Ooredoo Looks to Spin Off Data Center Biz: Eyes New Investors

Ooredoo QPSC is looking to spin off its data center business, in an effort to attract new investors into the business.

The Qatari telecom firm is holding discussions with banks about a possible carve-out of the division, in line with its strategy to offload non-core assets, according to people familiar with the matter, as reported by Bloomberg. The people asked not to be named because the information is private.

In August, Ooredoo said that it has begun construction of three new data centers in Oman. Recently, Nokia and Ooredoo announced the introduction of 4G and 5G fixed wireless access (FWA) throughout Oman.

Ooredoo’s five data centers in Qatar cover a total space of about 60,000 square feet. Last month, Ooredoo sold its Myanmar business and also plans to carve out its portfolio of almost 20,000 towers as part of a shift to a so-called asset-light model.

Unlike the potential towers sale, Ooredoo plans to invest in the data centers by potentially bringing in external investors, one of the people said. Bloomberg said that Ooredoo didn’t return requests for comment.

Similarly, exactly a year back, PT Indosat, the Indonesian wireless carrier unit of Qatar’s Ooredoo QPSC, has picked Hong Kong-based Big Data Exchange as its preferred bidder for a majority stake in its Indonesian data centers business, according to a Bloomberg report which quoted people familiar with the matter. BDx, as the data centre platform owned by infrastructure-focused investment firm I Squared Capital is known, emerged as the likeliest buyer for a 75 per cent stake in Indosat’s data center assets after beating rival bidders, the people said, asking not to be identified because the information is private.

The stake could be valued between $200 million and $250 million, the sources said.

 

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