Teraco

Digital Realty raised its stake in Teraco from approximately 61% to 77% on 22 June, paying roughly $650m through new share issuance in a transaction that also brought Columbia Capital, a US digital-infrastructure investor, in for about $485m. Teraco is Africa's largest data-centre and interconnection platform, running the dominant carrier-neutral campuses in South Africa, Nigeria, and Kenya, the three markets where African internet traffic most concentrates.

Digital Realty first invested in Teraco in 2020 and has steadily consolidated its position as the African market matured. Teraco's campuses are colocation facilities where multiple telecoms carriers, internet service providers, and cloud platforms physically interconnect their networks: what they sell is interconnection reach, not cheap power or raw floor space. That network-density positioning is distinct from the hyperscale builds constrained by US grid queues and hardware shortages. South Africa hosts the continent's largest internet exchange; Nigerian and Kenyan campuses extend Teraco's reach across West and East Africa.

The transaction sends colocation consolidation money deeper into a frontier market at a moment when US data-centre capacity is stalled on tax disputes and transformer lead times stretched to four years. Digital Realty is deepening a position in interconnection infrastructure it already controls rather than queueing for new American grid connections, a contrast with peers such as Equinix whose Western pipeline faces the same supply-chain constraints. Teraco's reach positions Digital Realty as the infrastructure layer beneath Africa's growing cloud and enterprise connectivity demand.