Teraco secures US$167 million funding for data centre construction

Teraco secures US$167 million funding for data centre construction

Africa’s largest interconnection hub and vendor-neutral data centre provider, Teraco Data Environments, has announced that it has secured a new US$167 million loan financing transaction for the construction of its data centre.

This development follows the company’s announcement in November 2020 regarding its construction of a new 38 megawatt hyperscale data centre in Ekurhuleni, east of Johannesburg, South Africa, which will be the largest in Africa.

Teraco will use the funds raised together with internally generated cash to finance the build. The new transaction cements Teraco’s commitment to continuing investment in the region’s digital infrastructure and expanding Africa’s largest data centre platform.

Teraco’s newly appointed Chief Financial Officer, Samuel Erwin, said 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. Erwin joined the company in 2020, bringing with him a wealth of corporate and investment banking experience where he led a team responsible for providing debt financing to clients across the African continent.  

Samuel added that 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. 

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. 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,” says Erwin. 

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.  

Platform Teraco provides enterprises with a direct private connection to all leading cloud providers in the most latency efficient, secure and resilient manner possible. Enterprises can deploy their private, public and hybrid cloud strategies on Platform Teraco, which allows for complete freedom of choice from a cloud provider perspective, as well as significantly reducing the time and cost for enterprises to access these cloud platforms.