French telecoms firm Orange and global infrastructure fund manger Morrison have teamed up to build data centres in France.
They have entered an exclusivity agreement to create a jointly controlled company to support the development and enhancement of Orange’s existing data centre portfolio, targeting capacity of 400MW – nearly 10 times its current capacity.
The platform will have a €3bn investment programme, involving Orange’s existing assets and equity from Morrison, and debt.
As part of the transaction, Orange will contribute five major data centres across four campuses in France – in Chevilly-Larue, Aubervilliers, Chartres and Val-de-Reuil – to the joint venture. Morrison intends commit equity through its global value-add strategy.
In a statement, Orange and Morrison said the joint venture would help position France “as a leading location for digital infrastructure”, while benefitting from some of the most decarbonised electricity in Europe.
Christel Heydemann, CEO of Orange, said: “We are absolutely convinced that France will need sovereign, trusted digital infrastructure if it is to rise to the challenge of surging demand driven by cloud and artificial intelligence. This contemplated joint venture with Morrison, will allow us to unlock the value of our existing assets and strengthening our position in data centres.
“Together with a partner recognised for its expertise and investment capacity, we will accelerate the deployment of the capacity that the market needs. This is fully aligned with our ‘trust the future’ strategy, making trust a real competitive advantage and accelerating our growth in trusted digital solutions for businesses.”
William Smales, CEO of Morrison, said: “Europe’s digital future will require significant new investment in trusted infrastructure capable of supporting the growth of cloud services, artificial intelligence and data-intensive applications. Together with Orange, we are contemplating the creation of a platform that combines strategic infrastructure assets, operational expertise and long-term capital to meet that challenge.
“We believe France is exceptionally well positioned to play a leading role in Europe’s digital economy, and this partnership represents an important step towards building the sovereign infrastructure needed to support future growth and competitiveness.”
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