() – Data Center operator Digital Realty Trust said Monday it will buy a large stake in Africa-based Teraco, valued at about $ 3.5 billion, and offer to expand internationally due to pandemic fuel demand.
Blockchain and remote work have accelerated the transition to online ecosystems and cloud computing, which has increased the demand for data centers, which are physical locations where computers store and process data.
This has made data center operators a key platform for private investment since the pandemic, with both CyrusOne and QTS Realty Trust signing multibillion-dollar contracts in 2021 to exploit the boom and boost consolidation in the sector.
Digital Realty, which has more than 280 data centers around the world, said it would buy a 55% stake in a data center service provider in Africa from a consortium of investors, including Berkshire Partners and Permira.
The deal is expected to reduce Digital Realty’s fixed assets (FFO) by 1 percent per share in 2022 and add up after 2023.
Digital Realty chief executive William Stein said the deal would increase regional scale with “a network-intensive portfolio in South Africa’s most strategically important metropolitan areas”.
Chavi Mehta’s interview in Bangalore; Edited by Devika Syamnat