Teraco has secured R2.5 billion in financing for the construction of its new 38MW data centre in Ekurhuleni, South Africa.
The facility is called JB4 and will be the largest data centre in Africa once it is built.
The company said these funds will be used together with its own money to finance the building of the facility.
“Teraco will use the funds raised together with internally generated cash to finance the build,” Teraco said.
“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 Chief Financial Officer Samuel Erwin said 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.
He said 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 rand into South Africa’s digital infrastructure.
The funding transaction is led by Absa and includes several other large institutions, Teraco said.
“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” Erwin said.
Teraco said it is investing in delivering resilient and highly flexible infrastructure that offers businesses the ability to scale as network strategies evolve to secure a competitive advantage in their industries.
“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,” Teraco said.
Teraco’s data centre infrastructure and platform offer a direct private connection to leading cloud providers, allowing companies to deploy public, private, and hybrid cloud strategies with complete freedom of choice, the company said.
Phase one of the JB4 data centre is scheduled to be completed in Q1 2022 and the entire data centre will require a total investment of $250 million (R4 billion) to complete.
Images of what the new data centre development will look like after it is completed are shown below.