Teraco increases debt facilities to 1.8 billion rand from ABSA
Cash will help boost capacity of Johannesburgh data center
Teraco Data Environments plans to invest about $73 Million 1bn as Africa’s largest data-centre operator expands infrastructure to meet rising demand.
The closely held business will have spent R4.5bn on building data-services centres in SA when the current investment cycle ends in 2019, chief financial officer Jan Hnizdo said in an interview on Tuesday. Funding has come from a debt facility provided by Barclays Africa Group, now known as Absa, which is lending as much as R1.8bn.
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 and Facebook are looking to reach more remote parts of the continent, while Amazon’s Web Services and Microsoft’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.