Raxio Data Centers, an African data center operator with a presence in Ethiopia, has announced that it has secured a sustainability-linked debt facility of up to $170 million to finance its data center development and expansion plans in Africa.
The financing package includes $110 million from Proparco and the Emerging Africa Infrastructure Fund (EAIF), which are both development finance institutions with a joint objective of contributing to the development of digital infrastructure in Africa.
Raxio’s current footprint covers seven countries in Africa, including Uganda, Ethiopia, Mozambique, the Democratic Republic of Congo, Côte d’Ivoire, Angola, and Tanzania.
In Ethiopia, Raxio has a Tier III-ready carrier-neutral data center situated in the ICT Park.
In the past, Raxio has been backed by investments from Roha and Meridiam, and the new funding will be used to accelerate Raxio’s growth in African markets and will support the construction and expansion of existing and new facilities in the region.
The package includes energy efficiency, responsible water use practices, and female empowerment as key principles that align with the values of the lenders and Raxio.
Water is used in data centers for cooling purposes. Data centers generate a significant amount of heat as a result of the operation of thousands of computer servers and networking equipment that process and store data.
According to one study, even a small 1 MW data center using a traditional cooling process can potentially use approximately 25.5 million liters of water each year.
Related: Raxio Ethiopia to Open Doors in 2023
According to the announcement, Raxio’s water and energy use efficiency is set to become a benchmark in Africa.
“This is a momentous milestone for Raxio, and we are very excited to have found in Proparco and EAIF the ideal long-term partners, with common objectives and values, said Robert Mullins, CEO of Raxio Data Centers.
“Raxio is committed to building a digital Africa, and this financing gives us the runway we need to continue executing our strategy,” he added.