Open Access Data Centres (OADC) acquires NTT Data Group

The Competition Commission has granted approval for Open Access Data Centres (OADC) to acquire a portfolio of data centre facilities from NTT Data in South Africa. This acquisition allows OADC to expand its digital infrastructure footprint in a strategically important market, subject to certain public-interest commitments.

Open Access Data Centres, through its subsidiaries OADC Propco and OADC Opco, will take over seven data centre facilities from NTT Data, broadening its existing operations in Johannesburg, Durban, and Cape Town. The facilities located in Bryanston and Parklands, Johannesburg, offer various technological services including network connectivity and data centre management. The transaction also encompasses associated infrastructure, supplier contracts, lease agreements, and the real estate of the Parklands facility.

The strategic acquisition builds on OADC's existing network, integrating these facilities into its already extensive terrestrial and subsea fibre infrastructure across sub-Saharan Africa. This move is aimed at catering to the increasing demand for advanced digital infrastructure and connectivity within South Africa. It positions OADC as a more formidable player in the region’s growing digital ecosystem, enhancing its competitive edge.

The Competition Commission's clearance highlights that the acquisition does not impair market competition. However, OADC must fulfill a condition tied to public interest: a "historically disadvantaged persons" (HDP) transaction, underscoring the importance of inclusive economic growth in regulatory processes.

Looking ahead, OADC will focus on leveraging its enhanced capacity to meet South Africa's expanding requirements for digital services. The timeline for the full integration of the NTT Data facilities into OADC’s operations has not been disclosed, though key focus will be on aligning services and infrastructure. The market will be closely watching how this acquisition influences the competitive landscape and the response of other players in the digital infrastructure sector.