Teraco reveals 2012 capex spend
Teraco Data Environments, a provider of colocation data centres, says its capital expenditure (capex) will amount to around R80 million, as more businesses migrate to the cloud.
Last year Teraco raised R158 million in series C financing and included a combination of both equity and debt, with International Finance Corporation – a member of the World Bank Group – becoming an equity shareholder in Teraco, and the Development Bank of Southern Africa (DBSA) providing R80 million of senior debt.
The group said the money would be used for expansion, where its Johannesburg colocation data centre would be expanded to three times its current size and two new colocation facilities would be opened in Durban and Cape Town.
Company MD and co-founder, Lex van Wyk, told BusinessTech that Teraco’s Johannesburg colocation data centre is in final process of extending to approximately 4,000 square metres, while Durban phase one was already completed to 600 square metres.
He said that the Cape Town 2 project has been delayed, but the group is in the process of extending Cape Town 1 by approximately 100 square metres.
“We have achieved most of our plans and we will see this continue over the next few years. We will see more businesses move towards cloud, but my personal feeling it will be only the start to a big mind shift in years to come,” van Wyk said.
The company lead said that sub-marine capacity landings would drive growth in the sector over the next few years, along with international carriers and content providers coming into the country.
Van Wyk said that Teraco faced challenges under the current economic climate, namely, “slower growth amongst our clients. Management moves towards sustainability and planning for when the situation improves. I believe it will and we need to be ready for it,” he said.
On potential disruptive innovation in 2012, van Wyk said: “Mobile data might bring a few surprizes”.
Loading ...