Massachusetts-based investment firm Berkshire Partners LLC will buy a stake in South African data centre company Teraco Data Environments.
Teraco, which is going to fetch between $600 million and $1 billion including debt, plans to double its installed power load capacity to 60 megawatts in the next four to five years.
The acquisition comes after UK-based investment firm Permira Holdings LLP sought a buyer for part of its stake in Teraco.
Berkshire will spend $325 million on building data-services centres in South Africa when the current investment cycle ends in 2019.