The digital infrastructure landscape in Africa is entering a new phase of acceleration. Stanlib Infrastructure Investments—one of South Africa’s largest asset managers with over ZAR 600 billion (approximately USD 32 billion) in assets under management and a strong focus on alternative and infrastructure investments—has taken a strategic step by investing in Cassava Technologies’ subsidiary, Africa Data Centres (ADC), to support the development of AI-ready data centres in Johannesburg and Cape Town. 🌍💡💻
This transaction positions Stanlib not only as a key player in Africa’s digital transformation but also underscores the growing institutional appetite for data infrastructure as a long-term, yield-generating asset class. 💰📈🏗️
Strengthening South Africa’s Digital Backbone ⚡💽🌐
Africa Data Centres, already operating seven state-of-the-art facilities across the continent and serving more than 400 enterprise and hyperscale customers, is strategically positioned to meet the surging demand for cloud computing, AI processing, and secure data hosting. The partnership with Stanlib accelerates ADC’s ability to expand capacity at scale. 🌍🔗🏢
The new investments will allow ADC to expand its existing campuses in Johannesburg and Cape Town, enhancing connectivity and resilience within South Africa’s digital economy. Importantly, the timing coincides with Cassava’s recent collaboration with NVIDIA, part of a landmark US$700 million partnership that will deploy thousands of high-performance GPUs across ADC campuses in South Africa and other African countries. The first phase, launched in June 2025, includes 3,000 GPUs delivered to South Africa, with plans to expand by an additional 12,000 GPUs across Egypt 🇪🇬, Kenya 🇰🇪, Nigeria 🇳🇬, and Morocco 🇲🇦, where ADC plans a smaller but strategic GPU cluster to serve North Africa and bridge connectivity with Europe. This initiative will establish ‘AI factory’ data centres—high-performance clusters enabling AI model training, enterprise computing, and regional innovation. The partnership also incorporates a skills development program, offering more than 3,000 African AI professionals access to this compute infrastructure, ensuring that AI adoption across the continent is both inclusive and transformative. This collaboration between Cassava and NVIDIA signals a clear move toward enabling AI workloads across African markets. ⚙️🤖📶
Financial Modelling and Infrastructure Investment 📊💼🧮
From a financial modelling perspective, investments in data centres combine infrastructure stability with tech-driven growth. These assets typically feature long-term Power Purchase Agreements (PPAs) for energy supply, multi-year tenancy contracts with hyperscalers, and a strong focus on sustainability-linked metrics (such as PUE – Power Usage Effectiveness). 💹⚡🏗️
Financial modellers assessing such projects must consider:
- Revenue Forecasting: Based on rack utilization rates, hyperscaler lease commitments, and potential AI demand growth.
- Capex and Opex Sensitivity: Data centres are capital-intensive. Modelling must account for construction costs, cooling systems, and energy efficiency improvements.
- Debt Structuring: Infrastructure investors like Stanlib often use blended finance structures—balancing long-term debt with equity to achieve target IRRs between 12% and 15%.
For analysts looking to build their own financial models for such digital infrastructure projects, a comprehensive template such as the Data Centre Financial Model Excel Template can serve as a robust base for adaptation, particularly in integrating energy cost scenarios, hyperscaler lease revenue forecasts, and sensitivity analyses. 🧾📊🔍
Institutional Capital Meets Digital Transformation 🌱🏦🌐
Stanlib’s move represents a broader trend: infrastructure funds are diversifying beyond traditional sectors (roads, ports, power) toward digital and sustainable assets. These investments not only deliver financial returns but also enable broader economic resilience—supporting innovation, job creation, and local value chains. 🌍💼📈
As Andy Louw, Co-Head at Stanlib Infrastructure Investments, noted: “Data centres are critical infrastructure for the modern economy, and our investment will strengthen South Africa’s digital backbone.” This approach aligns with South Africa’s national digital strategy, which emphasizes private-sector participation in expanding data infrastructure. 🇿🇦💡🤝
The Strategic Outlook 🚀📡🌏
Cassava’s Africa Data Centres are set to play a defining role in positioning South Africa as a regional hub for digital innovation. The combination of Stanlib’s financial expertise and Cassava’s technological leadership creates a compelling blueprint for AI-enabled infrastructure development across emerging markets. 🧠💻🌍
For investors, the key takeaway is clear: digital infrastructure is the new frontier of sustainable investing. As data, AI, and connectivity become central to economic growth, projects like ADC’s expansion offer both strong returns and transformative impact. 💰📊🌱
Looking Ahead 💡📈🌍
The Stanlib-ADC partnership exemplifies how Africa can bridge its infrastructure gap by leveraging both institutional capital and technological innovation. With data traffic expected to grow exponentially across the continent, South Africa stands at the threshold of a digital renaissance—anchored by smart capital, sustainable design, and precise financial modelling. 🌍💫⚡
Finteam 