Digital Realty Trust: Digital Realty acquires 55% of Teraco and enters South Africa

Digital Realty has bought the majority stake in Teraco. The data center giant announced the acquisition of the South African data center company from a consortium of investors, including Permira and Berkshire Partners. The deal sees Teraco valued at about $3.5 billion. The transaction sees Digital Realty acquire 55% of Teraco. The remaining 45% will also be retained by existing investors, including Permira, Columbia Capital, Berkshire Partners LLC, and van Rooyen Group. In addition, the deal is expected to be completed in the first half of 2022. 

Teraco was founded in 2008, and it operates seven facilities across South Africa. It has a total capacity of 75MW while serving over 600 customers. The firm has plans for 187MW of capacity. According to Digital Realty, combining its existing facilities in Kenya and Nigeria with Teraco’s South Africa’s data center will help strengthen its pan-African position.