Teraco raises R1.2bn in debt funding for further investment into South African data centres

Jan Hnizdo Teraco 1Jan Hnizdo, Teraco's chief financial officer. (Image source: Teraco)

Teraco, Africa's largest carrier and cloud neutral co-location data centre and home to NAPAfrica, Africa’s largest Internet exchange point (IXP), announced that it has raised a medium-term funding facility from Absa amounting to R1.2bn

Jan Hnizdo, Teraco’s Chief Financial Officer, says that this is a significant milestone for Teraco and that the funding is earmarked for further investments into data centre infrastructure.

“We will use the funding to further invest in the Teraco Campus in Isando. The site presently has 20MW’s of capacity, which needs to all be brought online. We have also purchased land adjacent to the existing site allowing for further expansion. In addition, a component of the funding has also been earmarked for the construction of Teraco’s new data centre in Bredell.”

Hnizdo says that the Bredell site has 24MW of power and more than 6000m2 of technical deployment space. It will eclipse the existing Teraco Campus from a power availability perspective. “Bredell will be the largest commercial data centre in Africa and Teraco, the largest commercial data centre operator in Africa”.

Teraco builds and operates co-location data centre facilities that enable clients to deploy telecommunications equipment and other key IT infrastructure in a scalable way. Teraco further provides clients with a secure environment where they are able to easily connect to submarine cable systems, African terrestrial networks, major African IP backbones and key content. 

“Teraco continues to experience high demand for its neutral data centre facilities, underpinned by strong growth in Internet penetration into Africa and increased cloud adoption by the enterprise sector,” says Lex van Wyk, CEO of Teraco.

The company has expanded its footprint over the last nine years to include four data centre facilities located in Cape Town, Durban and Johannesburg, which combined, at current facilities end-state will comprise 50MW of power and over 18,000m2 of data centre space.

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