Digital Realty and the Pembani Remgro Infrastructure Fund, a South Africa-based infrastructure investment firm, have announced the formation of a joint venture to acquire the Nigerian data center, Medallion Communications.
Digital Realty is a U.S.-based real estate investment trust investing in carrier-neutral data centers and provides colocation and peering services.
Its interests span 225 operating data center facilities (about 34.5 million rentable square feet) in the United States, Europe, Asia, Canada and Australia.
The deal, which launches the company into the African continent, follows an earlier report that its Q3 sales hit $1.1 billion. While announcing the figure, the company said it acquired a controlling interest in Medallion Communications through the joint venture for approximately $29 million.
The joint venture will seek to capture the vast opportunity to meet growing customer demand for connectivity in Africa and improve Internet infrastructure for the more than 1 billion people on the continent with limited Internet access.
Commenting, Digital Realty CEO A. William Stein noted that its “expansion is a leap forward but it’s just the start of our $500 million commitment to invest in the continent over the next decade.”
Medallion Communications is a leading colocation and interconnection provider that operates two data centers in Nigeria, one in the commercial city of Lagos and the other in Abuja, the country’s capital.
Its Lagos data center is West Africa’s leading connectivity hub, with more than 70 carriers and Internet service providers. The Lagos data center also serves as the peering point for all subsea cables operating in Nigeria.
Pembani Remgro Infrastructure Fund
Pembani Remgro Infrastructure Fund is a South African private equity investment firm specializing in infrastructure investments in Africa. It focuses on making late-stage greenfield and brownfield infrastructure investments on the continent.
The fund was launched by Remgro and South African businessman Phuthuma Nhleko.