Stanlib, the asset management arm of Standard Bank Group, is set to acquire Africa Data Centres, a unit of Cassava Technologies, in a deal that could reshape South Africa’s fast-growing data center market.
The proposed acquisition has received approval from South Africa’s Competition Commission, clearing a significant regulatory hurdle, and is now awaiting final approval from the Competition Tribunal.
The deal centers around the Samrand Data Centre, a large facility near Johannesburg that Africa Data Centres acquired from Standard Bank and subsequently expanded.
Financial terms of the transaction have not been disclosed, but analysts estimate the deal could be worth around $500 million, considering Cassava’s plans to invest $500 million in developing up to 10 hyperscale data centers across Africa.
The acquisition reflects the growing appeal of data centers as a stable investment opportunity, offering predictable cash flows and long-term contracts with cloud providers, telecom operators, and large enterprises.
As Africa’s digital economy continues to grow, data centers are becoming increasingly critical infrastructure, supporting banking systems, government platforms, e-commerce, and telecom networks.
Strive Masiyiwa’s Cassava Technologies, which owns Africa Data Centres, has been expanding its digital infrastructure footprint across Africa, leveraging its extensive fiber backbone and connectivity services.
The company has secured a 2 billion rand financing facility from RMB to support further build-outs and equipment upgrades.
The Competition Commission has concluded that the transaction is unlikely to substantially lessen competition, citing the presence of multiple local and international data center operators in South Africa. However, regulators are closely watching ownership and control of digital infrastructure, given its strategic importance.
A Tribunal ruling is expected in the coming weeks, and the outcome will be closely watched by infrastructure investors and technology firms operating in the region.
