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Africa50 commits $15mln in Raya Data Centre; construction to start next year
EGX-listed investment conglomerate Raya Holding for Financial Investments announced on Monday that Africa50, the Morocco-based Pan-African infrastructure investor and asset manager, is investing $15 million in Raya Data Centre (RDC).
The equity financing will be complemented by a $10 million contribution from RDC’s parent company, Raya Information Technology, wholly owned by Raya Holding.
The funds will support the construction of a new Tier III data centre in Egypt, with construction set to begin in early 2025, according to a press statement by Raya Holding.
The total $25 million investment together with investments from other unnamed investors will increase RDC’s market valuation to over 2.2 billion Egyptian pounds ($44 million), the statement said.
The new facility will cater to the growing regional demand for cloud computing and advanced digital solutions while incorporating eco-friendly and energy-efficient practices, the statement noted.
"Raya Data Centre will focus on sectors such as healthcare, real estate, manufacturing, banking, and government," said Hisham Abdelrasoul, CEO of Raya Information Technology.
The capacity of the planned data centre wasnt disclosed but RDC currently operates two tier III data centres in Cairo.
The investment comes on the heels of a $40 million funding round for Raya Foods, another portfolio company of Raya Holding, in October 2024 in partnership with Helios Investment Partners, to boost food production and exports.
Abdelrasoul noted that Egypt remains a promising market despite rising energy costs, emphasising the anticipated impact of the forthcoming data protection law.
"This law will balance data availability and protection," he said.
Ahmed Khalil, CEO of Raya Holding, said the partnership with Africa50 marks a key milestone in advancing Egypt’s digital infrastructure and positioning the country as a regional technology hub.
Raya Data Centre was advised on this transaction by CI Capital as its financial advisor and Backer McKenzie as its legal advisor. Africa50 was advised by Herbert Smith Freehills and Matouk, Bassiouny & Hennawy as legal advisors.
(1 US Dollar = 50.45 Egyptian Pounds) |
