French multinational telecommunications operator Orange and global infrastructure investor Morrison have announced an agreement to create a jointly controlled data center company in France that will grow Orange’s data center portfolio tenfold to 400 MW.
As part of the agreement, Orange will contribute five data centers across four campuses in Chevilly-Larue, Aubervilliers, Chartres, and Val-de-Reuil in France. Morrison will contribute equity and debt, with the combined investment valued at € 3 billion (US$ 3.41 billion) and ownership split equally between the two firms according to a press release.
“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,” said Christel Heydemann, Orange group Chief Executive Officer.
The joint venture is being presented as a sovereign offering aimed at meeting the growing demand for AI and cloud services in France. Orange Business will be the exclusive partner for distributing colocation and hosting offers to large enterprises, SMEs and public-sector entities. Orange will, however, retain operational control over the areas dedicated to its own operations.
“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,” said William Smales, Chief Investment Officer, Morrison.
The signing of the transaction is expected to happen by the end of 2026 and is subject to consultations with relevant representative bodies and regulatory approval. The agreement is expected to close during Q1 2027.
France is seeing a surge in demand for data centers as digitalization takes place across industries. As a result, data center capacity is expected to expand from over 600 MW to more than 5 GW according to Arizton Advisory & Intelligence. The country’s investment and support of low-carbon energy will be leaned on heavily to power that load, likely attracting investors looking for sustainable data center deployments.