Equinix plans $390m expansion drive in Africa after acquiring MainOne
TLDR
- Equinix, the world's largest digital infrastructure firm, to invest $390 million in expanding operations in Africa
- Focus on constructing new data centers in Sub-Saharan Africa after recent acquisition of MainOne
- Strategic move to capitalize on Africa's growing digital infrastructure needs, targeting key markets in West and East Africa
Equinix, the world's largest digital infrastructure firm based in the United States, is significantly increasing its investment in Africa with a plan to spend $390 million on expanding its operations in the continent. This expansion initiative includes the construction of new data centers in the Sub-Saharan region of Africa.
This move comes less than two years after Equinix invested $320 million in acquiring MainOne, a prominent West African data center and connectivity solutions provider. Through this acquisition, Equinix gained a foothold in key African markets such as Nigeria, Ghana, and Ivory Coast, positioning itself to capitalize on the continent's growing digital infrastructure needs.
Having established a presence in Nigeria, which serves as a major data center hub in Africa, Equinix is now seeking to further strengthen its position in West Africa. In addition, the company aims to expand its existing operations in South Africa while exploring opportunities to enter the East African market.
Key Takeaways
Equinix's expansion efforts underscore the growing importance of Africa in the global digital economy. Africa’s cloud computing and data center market is undeniably untapped. The continent still grapples with the lack of continent-wide digital infrastructure crucial for a digitally included region. Significant investments are being poured by operators into the space with the hope of bridging this gap while tapping into the market revenue potential. The Africa data center market was valued at $2 billion in 2020 and is expected to grow to $5 billion by 2026, at a CAGR of 15%. Read more about why Big Tech companies are building data centers in Africa in this edition of our Pulse54 newsletter.
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