With cloud spending on an upward trajectory, tech enterprises are feverishly striving to fulfill the escalating demand for essential infrastructure. The burgeoning need for AI compute is further intensifying this race. For instance, Microsoft and BlackRock have come together to establish a $30 billion fund aimed at supporting new data centers and energy infrastructure in response to the booming AI market. Meta is also making significant moves by planning a new $10 billion subsea cable that will encircle the entire globe. Google, in its turn, recently unveiled Umoja, the first subsea fiber-optic cable connecting Africa and Australia. It has also joined a $90 million funding round for Cassava Technologies, one of the partner companies in the Umoja project.
Google's African Infrastructure Investments
Google's first African data center has been operational for a year, and along with other infrastructure projects like the Equiano subsea cable, it has confirmed to TechCrunch that it is now taking a direct equity stake in Cassava. Although it did not provide reasons for this investment, it is evident that the company aims to enhance infrastructure across the continent. Africa has witnessed widespread outages throughout 2024, which have been attributed to faulty undersea cables. Hence, it is logical for Google to fund efforts to strengthen connectivity for both consumers and businesses that might utilize its services.Cassava has announced a total of $310 million in funding. Of this, $220 million is in the form of a credit facility for one of its subsidiaries. The $90 million equity tranche includes investments from the U.S. federal government's International Development Finance Corporation (DFC), Finnish development finance company Finnfund, and Google itself. This funding will assist Cassava in strengthening its balance sheet, driving sustainable profitable growth, and solidifying its position as a global technology company with African roots, as detailed in a press release that also outlined a broader reorganization of the company."It is a crucial milestone that we anticipate will unlock significant value and stimulate the further expansion of our digital infrastructure and services to bridge the digital divide on the continent," stated Cassava CEO and President Hardy Pemhiwa.Liquid Assets and Business Units
African telecommunication company Econet spun off Cassava in 2021, establishing it as a standalone business for Econet's diverse digital services and infrastructure initiatives. These include data centers, fiber broadband networks, renewable energy, cloud, cybersecurity, and more. Africa is a major focus for Cassava, but it also operates in other "key growth markets" such as the Middle East, India, and Latin America.One of Cassava's business units is Liquid Intelligent Technologies, which collaborated with Google to build the terrestrial segment of Umoja. The cable begins in Kenya and traverses through the Democratic Republic of the Congo, Rwanda, Uganda, Zambia, and Zimbabwe before reaching its destination in South Africa.Separately, another business unit of Cassava, Liquid C2, announced a partnership with Google and Anthropic this year to bring "advanced cloud, cybersecurity solutions, and generative AI" services to companies across Africa. This formed part of Google's previous commitment to invest $1 billion in Africa's digital economy."Businesses are increasingly relying on generative AI to enhance operational efficiencies, improve the customer experience, and empower their employees like never before," said Google Cloud CEO Thomas Kurian regarding the partnership with Liquid C2. "This partnership has the potential to transform how African businesses serve and engage their customers as we provide them with a foundation for innovation."
