Teraco to spend R2bn as demand for internet-based services grows
The data-centre provider will use the money, raised from Absa, to expand its Johannesburg-based data centres and double its staff complement
Data centre provider Teraco plans to spend R2bn to grow its business in the next two to three years as it expects the demand for internet-based services to continue. The group will also double its employees to 200 during the same period.
On Tuesday, the company announced it had raised R1.2bn from Absa to expand its Johannesburg-based data centres. "We will use the funding to further invest in the Teraco Campus in Isando. The site presently has 20MW of capacity, which needs to all be brought online. We have also purchased land adjacent to the existing site allowing for further expansion," said Teraco’s chief financial officer Jan Hnizdo.
The data centre in Isando services more than 350 clients. Teraco builds and operates colocation data-centre facilities that enable clients to deploy telecommunications equipment and other key IT infrastructure. It has four centres, in Johannesburg, Durban and Cape Town.
A component of the new funding has also been earmarked for the construction of Teraco’s new data centre in Bredell, to the east of Johannesburg. Hnizdo says the Bredell site has 24MW of power and more than 6,000m² of technical deployment space and will eclipse the existing Teraco Campus from a power availability perspective.
"Bredell will be the largest commercial data centre in Africa and Teraco the largest commercial data centre operator in Africa," Hnizdo said. Teraco also enables clients to connect to submarine cable systems, local terrestrial networks, and key content aggregation hubs.
"Teraco continues to experience high demand for its neutral data-centre facilities, underpinned by strong growth in internet penetration into Africa and increased cloud adoption by the enterprise sector," said Teraco CEO Lex van Wyk.