Cloud and data center solutions provider, Digital Realty, has today announced the completion of its agreement to acquire a majority interest in Teraco, a carrier-neutral data center and interconnection services provider in South Africa.

Valued at $3.5 billion, the newly completed transaction transfers the ownership stake of Teraco from a consortium of investors, including Berkshire Partners and Permira, to Digital Realty.

“We are very excited to complete this transformative transaction that positions Digital Realty as the premier data center and connectivity provider on the high-growth African continent,” said A. William Stein, Chief Executive Officer, Digital Realty.

“Today’s milestone gives us significant regional scale and access to a premier, high-quality portfolio in Africa’s largest market, enhancing our ability to serve growing customer demand for connectivity in the region. We’re thrilled to strengthen our global platform and deepen our commitment to investment in Africa, as we capitalize on the tremendous opportunity in the region.”

This transaction was initiated in January, with Teraco boasting of portfolio in Africa that includes seven data center facilities which are located in the South African metros of Johannesburg, Cape Town and Durban.

“Teraco has made significant progress in achieving our strategic objectives, including improving the connectivity and accessibility of our data centers, in supporting the rapid digital transformation in the region. Africa is poised to remain a high growth, high-demand area for data center solutions and our combined, diversified platform will further enable us to support our customers in the pan-Africa region and around the world,” said Jan Hnizdo, Chief Executive Officer, Teraco.

The acquisition of Teraco also adds South Africa to Digital Realty’s existing African footprints which include Kenya, Mozambique, and Nigeria – through the acquisition of Medallion Data Centre in October 2021.

With the completion of this acquisition, Teraco will now be known as Teraco: A Digital Realty Company.