African data center operator Raxio is set to expand its footprint into Tanzania later this year, marking another step in the company’s broader push to address the continent’s growing digital infrastructure needs. The planned facility, named TZ1, will be located on the outskirts of Dar es Salaam, approximately 30 minutes from the city’s Central Business District. The company did not disclose the exact address, but confirmed the site is positioned to serve the commercial and financial hub of East Africa.
The TZ1 data center will offer 6MW of critical IT capacity across 4,000 square meters (43,055 square feet) of white space. This capacity positions the facility to support the increasing demand for cloud services, content delivery, and enterprise digital transformation in Tanzania, a market where data center penetration remains relatively low compared to other parts of the continent.
Raxio’s expansion comes on the heels of a significant capital injection. The company announced yesterday that infrastructure investors Meridiam and Roha have provided an additional $30 million in equity, bringing the total committed capital backing Raxio to $380 million. This latest funding builds on a previous $350 million in capital commitments from the World Bank Group’s International Finance Corporation (IFC), as well as debt financing from France’s development finance arm Proparco and the Emerging Africa and Asia Infrastructure Fund.
The company also reported that it signed contracts for “six times more power” during the first half of this year compared to the same period last year, signaling a sharp acceleration in customer demand across its existing markets. Raxio currently operates data centers in Angola, the Ivory Coast, the Democratic Republic of Congo, Ethiopia, and Mozambique, in addition to its new Tanzanian project.
The addition of TZ1 is expected to strengthen Tanzania’s position as a regional digital hub, while also providing local enterprises and global cloud providers with a carrier-neutral colocation option. As more international tech companies expand into Africa, the availability of reliable, locally hosted infrastructure is becoming increasingly critical for reducing latency and ensuring data sovereignty.