Johannesburg, South Africa – Teraco: A Digital Realty Company, a leading carrier-neutral data centre and interconnection services provider in South Africa, today announced the conclusion of a syndicated loan facility worth R11.8 billion, of which R5.7 billion will be used to finance the company’s continued growth and R6.1 billion will refinance and extend the average maturity profile of existing drawn debt. The new facilities mature in December 2028, providing a 2.9-year extension of the weighted average tenor.

The growth funding is for the expansion of Teraco’s key interconnection hubs located within the Isando, Bredell, and Cape Town campuses, and a significant renewable energy generation programme aligned to the company’s long-term Environmental, Social and Governance (ESG) goals. Teraco’s new data centre builds are designed to put sustainability first, minimise environmental impact, reduce energy consumption, and minimise water usage.

Teraco’s investment in digital infrastructure supports the growing demand by enterprises and cloud providers for world class data centre facilities. Enterprises are accelerating their digital transformation strategies and placing a greater focus on cloud adoption strategies. Organisations working to accelerate their digital transformation use Teraco to dynamically scale their IT infrastructure, adopt hybrid multi-cloud architectures, and interconnect with strategic business partners within the Platform Teraco 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. As we continue our journey, our ESG goals form the cornerstone of how we grow our business, engage with employees and suppliers, support our clients, and minimise our impact on the environment,” says Samuel Erwin, Chief Financial Officer at Teraco.

“We are committed to managing our environmental impact sustainably by optimising our use of energy and natural resources. We remain focused on efforts to create energy-efficient data centres that address our environmental challenges, and we’re grateful for the continued support from partners that share our vision,” he adds.

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

As most enterprise organisations accelerate their digital transformation strategies and place greater focus on cloud adoption strategies, these same businesses are looking for the ability to scale in a sustainable way. This is a source of competitive advantage in a world where fast and secure interconnection with strategic business partners is a priority.

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About Teraco

Teraco, a leading carrier-neutral colocation provider in Africa, is the first provider of highly resilient, vendor-neutral data environments in sub-Saharan Africa. With its world-class data center infrastructure and network-dense ecosystems, Teraco forms a vital part of the African Internet’s backbone and is essential to the modern enterprise’s digital transformation strategy. Teraco is part-owned by Digital Realty (NYSE: DLR) – offering customers a global data center platform designed to enable digital business to scale within a highly connected data community across 300+ data centers in 50+ metros and 27 countries on six continents – and a consortium of private equity investors, including Berkshire Partners LLC and Permira. For more information, please visit teraco.co.za or follow us on LinkedIn and Twitter.

About Digital Realty

Digital Realty brings companies and data together by delivering the full spectrum of data center, colocation and interconnection solutions. PlatformDIGITAL®, the company’s global data center platform, provides customers with a secure data “meeting place” and a proven Pervasive Datacenter Architecture (PDx™) solution methodology for powering innovation and efficiently managing Data Gravity challenges. Digital Realty gives its customers access to the connected communities that matter to them with a global data center footprint of 300+ facilities in 50+ metros across 27 countries on six continents. To learn more about Digital Realty, please visit digitalrealty.com or follow us on LinkedIn and Twitter.