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Teraco lands R2.5M in funding round with Absa

The funds will construct a 38MW data centre in Ekurhuleni

Rendition of Turaco new data centre
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Teraco Data Environments just closed their biggest funding round securing R2.5-billion from Aba and several other lenders. The money will go into the development of a giant data center to the East of Johannesburg.

Teraco will channel the funds into the construction of a 38MW ‘hyperscale’ data center in Ekurhuleni. Internally generated cash will finance this construction. The newly appointed chief financial officer, Samuel Erwin, said this funding will cover several large institutions that have joined the lending group.

The new data centre will rest slightly off the R21 highway close to the Serengeti Golf & Wildlife Estate, currently under construction in anticipation of future demand from IT companies looking for ‘hyperscale’ cloud computing services. The aim is to have the facility serve both the South African and Subsaharan markets. It can also be argued that the new development is an expansion of Teraco’s Bredell data centre to the south which is already sold out. The main shareholders in this project are Berkshire Partners and Permira Holdings, thus far have raised over R6 billion in debt financing.

Last November, Teraco announced plans of breaking ground on a R4 billion data center facility to the north of Oliver Tambo International Airport. This new data center is the largest standalone centre in Africa covering  16 000sqm worth in IT space.

Teraco is Africa’s first vendor-neutral data center providing customers with low latency interconnection to cloud and content.

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