The Chief Executive Officer of Medallion Data Center Limited, Engr. Ikechukwu Nnamani, has said that the acquisition of Teraco Data Environments of South Africa, in a transaction that valued its assets at $3.5bn by the USA-based cloud and carrier-neutral data centers, Digital Realty will boost the Gross domestic product, GDP, of the African countries.

While reacting to the development, Nnamani stated the investment into Teraco by Digital Realty is a further testament that Digital Realty is fully committed to grow the digital economy in not only Nigeria and the West African sub-region but also the whole of Africa. He said: “This 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 digitization of the economy and implementation of Internet of Things services, datacenters are essential to support these emerging services.”

Nnamani noted that Teraco is one of the largest and most densely interconnected data center platforms in Africa, with seven state-of-the-art facilities strategically located in the key South African metros of Johannesburg, Cape Town and Durban.

He stated: “It is worth noting that in October 2021 the Austin Texas, USA based Digital Realty also announced the acquisition of the datacenter assets of Medallion Communications Limited in Nigeria.

“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 data center assets in the continent. The Medallion Datacenter is the number one peering and connectivity datacenter 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,” Nnamani maintained.

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