Teraco will have spent R4.5 billion on data centres by the end of 2019

Teraco Data Environments Pty Ltd. plans to invest about 1 billion rand ($73 million) as Africa’s largest data-center operator expands infrastructure to meet rising demand.

The closely-held business will have spent 4.5 billion rand on building data-services centers in South Africa when the current investment cycle ends in 2019, Chief Financial Officer Jan Hnizdo said in an interview Tuesday.

Funding has come from a debt facility provided by Barclays Africa Group Ltd., also known as Absa, which is lending as much as 1.8 billion rand.

Teraco is investing to meet higher demand for data services in Africa as internet access improves and businesses adopt cloud-based technology.

Internet giants such as Netflix Inc. and Facebook Inc. are seeking to reach more remote parts of the continent, while Amazon.com Inc.’s Web Services and Microsoft Corp.’s Azure need data storage.

Teraco’s operations in Johannesburg are used by more than 200 African telecommunications providers and are able to provide 12,000 interconnections.


JB1 Campus expansion

In a statement to the media, Teraco added that it will focus its expansion plan on its JB1 Campus.

The company will expand the Teraco Isando Campus (JB1), due to increased demand for additional data centre capacity.

This is being driven by cloud uptake and enterprise organisations wanting to access the Teraco platform, it said.

“The expansion will occur in two phases. Phase 1, currently underway, will grow the facility by 2,000 cabinets, bringing the total JB1 Campus capacity to 5,700,” said Teraco.

“Total usable floor space will increase by 4,000 square metres, expanding to a total of 12,000 square metres across the data centre campus. The anticipated ready-for-service date is in Q3 2019.”

“A total of 60MW of power will be reticulated to the site, addressing requirements for further expansion after Phase 1 has been completed. The total power available to the Isando Campus will now reach 80MW.”

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Teraco will have spent R4.5 billion on data centres by the end of 2019