Teraco Data Environments, Africa’s largest interconnection hub and vendor-neutral data centre provider, is set for massive expansion after raising R2.5-billion in loan financing. The financing, together with internally generated cash, will fund construction of a new 38-megawatt hyperscale data centre in Ekurhuleni, east of Johannesburg. The construction was announced in November 2020.
Teraco’s newly appointed chief financial officer, Samuel Erwin, says that the shareholders and lenders of Teraco have a long-term vision for Africa’s digital transformation and support its continued investment in data centre infrastructure to serve the sub-Saharan African market.
“This funding round, and continued investments in data centre construction, align with Teraco’s support of the South African Government’s investment drive and Teraco’s 2020 commitment to invest billions of Rands into South Africa’s digital infrastructure,” he says.
The funding transaction, led by Absa, includes several large institutions that have joined the lending group, with a view to creating long term partnerships that will support Teraco’s future expansion plans.
“Absa has continued along the growth path with Teraco,” says Erwin. “Their understanding of our business model and funding requirements and ability to offer tailored funding solutions to suit our needs has contributed to Teraco’s success.
“At a time of enterprises focussing on cloud adoption strategies, Teraco is making significant investments in providing access to digital infrastructure that is both resilient and highly flexible. This offers enterprises the ability to scale as network strategies evolve in a world where fast and secure interconnection with strategic business partners is a source of competitive advantage.”
Organisations working to accelerate their digital transformation utilise Teraco to scale their IT infrastructure, adopt hybrid and multi-cloud architectures and interconnect with strategic business partners within the Platform Teraco ecosystem of over 600 global and local clients.
Teraco provides carrier and cloud-neutral colocation data centres, and with over 18 500 cross-connects, is Africa’s most interconnected data centre hub.