The nation’s pursuit of becoming a central hub for data and technology in the sub-region has received impetus from the formalisation of a partnership between Africa Data Centres (ADC) – a subsidiary of Cassava Technologies, a pan-African technology group – and the United States International Development Finance Corporation (DFC).
This partnership will result in the construction of a state-of-the-art data centre at the Ghana Trade Fair Redevelopment Project in Accra. This initiative is part of a US$300million fund aimed at supporting the development of data centres across Africa, with 15 percent of the sum – US$50 million – allocated for Ghana.
At the signing ceremony, Chief Financial Officer-ADC, Finhai Munzara, explained that the data centre has been designed to initially support 10 megawatts (MW) of power, with the capacity of expanding to 30 MW to meet the rising demand.
“We are pleased to extend the strong relationship [with the DFC] to enable faster digital transformation in Ghana – a country that is becoming a regional digital hub, enjoying a significant share of West Africa’s Internet traffic. The site provides us with a unique opportunity to deliver the critical hyper-scale IT infrastructure in a secure, central location,” he said, with construction of the multi-phased project expected to commence in 2024 – with the centre being operational within 12 to 18 months.
This comes as the continent continues to witness a boom in data centre construction owing to the digital infrastructure gap.
According to Xalam Analytics, a digital infrastructure consultancy, approximately 70 new data centres were established between 2017 and 2022; and the commercial hosting capacity in Africa is doubling every three years. This growth is vital to meet the increasing demand.
A report by the African Data Centres Association (ADCA) shows that Africa needs 1,000MW and 700 facilities, as the COVID-19 pandemic has accelerated the process of digitalisation across Africa… making the need for data centres even more critical.
Impact
Currently, Africa holds less than two percent of the global data centre capacity; with over half of this capacity concentrated in South Africa. The continent’s data centre market is currently valued at US$2billion annually, but it is projected to exceed US$5billion by 2026. This growth is driven by financial institutions, governments, corporations, cloud service providers and hyperscalers. Already, research has shown that a 10 percent increase in broadband penetration translates into a two percent boost in GDP.
Mr. Munzara highlighted that a data centre of this magnitude will reduce connectivity latency, benefitting businesses heavily reliant on Internet services, especially SMEs. “It’s a win-win situation for everyone, especially businesses, as local hosting will reduce latency – resulting in faster access for businesses and the broader economy,” he said, emphasising the commitment to collaboration with stakeholders.
Partnerships
Chief Executive Officer-DFC, Scott Nathan, said the partnership showcases the importance of private sector-led digital infrastructure development in the country.
Highlighting the benefits that will accrue to the country, he said: “Data centres can help attract data-driven companies looking for a foothold or to expand their operations in growing African economies. Markets with trusted technology and dependable data storage are magnets for businesses that create jobs and opportunity in high growth sectors”.
He added that when the centre is operational, it will aid in developing economic growth in Accra and spread to communities across the country and the wider region. “We are committed to using our full suite of tools – loans, political risk, insurance, technical assistance or equity investment – to make these critical infrastructure investments; and more broadly, to unleash the power of private capital to drive sustainable economic growth and development,” he further stated.
The US Ambassador to Ghana, Virginia Palmer, stated that Ghana remains a critical partner in the Digital Transformation with Africa Initiative – a vehicle that intends to invest over US$350million and facilitate US$450million in line with the Africa Union’s Digital Transformation Strategy and US Strategy Toward sub-Saharan Africa.
Elaborating on the impact of this and other initiatives, she said: “These activities complement our capacity-building assistance to entities throughout the government of Ghana – including the Cyber Security Authority, National Communications Authority and the Ministry of Communications and Digitalisation – on issues ranging from 5Gsecurity to cyberspace, ransomware and telecommunications”.
CEO-Ghana Trade Fair Company, Dr. Agnes Adu, stated that the data centre’s location offers strategic advantages in terms of accessibility and centrality.