Liquid Telecom raises $307 million for data centre projects across Africa

African network operator Liquid Telecom has raised US$307 million via a rights issue in order to invest in data centre projects across the continent.

Liquid has already built more than 70,000 km of fibre networking across Africa and operates data centres in South Africa, Kenya and Rwanda with a combined potential 19,000 square metres of rack space and 78MW of power.

The company also announced that $40 million of the funding round came from the UK development finance institution CDC Group. This is CDC’s second investment in the company, following a $180 million investment in 2018.

“This will play an important role in addressing the increasing demand for digital services and help close the digital divide between Africa and other regions,” said CDC’s CEO Nick O’Donohoe. “Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth.”

Nic Rudnick, Group CEO of Liquid Telecom added: “CDC’s additional equity investment into Liquid Telecom represents another crucial step in connecting businesses in Africa, with Liquid Telecom at the forefront of the continent’s eruption in technology adoption.

“Africa has significant untapped economic potential that is being unlocked by improving connectivity, data storage, and the use of cloud-based applications. This investment will bring significant economic benefits to developing markets across the continent.”