KKR Announces $5 Billion Investment in Gulf Data Hub
KKR, a global investment firm, has revealed plans to invest in Gulf Data Hub (GDH), a prominent data center provider based in the UAE. This strategic move marks KKR’s first foray into the Middle East’s data center sector. The investment will be made through KKR’s Global Infrastructure strategy and is still subject to regulatory approvals. Although the exact terms of the deal have not been disclosed, both companies are committed to driving more than $5 billion in regional investments through a combination of organic growth and potential acquisitions.
Gulf Data Hub’s Growing Presence in the Middle East
Founded in 2012 and headquartered in Dubai, Gulf Data Hub has quickly established itself as a key player in the Middle East’s data center market. The company currently operates a portfolio of seven purpose-built data centers in the UAE and Saudi Arabia, with ambitious plans for further expansion across the region. New facilities are planned for Kuwait, Qatar, Bahrain, and Oman, alongside major developments in the UAE.
GDH’s existing data centers span four sites in Dubai and Abu Dhabi, as well as two locations in Saudi Arabia’s Jeddah and Dammam, providing a total of 40MW of capacity. Additionally, the company has 90MW of capacity under construction, with projects in Abu Dhabi and Dubai already underway.
Expanding into Key Middle Eastern Markets
In addition to bolstering its presence in the UAE and Saudi Arabia, Gulf Data Hub is eyeing significant growth in other Middle Eastern markets. The company’s pipeline includes more than a dozen new facilities across Bahrain, Qatar, Kuwait, Oman, Morocco, and Jordan. GDH is also planning three data center campuses in Egypt, with a total capacity of 192MW, in partnership with Elsewedy Data Centers.
This continued regional expansion will be supported by KKR’s global expertise in digital infrastructure, leveraging their experience from previous investments in companies like CyrusOne, GTR, STT GDC, and Nexera. Together, KKR and GDH aim to meet the growing demand for cloud and enterprise software solutions in the region.
KKR’s Commitment to Digital Infrastructure Growth
KKR’s involvement in Gulf Data Hub aligns with its broader commitment to digital infrastructure investments. The firm has built an extensive global data center portfolio, spanning over 100 facilities across multiple platforms, with a significant amount of capacity still under development. KKR’s focus on digital infrastructure is complemented by its investments in over 10 renewable energy developers, with over 50GW of capacity in development.
Tara Davies, co-head of KKR EMEA and co-head of European Infrastructure, emphasized the importance of the Middle East as a rapidly growing region for hyperscale data centers. The region’s abundance of competitively priced, readily available energy, coupled with its role as a gateway for business between Asia and Africa, makes it a highly attractive investment destination. KKR sees this partnership as an opportunity to leverage its global network to help GDH accelerate its growth.
GDH’s Vision for the Future
Tarek Al Ashram, founder and CEO of Gulf Data Hub, expressed optimism about the future of the partnership with KKR. “Today marks a milestone in our growth journey,” said Al Ashram. “We are excited to welcome KKR as a strategic partner. Their deep expertise in digital infrastructure will help position us to achieve our regional ambitions and cement our position as a partner and provider of choice for cloud and enterprise customers.”
This partnership will also enhance GDH’s ability to serve the digital transformation needs of businesses in the Middle East and beyond, making it an essential player in the region’s growing data center market.
FAQ Section
What is Gulf Data Hub?
Gulf Data Hub (GDH) is a UAE-based data center provider, operating facilities in the UAE, Saudi Arabia, and plans for further expansion in the Middle East.
How much is KKR investing in Gulf Data Hub?
KKR has committed over $5 billion in investments to grow Gulf Data Hub through organic growth and acquisitions.
What regions will Gulf Data Hub expand into?
Gulf Data Hub is planning to expand into several Middle Eastern markets, including Kuwait, Qatar, Bahrain, Oman, Morocco, and Jordan, along with its ongoing developments in the UAE and Saudi Arabia.
What are the current data center capacities of Gulf Data Hub?
GDH currently operates data centers with a total of 40MW of capacity, with another 90MW under construction.
How does KKR’s investment impact the Middle East’s data center market?
KKR’s investment is expected to accelerate the growth of data centers in the region, leveraging their global infrastructure expertise to meet the rising demand for digital services.
