Digital Realty Expands its footprint Across Africa.

Digital Realty Expands in Africa

Digital Realty and Pembani Remgro Infrastructure Fund announced today the formation of a joint venture to acquire Medallion Data Centres, Nigeria’s leading colocation and interconnection provider.  

Medallion operates two data centers, one in Lagos, the most populous urban metropolitan area in Africa with approximately 15 million people, and one in Abuja, the capital of Nigeria.  Medallion’s Lagos data center is the leading connectivity hub in Western Africa with over 70 carriers and internet service providers, over 80% of the public peering traffic on the Nigerian Internet Exchange, and a peering point for all subsea cables currently operating in Nigeria with plans to serve as a peering point for the nine new subsea cables scheduled to be in operation in Lagos by 2023.  

With a population of over 200 million, Nigeria is Africa’s most populous country and the seventh most populous in the world.  Its GDP is the largest in Africa and was the 26thlargest globally in 2019.  With a large and young population, a growing and diversifying economy as well as a maturing regulatory environment, Nigeria has experienced strong economic growth in recent years. 

As part of the announcement William Stein, Chief Executive Officer, Digital Realty stated “There is a huge opportunity to both meet growing customer demand for connectivity in Africa and improve the internet infrastructure that serves over one billion people who don’t yet have proper access to the benefits of the internet.  The expansion of our platform announced today is a leap forward but it’s just the start of our $500 million commitment to invest in the continent over the next decade.  We see a huge opportunity to underpin Africa’s expanding internet economy and play a central role in its growth.”  

As part of the transaction, the joint venture is also acquiring a land parcel adjacent to the Lagos data center to provide near-term expansion capacity.  Medallion’s management team, led by CEO and co-founder Ike Nnamani, will continue to lead the business.  

Separately, Digital Realty and Pembani Remgro Infrastructure Fund have successfully partnered with Kenyan data center operator iColo since 2019, and iColo announced today that it will enter Mozambique through the development of its first data center in the country, located in the capital and port city of Maputo.  

The iColo campus in Mombasa was recently expanded to deliver an additional 1.6 megawatts of power and 12,900 square feet of capacity for new and existing customers, along with the new subsea cable landing equipment.  In addition, iColo has expanded its Nairobi campus with the acquisition of an additional 215,000 square feet of land that will support 14 megawatts of future data center capacity.  

Africa is evolving into a major interconnection hub for data-driven businesses that require a scalable, future-proof platform to facilitate global hybrid and multi-cloud infrastructure. 

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