The World Bank’s International Finance Corporation (IFC) is investing $100 million in Raxio Group to expand data center infrastructure across Africa, supporting facilities from Ethiopia to Angola.
Despite soaring digital demand, Africa holds less than 1% of global data center capacity, even as mobile data usage grows at nearly double the global average, according to the Internet Society.
The IFC’s largest digital infrastructure investment in Africa reflects growing global interest in the continent’s digital economy. Locally hosted data reduces costs, enhances speeds, and strengthens cybersecurity regulation.
Raxio, which launched its first facility in Uganda in 2021, is building a network of data centers, including projects in Ivory Coast, Mozambique, Ethiopia, and the Democratic Republic of Congo.
As global tech giants expand cloud services in Africa, many still rely on Europe or South Africa for hosting. Raxio CEO Robert Skjodt noted strong government support for local data infrastructure.
Challenges such as unreliable power, complex regulations, and political instability make early investments risky. Development finance institutions like the IFC help mitigate these risks, paving the way for long-term private capital, said IFC regional industry director Sarvesh Suri.