DUBAI & LONDON & NEW YORK - Friday, 17. January 2025 AETOSWire
Strategic partnership between a leading global investment firm and a leading UAE business with a regional footprint
KKR and GDH are committing to support over $5 billion of total
investment to build-out data center capacity, supporting the significant
rise in hyperscale demand, AI and digital-focused national priorities
across the Gulf countries
First data center investment for KKR in
the Middle East, adding to KKR’s unique global portfolio of four
hyperscale platforms comprising several GW of deployed assets across
100+ facilities
(BUSINESS WIRE) -- Gulf Data Hub (“GDH”
or the “Company”), one of the largest independent data center platforms
in the Middle East focused on serving hyperscale demand across the Gulf
countries, and KKR, a leading global investment firm, today announced
that funds affiliated with KKR will acquire a stake in GDH. The
investment, which is subject to customary regulatory approvals, is being
made through KKR’s Global Infrastructure strategy.
Established
in 2012 and headquartered in Dubai, GDH, is one of the largest
independent carrier and vendor neutral data center platforms in the
Middle East with significant operating capacity and pipeline of
projects. With an owned portfolio of seven purpose-built and
state-of-the art data centers in the UAE and Saudi Arabia, and
additional facilities planned in Kuwait, Qatar, Bahrain and Oman, GDH is
focused on delivering the infrastructure required to meet hyperscale
demand across the region to support increasing data consumption driven
by the growing trends in digital connectivity, cloud and artificial
intelligence.
The transaction marks one of the largest
international investments into a UAE-founded and managed business in a
fast-growing sector that benefits from high demand and major competitive
advantages, reaffirming the UAE’s leadership in accelerating digital
and AI capabilities. Upon completion, KKR and GDH have committed to
support over $5 billion of total investment to grow GDHs’ market leading
position and to support its international growth plans through organic
and inorganic strategies.
GDH has successfully built on its first
mover advantage and leveraged its scalable platform and large powered
landbank to create a sizeable pipeline of assets. The Company’s proven
track record of data centre buildouts, reliable delivery of
availability, performance, security and support for hyperscale
customers, and successful operation of secure data centers which have
been built to ensure continuous operation, have consolidated its
position as a standout business in a rapidly growing sector.
Commenting
on the transaction, His Excellency Omar Sultan Al Olama, UAE’s Minister
of State for Artificial Intelligence, Digital Economy and Remote Work
Applications, who witnessed the signing ceremony in Dubai, remarked:
“The UAE exemplifies visionary leadership, driving digital and AI
capabilities to new heights. By transforming ambitious visions into the
achievements we are witnessing today, it sets a global benchmark for
innovation and progress. Through groundbreaking initiatives and
strategic investments, the UAE is shaping a future where technology
enhances lives, fuels economic prosperity, and unlocks boundless
opportunities.”
Al Olama further added: "This milestone
underscores the strength of the UAE’s digital economy, enhances the
journey of growth, and aligns with the National Strategy for Digital
Economy. Building on the momentum of 2024, marked by the launch of
numerous data centers, it represents a strong start to 2025 and
reaffirms the UAE’s dedication to strengthening its digital
infrastructure. With an unwavering commitment to excellence, the UAE
continues to lead, inspiring the world by advancing human potential and
creating a smarter, more connected tomorrow.”
Tarek Al Ashram,
Founder and CEO of Gulf Data Hub, said: “Today marks a milestone in our
growth journey as we welcome KKR, a global leader in digital
infrastructure investing, as a strategic partner in our business. Over
the past 12 years, GDH has grown into one of the most successful data
center platforms in the region, supporting the business needs of
sophisticated cloud and enterprise software customers. The strategic
partnership with KKR will enable us to leverage their deep expertise,
positioning us to achieve our pan-regional ambitions and deliver on our
mandate of being a partner and provider of choice.”
Tara Davies,
Co-Head of KKR EMEA and Co-Head of European Infrastructure, added: "The
Middle East is a fast-growing region for hyperscale deployment. With
competitively priced and readily available sources of energy, an
unmatched ability to serve as a gateway hub for Asia and Africa, and
sustained government commitment to power the growth of the digital
sector, we believe it is today one of the most attractive investment
destinations for long-term capital. Our investment in GDH aligns with
our conviction in digital infrastructure and enables us to leverage our
global connectivity to drive value and accelerate the growth of a
leading business in the region. It also reinforces KKR’s continued
commitment to the Middle East, following our landmark investment in
ADNOC Oil Pipelines as well our work with Etihad alongside Altavair
AirFinance.”
Waldemar Szlezak, Global Head of Digital
Infrastructure at KKR, said: “Today's digital assets form the backbone
of our data-driven society. With the world set to generate 1.5 times
more digital data than just two years ago, the demand for data center
capacity is skyrocketing. The ongoing migration to cloud computing and
the rise of AI are not just trends; they are reshaping the landscape of
digital infrastructure. As business requirements evolve, strategic
investments such as the one we have forged with GDH will be crucial to
harnessing the full potential of our digital future. We look forward to
working with Tarek and his team to power their success together.”
KKR
has had a presence in the Middle East for over 15 years, with offices
in Dubai and Riyadh. Prior investments in the region include the
strategic partnership with ADNOC to create ADNOC Oil Pipelines, which
marked the first midstream infrastructure collaboration between a
leading global institutional investor and a national oil company in the
Middle East. KKR also acquired a portfolio of commercial aircraft from
Etihad Airways in 2020 through aircraft leasing investment platform
Altitude Aircraft Leasing, which was established by KKR’s credit and
infrastructure funds in 2018 to acquire aircraft serviced by Altavair.
KKR
first established its global infrastructure team and strategy in 2008
and has since been one of the most active infrastructure investors
around the world with $77 billion in infrastructure assets under
management as of September 30, 2024. To date, KKR has invested more than
$29 billion across 22 investments in relevant digital infrastructure
companies across data centers and fiber, as well as $15 billion in
power, utilities, and energy.
KKR’s significant global data
center footprint spans four platforms with several GW of deployed assets
across over 100 facilities and more under development globally. These
platforms include US-based global data center infrastructure provider
CyrusOne, Singapore-based data center operators STT GDC and Nxera, and
UK-based hyperscale data center developer, owner, and operator GTR.
KKR’s portfolio also includes over 10 renewable energy developers with
over 50 GW of global development pipeline.
Advancements in AI are
fueling an unprecedented demand for data centers, but a limited
availability of reliable power is impeding the strategic goals of the
world’s largest technology companies, enterprises, and governments
looking to deploy AI. To help address this, KKR has formed a $50 billion
strategic partnership with Energy Capital Partners, the largest private
owner of power generation and renewables in the US, designed to deliver
scaled data center and power solutions for hyperscalers and other
market participants to support the rapid expansion of AI and cloud
computing globally.
About KKR
KKR is a leading global
investment firm that offers alternative asset management as well as
capital markets and insurance solutions. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and supporting growth in its
portfolio companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries offer
retirement, life and reinsurance products under the management of Global
Atlantic Financial Group. References to KKR’s investments may include
the activities of its sponsored funds and insurance subsidiaries. For
additional information about KKR & Co. Inc. (NYSE: KKR), please
visit KKR’s website at www.kkr.com. For additional information about
Global Atlantic Financial Group, please visit Global Atlantic Financial
Group’s website at www.globalatlantic.com.
About GDH
Gulf
Data Hub (GDH) is a leading provider of state-of-the-art data center
solutions across the Middle East, offering highly secure, scalable, and
sustainable infrastructure for businesses in the digital economy. Since
its inception in 2012, GDH has consistently innovated and sought ways to
minimize the risks associated with downtime while maximizing
operational efficiency. With facilities strategically located in key
markets, GDH provides colocation, cloud, and connectivity services to a
diverse portfolio of clients, including global enterprises, governments,
and hyperscale cloud providers. Committed to innovation, operational
excellence, and environmental sustainability, GDH empowers its clients
to thrive in a rapidly evolving digital landscape. For additional
information about GDH, please visit the GDH website at
www.gulfdatahub.ae
View source version on businesswire.com: https://www.businesswire.com/news/home/20250117834785/en/
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Contacts
Media
Middle East:
Mitali Atal: mitali.atal@fgsglobal.com
Aditi Mane: aditi.mane@fgsglobal.com
United Kingdom:
Alastair Elwen: alastair.elwen@fgsglobal.com
Jack Shelley: jack.shelley@fgsglobal.com
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