Investment firm KKR has outlined plans to invest in United Arab Emirates-based colo firm Gulf Data Hub (GDH).
Announced this week, funds affiliated with KKR will acquire a stake in GDH. The investment, which is subject to customary regulatory approvals, is being made through KKR’s Global Infrastructure strategy. Terms were not disclosed.
Established in 2012 and headquartered in Dubai, GDH has an owned portfolio of seven purpose-built data centers in the UAE and Saudi Arabia, with additional facilities planned in Kuwait, Qatar, Bahrain, and Oman.
KKR noted it is the company’s first data center investment in the Middle East. The companies said they have committed to support more than $5 billion of investment to grow GDH through organic and inorganic deals.
Tarek Al Ashram, founder and CEO of Gulf Data Hub, said: “Today marks a milestone in our growth journey as we welcome KKR, a global leader in digital infrastructure investing, as a strategic partner in our business. 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.”
GDH currently has four facilities live across Dubai and Abu Dhabi in the UAE, and one each in Jeddah and Dammam, Saudi Arabia, totaling around 40MW. It claims to have 90MW of capacity currently under construction, with further facilities in Abu Dhabi (x2), and Dubai (x2) in development.
In addition to expansion into existing markets and a move into Riyadh in Saudi Arabia, according to the company’s website, its pipeline includes plans for more than a dozen facilities across Bahrain, Qatar, Kuwait, Oman, Morocco, and Jordan.
In 2023, Gulf Data Hub said it was planning three data center campuses in Egypt totaling 192MW, with potential to expand to 300MW. The move is in partnership with local firm Elsewedy Data Centers.
Reports that GHD was exploring a potential stake sale surfaced last year. Reports at the time suggested the company was seeking a $1 billion investment.
KKR’s data center investments include CyrusOne, GTR, STT GDC, and Nexera. The investment firm said its global data center footprint spans four platforms with “several gigawatts” of deployed assets across more than 100 facilities, with more under development globally. KKR’s portfolio also includes more than 10 renewable energy developers with more than 50GW of capacity in the development pipeline.
Tara Davies, co-head of KKR EMEA and co-head of European Infrastructure, added: "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.
"Our investment in GDH aligns with our conviction in digital infrastructure and enables us to leverage our global connectivity to drive value and accelerate the growth of a leading business in the region."