Teraco Data Environments, Africa’s leading provider of carrier-neutral data center and interconnection solutions, announced today that Digital Realty, the world’s largest provider of cloud and carrier-neutral data center, colocation, and interconnection solutions, has entered into a definitive agreement to acquire a majority stake in Teraco from a consortium of investors led by Berkshire Partners and Permira.
Teraco, headquartered in Johannesburg and founded in 2008, is Africa’s largest provider of data center services.
In safe and resilient data centers, the company provides vendor-neutral colocation and related services.
The company maintains seven high-quality facilities with a combined critical power load of 75 megawatts, servicing over 600 clients across six core ecosystems – connection providers, managed service providers, cloud, content, enterprise, and financial services.
Teraco’s data centers are the most connected in Africa, with over 22,000 interconnects, enabling clients to connect directly to one another, to the onramps of all major cloud providers, and to the continent’s largest and fastest-growing Internet Exchange Point, NAPAfrica.
The Digital Realty merger creates a formidable combination that will ensure Teraco’s sustained access to funding for growth.
Being backed by a worldwide leader enables Teraco to leverage the global platform of Digital Realty and continue to build the Teraco ecosystem.
Teraco’s previous owners, who include private equity firms Permira and Berkshire Partners, will continue to keep a minority stake.
African data center providers will also gain in the coming years from the completion of major subsea internet cables backed by Google, Facebook’s parent company Meta, and other investors.
The transaction is the largest to yet in one of the world’s remaining major unexplored internet regions, where demand for connectivity and data is increasing as hundreds of millions of new phone users enter the market.