SA data-centre firm raises R1.2bn for African expansion

Barclays headquarters in London. (iStock)
Barclays headquarters in London. (iStock)

Johannesburg - Teraco Data Environments, which says it is the largest provider of data-centre services in Africa, said it raised R1.2bn ($90m) from South African lender Barclays Africa Group [JSE:BGA] to invest in information-technology infrastructure on the continent.

The closely held business will use some of the cash to complete the construction of a new data centre in eastern Johannesburg by the end of year, according to a statement e-mailed by the company on Tuesday.

Barclays Africa “understands our unique business model and the associated infrastructure funding requirements and timelines,’’ chief financial officer Jan Hnizdo said.

“The new site will be the largest commercial data centre in Africa.’’ Teraco is investing to meet higher demand for data services in Africa as internet access improves and businesses adopt cloud-based technology.

Wireless operators including South African market leaders MTN Group [JSE:MTN] and Vodacom Group [JSE:VOD] are seeing higher growth rates in data sales than traditional voice revenue.

Read Fin24's top stories trending on Twitter:

ZAR/USD
17.42
(-0.58)
ZAR/GBP
22.89
(-0.74)
ZAR/EUR
20.69
(-0.64)
ZAR/AUD
12.61
(-1.12)
ZAR/JPY
0.17
(-0.61)
Gold
2066.30
(+1.51)
Silver
29.05
(+8.23)
Platinum
1000.00
(+3.85)
Brent Crude
45.33
(+1.67)
Palladium
2212.63
(+2.24)
All Share
57656.69
(+0.05)
Top 40
53350.88
(+0.13)
Financial 15
9888.41
(-0.41)
Industrial 25
76178.50
(+0.02)
Resource 10
60086.05
(+0.49)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Do you think it was a good idea for the government to approach the IMF for a $4.3 billion loan to fight Covid-19?
Please select an option Oops! Something went wrong, please try again later.
Results
Yes. We need the money.
11% - 913 votes
It depends on how the funds are used.
74% - 6065 votes
No. We should have gotten the loan elsewhere.
15% - 1236 votes
Vote