The Competition Commission has recommended that Stanlib’s proposed acquisition of Cassava Africa Data Centres be approved unconditionally. In a statement issued Thursday, the Commission indicated that the transaction is unlikely to substantially lessen or prevent competition in any relevant market, and it does not raise significant public interest concerns.
This positive recommendation greatly enhances the prospects that the Competition Tribunal will approve the deal, paving the way for Stanlib’s acquisition of Africa Data Centres (ADC). Currently, ADC operates seven data centre facilities across Africa, serving over 400 enterprise and hyperscale customers. Its flagship facility, the Samrand Data Centre in Johannesburg, is widely regarded as Africa’s premier data centre.
Constructed in 2010 by Standard Bank–controlled by Stanlib Asset Management–the Samrand Data Centre was built at a cost of R1.6 billion and serves as Standard Bank’s primary data hub. The Tier 4 facility boasts its own electricity sub-station, along with fully redundant terrestrial, wireless, and satellite connectivity. Designed for maximum security and reliability, it features complete redundancy in power and cooling systems, making it one of the most advanced data centres in South Africa. Its high operational costs, however, placed financial pressure on Standard Bank, which struggled with maintenance costs averaging R1 million per month.
In 2020, Africa Data Centres acquired the Samrand facility from Standard Bank, marking a significant milestone in its growth. At the time, the deal was seen as potentially transformative for South Africa’s data centre and colocation market, consolidating ADC’s position as the largest interconnected, carrier- and cloud-neutral data centre provider across Africa. Former CEO Stéphane Duproz highlighted that the facility redefined regional, continental, and global data centre standards and further cemented Africa Data Centres’ leadership in digital infrastructure development.
The acquisition is expected to accelerate Africa’s digital transformation, with Duproz emphasizing that it “marks a significant extension to Africa Data Centres’ pan-Africa network and will further accelerate Africa’s digital transformation.” The Competition Commission’s approval signals a step closer to completing the deal, which aims to strengthen the continent’s data infrastructure and promote a more interconnected digital economy.
