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Teraco Unveils 40MW data centre expansion, and a new R8B Loan

Teraco, part of Digital Realty, has begun construction on a new 40 MW hyperscale data center, JB7, at its Isando Campus in Ekurhuleni, Johannesburg. Funded by an R8 billion syndicated loan, this project aims to strengthen Teraco’s leadership in Africa's data centre industry.

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Jan Hnizdo
Teraco
CEO

Samuel Erwin
Teraco
CFO

Teraco, part of Digital Realty, has begun construction on a new 40 MW hyperscale data center, JB7, at its Isando Campus in Ekurhuleni, Johannesburg. Funded by an R8 billion syndicated loan, this project aims to strengthen Teraco’s leadership in Africa’s data centre industry. Scheduled for completion in 2026, JB7 will feature advanced sustainable cooling and water management systems to support increasing demands from enterprises and cloud service providers. This expansion will boost the Isando Campus’s capacity to 110 MW.

CEO Jan Hnizdo emphasizes South Africa’s role as a crucial technology hub for sub-Saharan Africa thanks to substantial investments in undersea cables like Equiano and 2Africa. These infrastructure projects facilitate global cloud providers’ expansion throughout the region. Teraco is committed to supporting digital transformation across Africa by growing its data centre footprint, providing open access interconnection, and offering industry-leading infrastructure to its clients.

“South Africa is a springboard for cloud provision into Africa and, as a result, has become sub-Saharan Africa’s technology and data centre hub. Massive global investments into undersea cables, like Equiano and 2Africa, further strengthen this position. This will enable global cloud providers to service the South African market and the rest of the sub-Saharan African region.”
 
“Teraco is focused on growing its capacity footprint across its core hubs. We ensure our clients have the flexibility to scale and take advantage of the digital transformation across sub-Saharan Africa. We continue to invest significantly in the region’s ICT infrastructure and have built Africa’s largest data centre platform. We take pride in enabling open access interconnection and providing world-class data centre infrastructure for all our clients,” he says.

Strategically located in Ekurhuleni’s Aerotropolis, JB7 will be Teraco’s ninth data centre, enhancing access to Platform Teraco, which includes over 250 network providers and global cloud on-ramps. This facility supports sub-Saharan enterprises’ digital strategies and fosters innovation by enabling global cloud providers’ increased presence.

Designed with sustainability as a priority, JB7 will incorporate state-of-the-art cooling systems that use a closed-loop chilled water system and direct free-air cooling. These features aim to achieve leading PUEs and WUEs, minimizing energy and water use required for high-density cloud and AI deployments. JB7 will increase Teraco’s total data centre capacity to 228 MW, which includes campuses in Isando, Bredell, Cape Town, and Durban.

The R8 billion syndicated loan, secured with Absa and other financial institutions, supports Teraco’s renewable energy projects, including a 120 MW solar PV plant. According to CFO Samuel Erwin, this financing reflects confidence in Teraco’s growth trajectory and commitment to ESG goals. He highlights Teraco’s dedication to integrating renewable energy in data infrastructure to support sustainable growth in Africa’s digital future.

Teraco enables organizations to scale IT infrastructures, adopt hybrid multi-cloud systems, and interconnect with key partners within its ecosystem. Businesses seek scalable solutions aligned with sustainability goals, providing a competitive edge in the connected world.

Key details of JB7:

A 71,000 sqm structure with 68 MVA utility power, offering 40 MW critical power.

Located at Isando Campus, alongside JB1, JB3, and JB5, Africa’s most interconnected site.

To be built in a single phase with eight 1,500 sqm data halls.

Will meet global hyperscale requirements and have several ISO certifications.

Features eco-friendly designs to optimize water use and energy efficiency.

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