The US International Development Finance Corporation (DFC) has reiterated its promise to provide $300 million to Africa Data Centres (ADC) for the development of data centers in a number of African nations. An agreement between the two organizations that was inked in Accra confirmed this pledge. The building of the data center is a component of both organizations’ shared goal to bolster ICT infrastructure in Africa.
During the signing ceremony, US Ambassador to Ghana Virginia Palmer stated that the expansion of DFC and AFC’s collaboration to Ghana shows the US government’s commitment to promoting Ghana’s technical development. She said technical development and digitalization now serve as the primary drivers of entrepreneurship, economic growth, and the ability of society as a whole to address the world’s most serious problems.
Palmer pointed out that entrepreneurs were embracing technology and using it inventively to create possibilities and spur growth, both in Ghana and across the continent. “Ghana is harnessing the potential of the digital economy, and we applaud its vision and commitment to building a strong digital ecosystem.
“It is a testament to Ghana’s focus on creating an environment that fosters innovation, attracts investment, and empowers its people,” she stated.
She noted that the US was working to support these initiatives and that President Biden had launched the Digital Transformation with Africa initiative in December 2022 at the Africa Leaders’ Summit. This initiative’s goal was to increase digital access and literacy while bolstering the continent’s digitally enabling environments.
“Working with Congress, this initiative intends to invest over $350 million and facilitate over $450 million in financing for Africa, in line with the African Union’s Digital Transformation Strategy and the US Strategy Toward Sub-Saharan Africa,” she said.
Data demand
According to Finhai Munzara, the Chief Financial Officer of Africa Data Centres, the continent as a whole needs up to 1,000 MW and 700 facilities to meet demand and put capacity density on a level with that of South Africa, the continent’s leader, up from the current capacity of under 200 MW per data center.
He said the DFC has already helped ADC build this crucial infrastructure in Kenya and South Africa as part of its ambitious goals to reach 10 of the continent’s major industrial hubs. This support came after the DFC and ADC signed a $300 million facility.
“We are pleased to extend the strong relationship to enable faster digital transformation in Ghana, a country that is becoming a regional digital hub, enjoying a significant share of West Africa’s internet traffic.
He stated that ADC plans to deliver up to 30MW of IT capacity in Multiple Phases within the Ghana Trade Fair site, claiming that the location offers a special chance to deploy the essential hyper scale IT infrastructure in a safe, convenient position inside the boundaries of the city, near to the necessary connection infrastructure.
Attracting data-driven companies
Scott Nathan, the CEO of the DFC, stated that data centers might assist drawing data-driven businesses wishing to establish a presence or extend their operations in developing African economies. He asserted that industries producing jobs and opportunities in high-growth industries are drawn to markets with reliable technology and data storage.
“When this data center is operational, it will aid development and economic growth here in Accra, for communities across the country, and in the wider region,” he said.