Africa50, the pan-African infrastructure investor and asset manager, has announced a US$ 15 million investment in Raya Data Center (RDC), an Egyptian provider of colocation and cloud services.
Africa50 was established by African governments and the African Development Bank to help bridge Africa’s infrastructure funding gap by facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent. Africa50 focuses on medium- to large-scale projects that have a significant development impact and that provide an appropriate risk-adjusted return to investors.
The US$ 15 million investment will fund the development of a greenfield tier III data center in Egypt, one of the thriving emerging markets in North Africa’s digital infrastructure landscape. According to Arizton Advisory and Intelligence, the data center market size is projected to reach US$ 513 million by 2029 in Eqypt, growing at a Compounded Average Growth Rate (CAGR) of 18.85 percent from 2023 to 2029.
RDC, which is wholly-owned by Egypt Exchange-listed conglomerate Raya Holding for Financial Investment (Raya Holding), currently operates two tier III data centers in Cairo. Africa50 has acquired 42.9 percent stake in RDC. The new equity financing not only allows RDC to sustainably expand its capacity but also provides an opportunity for the company to leverage Africa50’s data center expertise and networks across the continent.
“Egypt’s data center market is brimming with potential, with an expected annual growth rate of 12.8% until 2030. Through Raya Data Center, we are committed to meeting the region’s increasing demand for digital services and playing a pivotal role in the digital transformation of Egypt and beyond,” said Ahmed Khalil, CEO of Raya Holding, adding, “This partnership is a fundamental step towards achieving our ambitious expansion and growth goals while delivering sustainable value for our shareholders.”
Eng. Hisham Abdelrasoul, CEO of Raya Information Technology, emphasised, “Raya Data Center is committed to providing a world-class cloud infrastructure, marked by exceptional security and reliability. This partnership with Africa50 will significantly bolster our ability to support digital economic growth and drive innovation, ensuring the sustainable delivery of critical services with unmatched efficiency.”
Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50 said, “We are delighted to enter one of Africa’s largest data center markets alongside a proven operator such as Raya Data Center. This investment is a key building block in our fast-growing pan-African data center portfolio,” adding, “The investment positions RDC to attract international hyperscale customers in North Africa, the Middle East and Europe, given Egypt’s strategic location.”
