Ogi secures £45m funding to support next stages of fibre growth

Wales’s biggest alternative telecoms company (altnet), Ogi, has reached a deal on a £45m financing package from Cardiff Capital Region (CCR), alongside ongoing equity investment from its principal shareholder, Infracapital, to support the next stages in the company’s growth.

Securing its first round of investment from M&G plc infrastructure equity investment arm Infracapital, Ogi launched in 2021, bringing full-fibre connectivity, telephony and business IT services to underserved communities across Wales, as well as boosting the alternative options available in major cities, and new and emerging commercial zones.

Using a public-owned motorway and trunk road network, and through a network of dark fibre and micro-ducts, Ogi has been installing a diverse route into Wales over the Prince of Wales Bridge, creating a diverse connectivity route along the southeast section of the M4 corridor.

High-capacity fibre pairs and micro-ducts have been installed over the Prince of Wales bridge, from where they pass through the Vantage Data Centre on the edge of Newport and on to the Stadium House internet exchange in the centre of Cardiff.

The 70km route offers a mix of wholesale products, and the altnet plans to allow carriers, hyperscalers, datacentres and internet service providers (ISPs) looking to expand in and beyond the region to boost capacity and resilience. The products are designed to offer an alternative means to scale networks across the south of Wales, with capacity to grow and extend across South Wales and onto Ireland as demand increases.

Ogi said that each of its full-fibre communities will benefit from a capital injection of around £5m, with the long-term economic impact estimated to be worth almost £5 for every £1 invested.

The latest funding package will see Ogi spread its reach in 10 CCR local authority areas – namely Blaenau Gwent, Bridgend, Caerphilly, Cardiff, Merthyr Tydfil, Monmouthshire, Newport, Rhondda Cynon Taf, Torfaen and the Vale of Glamorgan – where it already has an established presence.

CCR also includes Ogi’s multimillion-pound high-capacity network spanning the South Wales trunk road into England.

Built to service the growing need for cloud computing, artificial intelligence and data storage, and serving the fast-growing fintech and creative sectors, among others, the diverse route also increases Wales’s appeal to datacentre operators, mobile carriers and hyperscalers.

“Right from the start, our ambition has been to become a leading Welsh telecoms company, and the last few years have certainly laid strong foundations for that goal,” said Ogi CEO Ben Allwright.

“With key strategic sites like Aberthaw to the south and the heads of the valleys to the north, there’s massive potential across the capital region – and partnering with CCR at such an exciting time in their own development is the next logical step for Ogi’s growth in southeast Wales. Together with further investment from our principal shareholder, Infracapital, this is yet another endorsement of our mission to make sure no Welsh community gets left behind.”

Previously announced programmes in communities outside of the 10 local authority areas that make up the CCR – including Pembrokeshire – will continue as planned.

“Ogi has taken regeneration to a new level with its initial investment – connecting communities to new possibilities right across the Cardiff Capital Region and beyond,” said CCR chair Mary Ann Brocklesby. “Our investment into Ogi recognises that ongoing commitment to boosting the region, and the work already being done to bring vital connectivity to some of Wales’s biggest towns and villages.”