Teraco Taps Absa for $442M Loan to Build New Data Center in Africa
TLDR
- Teraco Data Environments Ltd. partners with Absa Group Ltd. for an 8 billion rand loan to build a new facility for AI applications, expanding capacity to 228 megawatts.
- The new facility will cater to hyperscaler specifications and incorporate liquid cooling to support AI infrastructure, led by CFO Samuel Erwin.
- Backed by South African asset managers, the financing round will fund the AI-ready facility, adding to Teraco's previous fundraising efforts for debt refinancing and data center expansion.
Teraco Data Environments Ltd., Africa's largest data-center operator, has enlisted Absa Group Ltd. to syndicate an 8 billion rand ($442 million) loan, as it prepares to build a new facility to meet surging demand for artificial intelligence (AI) applications.
This expansion will increase Teraco’s capacity to 228 megawatts, catering to hyperscaler specifications and incorporating liquid cooling to support AI infrastructure, according to CFO Samuel Erwin.
The financing round, led by Absa and backed by South African asset managers, will fund the new AI-ready facility. This builds on Teraco’s 2023 raise of 11.8 billion rand to refinance debt and complete another data center, set to go live in early 2025.
You can follow Daba’s reporting on Africa on WhatsApp. Sign up here
Key Takeaways
Teraco’s latest expansion reflects rising demand for data-center capacity in Africa, driven by the continent’s young, tech-savvy population and growing need for internet services. With only 2% of global data-center capacity, Africa offers a significant growth opportunity, expected to reach $7 billion by 2027. Teraco, acquired by Digital Realty Trust in a $3.5 billion deal, aims to maintain its lead in the African market amid competition from new players like Equinix and Amazon Web Services, who are also investing in African infrastructure.
Think someone else should see this?
To invest in this opportunity and other opportunities across Africa
Download the daba finance app on your mobile through
Take action.
Download app
Start investing in Africa’s best opportunities, including stocks, bonds, startups, venture funds, and more.
Partner with us
Unlock exciting business opportunities and growth potential.
Join Daba
Become a part of our vibrant community and enjoy exclusive benefits.
Contact us
Reach out to us for inquiries, support, or collaboration.