Africa50, the pan-African infrastructure investor and asset manager, has announced a $15 million equity investment in Raya Data Center (RDC), a subsidiary of Egypt’s Raya Holding for Financial Investment. The funds will be used to develop a new greenfield Tier III-quality data center in Egypt.
Although the specific location and specifications have not been disclosed, construction is expected to begin in early 2025. As part of the deal, Africa50 will acquire a 42.9% stake in RDC, according to a stock exchange filing by Raya Holding. The investment will be supplemented 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, commented: “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 owned by Raya Holding, which is listed on the Egyptian Exchange. Established in 2012 as a subsidiary of Raya Information Technology, RDC currently operates two data centers in Cairo.
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.”
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.”
Africa50 is an infrastructure investment platform focused on developing projects, mobilizing both public and private sector finance, and investing in African infrastructure. The African Development Bank is a shareholder of Africa50, along with 28 African countries and 2 African central banks. Previously, Africa50 has invested in pan-African data center operator PAIX.
Raya Holding was founded in 1999 through the merger of seven local IT firms. Raya Information Technology, a subsidiary of Raya Holding, operates three data centers in the Cairo area, including facilities in 6th of October City, Maadi, and New Cairo. According to Data Center Map, its facility in 6th of October City spans 350 sqm (3,765 sq ft).
