Digital Realty Raises Teraco Stake to 77%

The US$ 688 million deal lifts Digital Realty's ownership of the South African data centre operator from 61 percent to approximately 77 percent.

Updated on Nov. 3, 2026 in Data Centers

Bold flat-color vector editorial illustration of a long corridor of dark steel server cabinets receding toward a pale cooling unit beneath mustard cable trays. — Digital Realty spent about US$688 million in stock to buy a 16 percent stake in South African data centre operator Teraco, lifting its ownership to roughly 77 percent. AI Illustration. Upload story photo >

Digital Realty acquired a 16 percent stake in Teraco from certain minority shareholders for approximately US$ 688 million, paying principally through the issuance of 3.4 million shares of common stock. The purchase follows the close of its third quarter and raises its ownership of Teraco from 61 percent to approximately 77 percent.

Why it matters

Teraco operates eight data centre locations in South Africa, with most of its operations in Johannesburg, so the transaction consolidates control of a major African data centre platform. The move comes alongside record backlog and bookings reported for the quarter, signalling sustained demand for data centre capacity in the region.

Digital Realty's quarterly bookings totalled US$ 855 million in annualised GAAP base rent, of which US$ 627 million (184.8 MW) was its own share, with Asia Pacific at US$ 283 million, the Americas at US$ 243 million and EMEA at US$ 78 million. Digital Realty did not state how the Teraco bookings are split out within these totals.

The players

Digital Realty

Digital Realty is a large publicly traded real estate investment trust that owns and operates data centres worldwide.

Teraco

Teraco is a South African data centre operator with eight locations, mostly in Johannesburg, and is a significant interconnection hub on the African continent.

The details

Digital Realty bought the stake from certain minority shareholders after the close of its third quarter, paying mainly in newly issued common stock rather than cash. During the quarter it also signed renewal leases worth US$ 261 million in annualised cash rental revenue.

- Q3 2026: Digital Realty reported quarterly results with record backlog and bookings.
- After the close of Q3 2026: Digital Realty completed the acquisition of the additional 16 percent Teraco stake.

Market Landscape

The deal deepens Digital Realty's control of Teraco at a time when its reported backlog of signed-but-not-commenced leases reached a record US$ 2.5 billion, including joint venture partners' portion. Its renewal rate increases of 11.8 percent on a cash basis and 17 percent on a GAAP basis suggest pricing power in its existing markets.

Demand for data centre capacity in South Africa underpins the cloud, streaming and online services that businesses and consumers rely on. Continued expansion by operators such as Teraco may affect the availability and cost of hosting for local companies over time.

The takeaway

Digital Realty's record backlog and rising renewal rates show that demand for data centre space in South Africa remains strong. Businesses planning cloud or hosting needs in the country should expect continued capacity growth from established operators.