-growth sectors.
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When operational, this data center will foster development and economic growth in Accra and extend its impact across Ghana and the broader region. DFC's commitment to fortify ICT infrastructure in Africa aligns with President Biden's and the G7's broader commitment to mobilize private capital for high-quality infrastructure investments aimed at improving people's lives.
The partnership between Africa Data Centres and DFC promises to be a catalyst for technological advancement and economic growth in Ghana, firmly placing the nation on the digital transformation map.
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