Dashen Bank has rolled out a data centre for nearly a quarter of a billion Birr. Installed by two local firms, the centre is expected to enhance networking and security systems at one of the country's oldest private commercial banks.

IPCOM Technologies, in business since 2010, built the data centre, while eSafe IT Solutions Plc, incorporated in 2017, installed the networking and security facilities. The two firms were among the seven companies that responded to Dashen's call for expression of interest a year ago. It took them eight months to complete construction and installation works, with the centre having the capacity to store five years of the Bank's data.

It comprises 46 racks, cooling systems, uninterruptible power supply (UPS) units, and generators. A single rack can host over 100 servers.

The centre requires close to 700kw of electric power to operate.

Incorporated with a paid-up capital of three million Birr, IPCOM bought the data centre components and hardware from Chinese tech giant Huawei. The company has previously been involved in similar projects at other financial institutions, including the Cooperative Bank of Oromia, Zemen Bank, and Amhara Credit & Savings Institution. Dashen Bank paid IPCOM 160 million Br.

Founded in 1987, Huawei has had a significant presence in the Ethiopian market over the past decade. It was behind Ethio telecom's data centre launched last year. It is also heavily involved in the state telco's 41 million dollars 5G network.

The data centre business is booming, as several are under development at the Addis Abeba ICT Park on the capital's eastern outskirts. Five companies, including Wingu.Africa, the Raxio Group, and RedFox Solutions, have broken ground on the construction of their facilities in the park. Wingu.Africa, an international data centre developer and subsidiary of a parent company incorporated in Mauritius, is owned by founders from Cyprus and the United Kingdom. Africa Capital Works, an investment fund, holds a stake in the company.

It began developing its data centre in Ethiopia two years ago on a 15,000sqm plot. The company has completed the first phase of its project; the second is underway.

“The market for data centres is enormous,” said Nicholas Lodge, chief strategy officer for Wingu.Africa.

Three months ago, Wingu.Africa signed lease agreements with five companies, including Goh Betoch Bank and the Bank of Abyssinia.