Teraco, a subsidiary of Digital Realty and a prominent provider of data centre services in Africa, has launched the construction of a new hyperscale data centre named JB7 at its Isando Campus in Ekurhuleni, east of Johannesburg. The project, which is set to enhance the company’s capacity by 40 megawatts (MW), is backed by a significant R8 billion syndicated loan.
Scheduled for completion in 2026, the JB7 facility aims to meet the burgeoning demand for data centre capacity from enterprises and cloud service providers across the continent. This development will increase the critical power load at the Isando Campus to 110MW, making it a pivotal part of Africa’s digital infrastructure.
Jan Hnizdo, CEO of Teraco, highlighted the strategic importance of the project, stating, “South Africa serves as a digital gateway for Africa, bolstered by substantial investments in undersea cables. This expansion not only aids local enterprises but also supports global cloud providers in reaching further into sub-Saharan markets.”
The JB7 data centre is designed with an emphasis on sustainability. It will feature advanced cooling technologies, including a closed-loop chilled water system and direct free-air cooling, aiming for industry-leading Power Usage Effectiveness (PUE) and Water Usage Effectiveness (WUE). These innovations are expected to drastically reduce energy consumption and water usage, aligning with global trends towards environmentally responsible data centre operations.
Funding for JB7 comes from a newly secured R8 billion syndicated loan arranged through Absa and other financial institutions. This financial strategy also supports Teraco’s broader renewable energy initiatives, including a 120MW solar PV plant intended to supply power to the national grid.
Samuel Erwin, Chief Financial Officer at Teraco, expressed gratitude for the financial backing, noting, “The support from our financial partners reflects confidence in our growth strategy and our commitment to environmental, social, and governance goals.”
The new data centre will be a significant addition to Teraco’s portfolio, which already includes facilities across Johannesburg, Cape Town, and Durban. With this expansion, Teraco’s total capacity will reach 228MW, reinforcing its position as a leader in Africa’s data centre industry.
Teraco’s ongoing projects underscore the increasing demand for robust digital infrastructure in Africa, driven by the growth in cloud computing, artificial intelligence, and the digital transformation of businesses. The company’s focus on sustainability and innovation continues to set benchmarks for data centre operations in the region.
