Teraco Data Environments Proprietary Limited, Africa’s largest interconnection hub and vendor-neutral data centre provider, has announced that it has finalised a new R2.5 billion loan financing transaction, the facility is called JB4, official report noted.
Teraco CEO Jan Hnizdo said: “The first phase of the JB4 data center is expected to be completed in the first quarter of 2022 and the entire data center will require a total investment of $ 250 million (Rand 4 billion) to complete.”
According to report, this 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 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 Chief Financial Officer, Samuel Erwin, noted 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 says 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”
Teraco is making significant investments in providing access to digital infrastructure that is both resilient and highly flexible at this time of enterprises focussing on cloud adoption strategies. 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.