Africa's largest data center firm raises $91M for growth
(Bloomberg) -- Teraco Data Environments, which says it is the largest provider of data-center services in Africa, said it raised 1.2 billion rand ($90 million) from South African lender Barclays Africa Group Ltd. 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 center 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 center 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 Ltd. and Vodacom Group Ltd. are seeing higher growth rates in data sales than traditional voice revenue.