South Africa’s Internet Solutions spends $35m on data capacity


Internet Solutions, a subsidiary of dual-listed Dimension Data, has earmarked $35 million for additional data centre capacity this year.

The company has already spent about $4 million on expanding current capacity, and is now looking for somewhere to build a new centre to the tune of $31 million. The company has a budget of $35 million – or R261 million – for additional capacity this year.

Allan Cawood, CEO of Dimension Data Middle East and Africa, says the company is evaluating where to place the next major data centre. It already has three centres in Johannesburg, two in Cape Town and one in Durban.

Cawood says the company is considering a few opportunities to build a centre, either in the centre of Johannesburg, or Midrand.

He explains that the budgeted amount would be spent mostly on refurbishing a building (which would be leased), infrastructure, flooring, cooling, generators and technology aspects such as servers.

Although Internet Solutions mostly offers services to local clients, the rapid development of undersea cables along Africa's coast lines means it will be able to host African clients, says Cawood.

He explains that Internet Solutions is investing in new capacity to make sure it is not usurped as the leader in hosting in SA.

Internet Solutions' turnover was $156 million in the six months to March, a 10% increase on the previous period. The unit accounts for 7% of Dimension Data's revenue.