iXAfrica has secured $200 million in debt financing from Rand Merchant Bank (RMB), the investment banking arm of South Africa’s FirstRand Group, to scale up its Nairobi operations. The funds which will be disbursed in tranches will support an ambitious expansion of 20 megawatts (MW) of IT power, positioning iXAfrica as a leading data infrastructure provider in East Africa.
A Strategic Expansion
Earlier this year, iXAfrica unveiled plans to build NBOX1, a 2.25MW hyperscale data facility in Nairobi. With the new funding, the company will significantly boost the capacity of this site, ensuring it can keep pace with rising cloud adoption and digital transformation across the region.
The move underscores iXAfrica’s growing influence in the market. As demand for reliable data storage and processing surges, the company’s ability to scale makes it an attractive partner for enterprises seeking to secure mission-critical operations locally.
Meeting Surging Cloud Demand
Cloud adoption in Kenya and the wider East African region has accelerated in recent years, driven by telecom operators, financial institutions, and global tech companies expanding their presence. iXAfrica already counts Safaricom, Kenya’s largest telecom provider, among its partners, alongside several large corporations that rely on its facilities for secure data management.
This new capacity will not only strengthen iXAfrica’s market share but also contribute to building a more resilient digital ecosystem for businesses operating in the region.
RMB’s Growing Bet on African Data Infrastructure
For RMB, the investment signals its deepening commitment to Africa’s digital economy. The bank is no stranger to infrastructure-heavy financing:
- In 2024, it backed Wingu Africa with $60 million to fund its East Africa expansion.
- In June 2025, it provided $110 million to Africa Data Centres to grow capacity in South Africa.
By supporting iXAfrica, RMB is planting firmer roots in East Africa’s data centre landscape, where long-term contracts with telecoms and banks offer predictable returns in a fast-growing sector.
The Bigger Picture
While the deal is structured as debt, analysts note that it could pave the way for broader collaboration between RMB and iXAfrica. The operator has previously expressed openness to strategic partnerships to fuel its regional growth ambitions and with this injection of capital, expansion beyond Nairobi looks increasingly viable.
Why It Matters
Data centres are the backbone of Africa’s digital economy. From enabling financial services to powering mobile applications and e-commerce, reliable data infrastructure is critical for sustaining growth. As more international cloud providers eye Africa as a frontier for expansion, iXAfrica’s $200 million boost positions it to play a central role in shaping East Africa’s digital future.
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