Raxio Group has raised its committed capital to more than $380 million after existing shareholders Meridiam and Roha increased their investment, giving the African data center operator more resources to expand as demand for digital infrastructure continues to climb.

The latest funding follows a sixfold increase in the company’s contracted capacity this year, reflecting stronger demand from cloud providers, technology companies and businesses shifting more services online across Africa.

The investment comes as the continent experiences rising demand for data centers driven by artificial intelligence, cloud computing and growing internet use.

Companies are also seeking reliable facilities to support high-performance computing and data storage closer to their customers.

Chief Executive Officer Robert Skjodt said demand for carrier-neutral data centers is growing as more organizations adopt cloud services and AI applications.

He said the additional funding will help the company expand its footprint and deliver the infrastructure customers need.

Industry forecasts point to sustained growth in Africa’s digital economy, with operators increasing investment to meet demand for modern data centers across major markets.

Growing demand for larger facilities

The new equity raises Raxio’s committed capital from $350 million and builds on the $100 million financing package the company secured last year from the International Finance Corporation, part of the World Bank Group.

The company has also received debt financing from Proparco and the Emerging Africa & Asia Infrastructure Fund.

Raxio said it is seeing more requests for facilities with power capacity of 10 megawatts or more.

The company is also increasing rack density to support artificial intelligence workloads while reviewing expansion opportunities in additional African markets.

Africa’s digital economy drives investment

Consulting firm McKinsey estimates Africa’s installed data center capacity could increase from about 0.4 gigawatts today to between 1.5 gigawatts and 2.2 gigawatts by 2030.

The firm estimates that expansion could generate at least $20 billion in value across the digital infrastructure ecosystem.

Raxio Group develops and operates carrier-neutral, Tier III-certified data centers across Africa, serving cloud providers, telecom operators, enterprises and hyperscale customers.

The company has expanded its presence in multiple African markets as businesses invest in secure, low-latency digital infrastructure to support cloud services and AI applications.

As investment in Africa’s digital economy continues to grow, operators such as Raxio are positioning themselves to meet rising demand for data storage, cloud connectivity and computing capacity across the continent.