Investment firm Africa50 has invested in Egyptian data center firm Raya Data Center (RDC), which will use the funds to develop a new facility.
Africa50, the pan-African infrastructure investor and asset manager, this week announced a $15m equity investment in RDC to fund the development of a greenfield Tier III-quality data center in Egypt.
Details on location and specification weren’t shared. Construction is reportedly set to start in early 2025.
A Raya Holding stock exchange filing notes through the investment, Africa50 will acquire a 42.9 percent stake in RDC.
Zawya reports the investment will be joined by an additional $10 million from Raya Information Technology, bringing the total investment to $25 million.
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. RDC’s current and future data centers will not only support the Egyptian government’s digitization push but also provide the necessary digital infrastructure on which the country’s thriving SME and startup ecosystem can build.”
RDC is wholly owned by Egypt Exchange-listed conglomerate Raya Holding for Financial Investment (Raya Holding). Established in 2012 as a subsidiary of Raya Information Technology, the company currently operates two data centers in Cairo, according to Africa50.
Ahmed Khalil, CEO of Raya Holding, said: "We are thrilled to announce this strategic partnership with Africa50, which highlights the confidence investors have in Raya Holding’s vision and success in building a diverse portfolio of investments in high-potential sectors. 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.”
Africa50 is an infrastructure investment platform focused on facilitating project development, mobilizing public and private sector finance, and investing in infrastructure on the continent. The African Development Bank is one of the shareholders of Africa50, alongside 28 African countries and 2 African central banks. It has previously invested in pan-African data center operator PAIX.
Raya Holding was formed in 1999 after the merger of seven local IT firms. Today it has investments across trade & distribution, IT, manufacturing, industrial & logistics, fintech, and more.
On the Raya Holding website, Raya Information Technology reportedly owns and operates three data centers around the Cairo area in 6th of October City, Maadi, and New Cairo. According to Data Center Map, its facility at Raya’s headquarters in 6th of October City spans 350 sqm (3,765 sq ft).
Hisham Abdelrasoul, CEO of Raya Information Technology, added: “At Raya Information Technology, we prioritize entrepreneurship in digital transformation. 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.”
Raya Data Center 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.
