The chief executive officer of Medallion Data Centre Limited, Engr. Ikechukwu Nnamani, has said the acquisitions of datacdentre assets of Medallion Communication Limited in Nigeria and Teraco Data Environments of South Africa by Digital Realty of USA, is key to the Africa digital economy.
At the weekend, Digital Reality announced that it had completed the acquisition of controlling stake in Teraco, Africa’s largest datacentre operator, is good for the Africa datacentre markets.
The transaction which valued Teraco’s datacentre assets at $3.5 billion, represents the biggest datacentre transaction in the continent.
Teraco operates seven state-of-the-art facilities in key South African cities of Johannesburg, Cape Town and Durban, serving over 600 customers, including more than 275 connectivity providers, over 25 cloud and content platforms and approximately 300 enterprises.
Recall that in October 2021, Digital Realty acquired the datacentre assets of Medallion Communications Limited in Nigeria for N12.093 billion ($29 million). That marked the first time a global pure real estate investment trust (REIT) will be entering the country and beats rivals including Equinix, CyrusOne, and CoreSite Realty on entrance into the market.
With the additional acquisition of Teraco, Digital Realty now controls the two most important datacentre assets on the continent. The Medallion Datacentre is the number one peering and connectivity datacentre in Nigeria and Teraco represents the same in South Africa, two of the largest economies in the continent.
The combination of Teraco’s leading position in South Africa with Digital Realty’s leading connectivity hubs in Nigeria on the west and Kenya on the east coast – along with Digital Realty’s strategic Mediterranean interconnection hubs in Marseille and Athens – is expected to significantly strengthen Digital Realty’s leading pan-African position, enhancing the ability to serve local as well as multinational enterprises and service providers.
Speaking on the development, Nnamani stated the investment into Teraco by Digital Realty is a further testament that Digital Realty is fully commitment to grow the digital economy in not only Nigeria and the West African sub-region but also the whole of Africa.
This he stated will lead to significant foreign direct investment into the economy, boosting the GDP of the African countries, creating employment, and improving the quality of the lives of the citizens in the areas of education, healthcare, e-commerce, entertainment, security, governance, and agriculture amongst others.
With the digitisation of the economy and implementation of Internet of Things services, datacentres are essential to support these emerging services. Medallion’s Lagos data center is the leading connectivity hub in Western Africa with approximately 70 carriers and internet service providers, over 80 percent of the public peering traffic of the Nigerian Internet Exchange takes place at the carrier neutral datacentre.
Medallion offers access to all the exiting sub marine cables in Nigeria and additional subsea cables scheduled to be in operation in Lagos by 2023 are all expected to use Medallion as a peering point for content and bandwidth distribution.