KKR, a renowned global investment firm, has announced that funds associated with it will acquire a stake in Gulf Data Hub (GDH), a prominent data center player headquartered in Dubai. Upon completion, KKR and GDH have committed to support over US$5 billion of total investment to grow GDHs’ market position and to support its international growth plans. The investment, which is subject to customary regulatory approvals, is being made through KKR’s Global Infrastructure strategy.
Established in 2012, GDH provides colocation, cloud, and connectivity services to a diverse portfolio of clients, including global enterprises, governments, and hyperscale cloud providers. Its portfolio comprises 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. This deal is significant given the Middle East’s increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence.
Tara Davies, Co-Head of KKR EMEA and Co-Head of European Infrastructure, explained KKR’s motivation for investment saying, “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.
Tarek Al Ashram, Founder and CEO of Gulf Data Hub, said, “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.”
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.”
KKR has had a presence in the Middle East for over 15 years, with offices in Dubai and Riyadh. 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.