IXAfrica Data Centre has secured a multi-tranche funding package from Rand Merchant Bank to expand its Nairobi campus, its CEO Snehar Shah said on Thursday.

“Closing this financing with RMB secures our next phase of growth and positions us to welcome more hyperscale and AI customers,” said Guy Willner, Chairman of iXAfrica.

In a phone call with The Kenyan Wall Street, CEO Snehar Shah confirmed that the company has identified the Kilifi Industrial Park as a viable point for expansion in the region. In 2021, the company raised US$50 million equity funding from Helios Capital to launch its NBOX1 facility in Nairobi, deploying Schneider Electric’s power and cooling systems to guarantee efficiency and resilience.

“This transaction reflects RMB’s commitment to supporting scalable, high-impact digital infrastructure across Africa,” said Corrie Cronje, Senior Transactor RMB, a division of banking giant FirstRand Limited.

Last year, the Kenya Internet Exchange Point (KIXP) established a peering point of presence at the iXAfrica site, boosting local interconnection and lowering latency for regional networks.

The company counts nearly 30 major networks among its anchor tenants, alongside multiple banks, enterprises, and two of the region’s key internet exchanges. The company has a strategic partnership to host Safaricom’s enterprise clients and is finalizing agreements with its first hyperscale customers.

East Africa’s data center market reached US$227 million in 2023 and is projected to nearly double by 2029, driven by surging cloud adoption, AI applications, and demand from global content providers.