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Digital Realty plans more African data centre investment after Teraco purchase

By David Whitehouse
Posted on Friday, 14 January 2022 12:21

Digital Realty CFO Andy Power. Photo supplied.

Global data centre provider Digital Realty Trust plans further investments in Africa after agreeing to buy South Africa’s Teraco, Digital Realty CFO Andy Power tells The Africa Report.

The company this month agreed to buy a majority stake in Teraco, Africa’s largest data centre platform, from investors including Berkshire Partners and Permira in a deal that values Teraco at about $3.5b. The company’s management, led by CEO Jan Hnizdo, will remain in place.

Africa has about 140,000 square metres of data centre space, the same as Switzerland. According to global real-estate consultancy Knight Frank, that will climb by 50% over the next five years, driven by digitisation and the roll-out of 4G and 5G infrastructure. Demand for African data centres will continue to expand in the 2030s as the population grows and Internet access widens, Knight Frank says.