Teraco Secures R11.8B Loan for Sustainable Data Center Expansion in South Africa

Teraco: A Digital Realty Company, a leading carrier-neutral data centre and interconnection services provider in South Africa, has successfully concluded a syndicated loan facility worth R11.8 billion. The loan will finance the company’s continued growth and refinance existing debt, with a maturity date in December 2028 and a 2.9-year extension of the weighted average tenor.

The growth funding will be used to expand Teraco’s interconnection hubs located in Isando, Bredell, and Cape Town campuses and implement a significant renewable energy generation program aligned with the company’s Environmental, Social, and Governance (ESG) goals. Teraco’s new data centre prioritises sustainability, reducing environmental impact and energy consumption, and minimizing water usage.

As more enterprises and cloud providers seek world-class data centre facilities to support their digital transformation and cloud adoption strategies, Teraco’s investment in digital infrastructure offers a solution. Teraco enables organizations to scale their IT infrastructure dynamically, adopt hybrid multi-cloud architectures, and interconnect with strategic business partners within its platform ecosystem of global and local clients.

“As a leading carrier-neutral data centre and interconnection solutions provider, Teraco is dedicated to protecting, connecting, and growing the enterprises and ecosystems shaping Africa’s digital future sustainably and responsibly,” said Samuel Erwin, Chief Financial Officer at Teraco. “Our ESG goals form the cornerstone of how we grow our business, engage with employees and suppliers, support our clients, and minimize our impact on the environment.”

The syndicated loan, led by Absa, includes several large financial institutions and provides an avenue for further funding in the future. Teraco’s track record and Digital Realty’s majority shareholding and sustainability commitment have contributed to the continued appetite to fund the company. Digital Realty is a global investment-grade rated majority shareholder in Teraco that delivers industry-leading, energy-efficient colocation services while reducing the total cost of ownership for clients.

As the demand for sustainable solutions in the digital transformation and cloud adoption space continues to grow, Teraco’s investment in renewable energy and energy-efficient data centres sets it apart as a competitive advantage. The company’s commitment to sustainability and interconnection services makes it a valuable partner for enterprises looking to scale their operations sustainably and securely.

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Oluniyi D. Ajao
Oluniyi D. Ajao is an Internet Entrepreneur and Tech Enthusiast based in South Africa. Follow him on twitter @niyyie for more tech updates.

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