Teraco gets US$167.2m loan funding for data centre construction

SOUTH AFRICAAfrica’s largest interconnection hub and vendor-neutral data centre provider Teraco Data Environments Proprietary Limited, has announced that it has finalised a new US$167.2 million loan financing transaction led by Absa.

The loan follows Teraco’s announcement in November 2020 regarding its construction of a new 38-megawatt hyperscale data centre in Ekurhuleni, east of Johannesburg, South Africa.

Teraco will use the funds raised together with internally generated cash to finance the building of the data centre.

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. 

He said 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.

“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”

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” said 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.

Teraco provides carrier and cloud neutral colocation data centres, and with over 18,500 cross-connects, is Africa’s most interconnected data centre hub.

As the first provider of highly resilient, vendor-neutral data environments in sub-Saharan Africa, Teraco brings global content closer to the digital edge.

With its world-class data centre infrastructure and network dense ecosystems, Teraco forms a vital part of the African Internet’s backbone and is an essential part of the modern enterprise’s digital transformation strategy.

Its ever-expanding ecosystems move Teraco beyond colocation and firmly establish it as an open marketplace for digital growth and innovation.

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