Teraco Data Environments, one of Africa’s biggest data centres and Internet exchange point (IXP), managed to secure a massive R400 million in funding.
What makes this investment significant, beside the fact that it is almost half a billion rand, is that the company will use the extra cash to upgrade and further invest in its data centre infrastructure.
“This is a further significant milestone for Teraco. This facility, together with internally generated funds are earmarked for continuing our large scale investments into Data Centre Infrastructure roll-outs,” says Jan Hnizdo, Teraco’s CFO, said in a media statement.
Teraco is responsible for key IT infrastructure and plays a big role in assisting clients to roll out their own telecommunications equipment. The company is also responsible for connecting businesses to various submarine cable systems.
Lex van Wyk, CEO of Teraco, explained that as more things become connected to the internet and connectivity gets cheaper, not only in Africa but across the world, it has never before seen such a demand.
“Teraco’s premium data centre services are in high demand, and the demand is set to continue underpinned by strong growth in the Internet and increased cloud adoption.”
Teraco has been on an upgrading drive for the last three years, and the company explained that in the past it has added three state-of-the-art data centres located in Cape Town, Durban and Johannesburg. It also built a 10 MVA power plant, powering over 6 000m2 of data centre space.
“Telecommunications is an exciting industry to be in right now – it is at the heart of the explosive innovation and growth centred around the Internet – and Teraco has rapidly evolved into being the internet exchange point (IXP) and connectivity hub for sub- Saharan Africa. The securing of the additional Barclays Capital funding will allow Teraco to remain a significant contributor in the industry,” van Wyk concludes in a media statement.