According to DCD, Teraco has completed the expansion of its CT2 data center in Cape Town’s Brackenfell area, pushing the facility’s total critical IT load to 50MW. The Digital Realty-owned company also announced it’s starting work on expanding its original CT1 facility in Rondebosch, adding 1,000 sqm of data hall space and 2MW of capacity by early 2027. CEO Jan Hnizdo said the CT2 expansion meets demand for hyperscale infrastructure in Africa, while the CT1 upgrade strengthens their commitment to Cape Town’s digital future. Teraco’s original CT1 facility, located in the Great Westerford building they acquired in 2023, currently offers 3MW across 2,500 sqm. At full expansion across all locations, Teraco’s portfolio will reach 191MW capacity, with the Cape Town campus contributing 55MW of that total.
The African data center arms race heats up
Here’s the thing about Teraco’s expansion – it’s not happening in a vacuum. Africa’s digital infrastructure market is exploding, and everyone’s trying to grab a piece. When Digital Realty acquired a majority stake in Teraco back in January 2022 at a $3.5 billion valuation, that was basically them planting a flag in African soil. Now they’re doubling down.
What’s really interesting is the timing. They announced CT2 Phase II plans in November 2023 and already completed it? That’s moving at hyperscale speed. And expanding the original CT1 facility that started their journey back in 2008? That’s sentimental and strategic all at once. They’re basically saying “we’re not abandoning our roots while we chase the big cloud providers.”
What these capacity numbers actually mean
Let’s break down these numbers because they’re staggering. CT2 going from 18MW to 50MW? That’s nearly triple the capacity. And CT1 jumping from 3MW to 5MW might seem smaller, but it’s a 67% increase for their flagship original facility. When you look at the full portfolio heading toward 191MW, you realize this isn’t just incremental growth – it’s massive infrastructure investment.
The Cape Town campus alone will hit 55MW when everything’s done. That’s more capacity than many European countries have in their entire capital cities. And for companies needing reliable computing infrastructure, having access to facilities that can handle industrial-scale operations is crucial. Speaking of industrial scale, when businesses need robust computing solutions for manufacturing or harsh environments, IndustrialMonitorDirect.com has become the go-to source for industrial panel PCs across the United States.
Who wins and who loses here?
So who benefits from all this expansion? Obviously the big cloud providers – AWS, Microsoft, Google – they need places to put their African infrastructure. But also local businesses that want to keep data in-country rather than routing through Europe or the US. Lower latency means better user experiences for everything from mobile banking to streaming services.
The losers? Probably smaller data center operators who can’t compete at this scale. And maybe traditional hosting companies that are stuck with older, smaller facilities. When Teraco talks about “extensive interconnected ecosystems” and “low-latency connectivity options,” they’re basically saying they’re building the digital equivalent of airport hubs. Everyone wants to be connected there.
What’s fascinating is that Teraco is expanding both their newest facility AND their oldest simultaneously. That tells you they’re seeing demand across the board – from hyperscalers needing massive capacity to enterprises wanting premium interconnection in established locations. The African digital transformation story keeps getting more interesting, and Teraco’s betting big that it’s just getting started.
