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Stanlib, the asset management arm of Standard Bank Group, is stepping further into the data center business with a proposed acquisition of Africa Data Centres, a unit of Cassava Technologies.
South Africa’s Competition Commission has recommended that the deal be approved, clearing an important regulatory checkpoint. The matter now goes to the Competition Tribunal, which will make the final decision.
At the heart of the transaction is the Samrand Data Centre, a large facility near Johannesburg that sits between the city and Pretoria. Africa Data Centres previously bought the site from Standard Bank and expanded it under Cassava’s ownership, according to the Competition Commission’s summary of the case. Financial terms were not made public.
The move reflects a broader shift in how big investors are looking at digital infrastructure. Data centers are increasingly being treated like traditional infrastructure, the sort of assets that can generate steady income over long periods. Tenants often sign multi year contracts, and the customers tend to be cloud providers, telecom operators and large companies that need secure space to run and store data.
That is the appeal for pension funds and insurers hunting for stable returns that can hold up over time. Data centers can be expensive to build and power, but once operating, they can provide predictable cash flows if demand stays strong.
Demand has been climbing across Africa as businesses move more services online and as global technology companies expand cloud operations closer to users. Operators also point to the growing computing load driven by artificial intelligence, which requires more processing power and more reliable storage.
Africa Data Centres has built a footprint across the continent, with a mix of large hyperscale sites and smaller edge facilities in Southern, East and West Africa. The business is part of Cassava Technologies, a group linked to Zimbabwean entrepreneur Strive Masiyiwa, and it benefits from Cassava’s wider network, including connectivity built through Liquid Intelligent Technologies.
In South Africa, Cassava has presented the Samrand site as a key hub, backed by upgrades to increase capacity and modernize systems. Beyond that, the group has pitched Africa Data Centres as a platform for wider expansion. Cassava announced in 2021 that it planned to invest $500 million to develop up to 10 hyperscale data centers in markets including South Africa, Nigeria, Kenya, Morocco and Egypt. It also secured a 2 billion rand financing facility in 2024 from RMB to support build outs and equipment upgrades.
Stanlib’s interest is not entirely new. The firm announced an initial investment in Africa Data Centres about three months ago, a sign that it was already building exposure to the sector. The proposed acquisition suggests a phased approach, rather than a single leap, at a time when power constraints, construction timelines and imported equipment costs can quickly change project economics.
Competition authorities said the transaction is unlikely to substantially lessen competition, noting that South Africa has a range of local and international data center operators. Still, regulators and policymakers are watching ownership and control of digital infrastructure more closely. Data centers underpin banking systems, government platforms, online commerce and telecom networks, making them strategic assets in an economy that is increasingly dependent on data.
A Tribunal ruling is expected in the coming weeks, and the outcome will be closely watched by both infrastructure investors and technology firms operating in the region.
