Investment firm KKR has entered the data centre market in the Middle East by acquiring a stake in Gulf Data Hub (GDH).
Funds managed by KKR’s global infrastructure strategy have agreed to acquire the unspecified stake in data centre platform GDH, in a deal that involves both parties committing more than $5bn (€4.9bn) to scale up the business across the Gulf.
Established in 2012 and headquartered in Dubai, GDH operates a portfolio of purpose-built data centres in the UAE and Saudi Arabia, with plans for additional facilities in Kuwait, Qatar, Bahrain and Oman.
KKR has operated in the Middle East for more than 15 years, with prior investments including a partnership with ADNOC to establish ADNOC Oil Pipelines. In 2020, KKR acquired a portfolio of commercial aircraft from Etihad Airways through its aircraft leasing investment platform Altitude Aircraft Leasing.
In the data centre space, KKR’s portfolio includes US-based CyrusOne, Singapore-based STT GDC and Nxera, and UK-based GTR.
Tara Davies, co-head of KKR EMEA and co-head of European infrastructure, said: “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.”
Sultan Al Olama, UAE’s minister of state for artificial intelligence, digital economy and remote work applications, said: “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.”
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 centre 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.”
Waldemar Szlezak, the 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 centre 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.”
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