As cloud spending continues to soar, technology companies are scrambling to meet the demands of the necessary infrastructure, and the growing need for AI computing only adds fuel to the fire.
As examples, Microsoft and BlackRock are establishing a $30 billion fund to support new data center and energy infrastructure for the burgeoning AI boom, and Meta is investing in new Plans call for a $10 billion undersea cable. Google recently announced Umoja, the first undersea fiber optic cable connecting Africa and Australia. And the company is participating in a $90 million funding round with Cassava Technologies, one of the partner companies involved in the Umoja project.
Google confirmed to TechCrunch that it is now acquiring a direct stake in Cassava, after its first data center in Africa has been operational for a year, amid infrastructure projects such as the Equiano submarine cable, but the rationale behind the investment is I didn't comment on it. . But it is clear that they are trying to improve infrastructure across the continent. In fact, Africa is experiencing large-scale power outages throughout 2024, blamed on faulty undersea cables, which Google hopes will fund efforts to better connect consumers and businesses who want to use its services. It's natural to think so.
Cassava announced total funding of $310 million, of which $220 million will be provided as a line of credit to one of its subsidiaries. The $90 million equity tranche included an investment from the U.S. federal government's International Development Finance Corporation (DFC). Finnfund is a Finnish development finance company. And Google itself. A press release, which also detailed the company's broader reorganization, said the funding will help Cassava “…strengthen its balance sheet, drive sustainable and profitable growth, and strengthen its position as a global technology company with African heritage.” It is said to help strengthen one's position.
“This is a pivotal milestone and we look forward to facilitating further expansion of digital infrastructure and services to bridge the continent’s digital divide,” said Cassava CEO and President. said Hadi Pemkhiva (pictured above).
current assets
African telecommunications company Econet spun out Cassava in 2021 to serve as an independent business for Econet's various digital services and infrastructure initiatives across data centres, fiber broadband networks, renewable energy, cloud, cybersecurity and more. Although Africa is a major focus for cassava, it also operates in other “key growth markets” such as the Middle East, India and Latin America.
Among its business units is Liquid Intelligent Technologies, which worked with Google to build Umoja's terrestrial segment. The cable will begin in Kenya, passing through the Democratic Republic of the Congo, Rwanda, Uganda, Zambia and Zimbabwe before ending overland in South Africa.
Separately, Cassava's other business unit, Liquid C2, announced earlier this year a partnership with Google and Anthropic to provide “advanced cloud, cybersecurity solutions, and generative AI” services to businesses across Africa. did. This was part of Google's previous commitment to invest $1 billion in Africa's digital economy.
“Businesses are increasingly turning to generative AI to drive operational efficiency, improve customer experiences, and empower employees like never before,” Google Cloud CEO Thomas Kurian said at the time. “We are working on a partnership with Liquid C2,” he said of the partnership with Liquid C2. “This partnership is an opportunity for us to transform the way African businesses serve and engage with their customers by providing the foundation for innovation.”