South Africa Deepens Digital Infrastructure with Teraco CT2 Expansion

Teraco, a subsidiary of Digital Realty, has strengthened South Africa’s role in Africa’s fast-evolving digital economy through the expansion of its CT2 hyperscale data centre in Cape Town. The upgraded facility now delivers an IT load of 50 megawatts, providing the power to run tens of thousands of servers simultaneously a critical boost for cloud computing, artificial intelligence, and data-driven industries across the continent.

Expanding Africa’s Computing Power

The development comes at a time when demand for digital infrastructure is accelerating across Africa. From financial institutions to logistics companies and public agencies, organisations are increasingly relying on cloud platforms and data analytics to improve efficiency and expand their reach. Teraco’s investment ensures that businesses can process and store their data locally, reducing latency while cutting dependence on facilities based overseas.

Jan Hnizdo, Teraco’s CEO, said the project is part of a bigger strategy to build digital resilience across the continent. “We’re focused on giving businesses reliable, secure, and scalable capacity to grow,” he said. The CT2 facility connects directly to global fibre-optic networks, including Google’s Equiano and Meta’s 2Africa cables, linking Cape Town to major international data routes and reinforcing South Africa’s position as a key gateway for digital traffic in and out of Africa.

Smarter, Sustainable Engineering

As Cape Town continues to face periodic water shortages, Teraco has taken a forward-looking approach to sustainability. The new CT2 facility operates with a zero-water cooling system that maintains ideal server temperatures without consuming fresh water. Artificial intelligence manages temperature and power use in real time, increasing efficiency and reducing waste. This approach places CT2 among the most environmentally responsible data centres on the continent, demonstrating that high-performance infrastructure can coexist with environmental stewardship.

The focus on sustainability also reflects a wider shift in how technology companies approach infrastructure development. As African cities modernize, data centres like CT2 are setting a new standard by integrating energy-efficient systems and circular resource management into their design and operations.

Reinforcing South Africa’s Tech Growth

Teraco’s expansion comes amid a surge of investment in South Africa’s data centre market, which was valued at $2.16 billion in 2024 and is projected to reach $3.4 billion by 2030. This growth is being driven by cloud adoption, fintech innovation, and global technology partnerships. Alongside Teraco, firms such as Equinix, MTN, Vodacom Business, and Africa Data Centres are scaling up capacity to meet the needs of a rapidly digitising economy. With CT2 now complete, Teraco’s total power capacity has risen to 189 megawatts across facilities in Cape Town, Johannesburg, and Durban, consolidating its leadership in Africa’s digital infrastructure landscape.

The CT2 expansion is a clear step toward strengthening Africa’s digital foundation. By combining powerful computing capacity with sustainable design and global connectivity, Teraco is helping to create the infrastructure needed for innovation, trade, and economic growth. Its continued investment reinforces South Africa’s standing as a continental tech hub and supports a new generation of businesses shaping Africa’s connected future.

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