Raxio Raises Funding to $380 Million and Expands to Tanzania
Raxio Group, a pan-African colocation operator, has secured an additional $380 million in funding from its main shareholders, Meridiam and Roha Group. This brings their total funding pool to an impressive amount.
"Demand for high-quality data centre infrastructure continues to surge across Africa," stated Robert Skjodt, CEO of Raxio Group. "This enhanced capital position allows us to seize opportunities and deliver world-class, carrier-neutral infrastructure in markets like Tanzania."
The company already operates in six African countries, including the Democratic Republic of Congo, Mozambique, Ivory Coast, Angola, Ethiopia, and Uganda. Their strategy focuses on markets typically overlooked by hyperscalers.
Tanzanian Expansion
Raxio first announced plans for a data center in Dar es Salaam, Tanzania, back in March 2022, marking the country’s first privately owned Tier III carrier-neutral data center.
Skjødt highlights that their facilities are AI-ready, fulfilling the demands of emerging AI workloads. He also mentions observing international cloud providers making plans for Africa, positioning Raxio as a potential landlord rather than competitor.
The Market Opportunity
African data usage lags behind global averages, but its young and rapidly growing population drives significant demand for digital services. McKinsey predicts that by 2030, Africa’s data center capacity demand could reach 2.2 gigawatts, requiring $10-$20 billion in investment.
In comparison, Raxio’s $380 million funding is a modest sum, yet it demonstrates the confidence of investors who recognize the region’s potential. The company has secured innovative financing, including a $100 million debt package from the World Bank’s International Finance Corporation and a sustainability-linked facility of up to $170 million from Proparco and the Emerging Africa Infrastructure Fund.
This move highlights the growing interest in African digital infrastructure from both local and international investors.