Telecommunications company Etisalat has today announced it has signed an agreement to combine twelve data centres in a new joint venture business operating under Khazna Data Centres. The new partnership will create the UAE’s largest data centre provider.
Hatem Dowidar, Chief Executive Officer of Etisalat Group said: “Today, Etisalat and G42 are embarking on a bold new journey which will allow us to leverage our investments and expertise to deliver next-generation digital infrastructure. Keeping in line with our overall strategy and vision of ‘Driving the Digital Future to Empower Societies’, we at Etisalat are committed to a total transformation of customer experiences. Etisalat Group today has set the foundation for creating a market leader in this space, and together with G42, we will take this to the next level.”
Khazna Data Centers joint business venture with Etisalat and G42
Khazna Data Centers’ ownership will be split, with 60% going to G42 and the remaining 40% going to Etisalat Group. The agreement allows both parties to increase the value of their infrastructure assets contributed to the joint venture while also optimizing process and resource utilisation, without impacting their respective commercial positioning, client relationships and leading market positions. Furthermore, Khazna Data Centers will continue to develop the existing business and explore new business opportunities, both in the UAE and abroad.
Hassan AlNaqbi, CEO of Khazna Data Centers, said: “The levels of data produced, stored, and analysed is increasing exponentially in the Middle East region, driving significant demand for wholesale data centers. This growth requires a greater focus on collaboration and using shared data to drive business performance. Khazna Data Centers, with 300 MW of capacity, will be the crown jewel backing businesses’ growth trajectory and their ability to manage the level of connectivity required to effectively deliver services to partners, customers, and users alike and supporting the creation of a digital ecosystem.
Salvador Anglada, Chief Business Officer of Etisalat Group, said: “Etisalat Group is excited to partner with an innovative and leading service provider such as G42. The combination of our data center capabilities will deliver a unique portfolio of infrastructure services for current customers, and will also create a market leader for the future to global hyperscalers. We believe that this transaction will further strengthen the UAE as a preferred destination for global technology companies seeking world-class presence in the region, and propel the development of the digital ecosystem in support of the growth ambitions, which UAE is well-positioned to capitalise upon.”
Etisalat said that the closing of the transaction is subject to customary procedures, including finalisation of transaction documentation, regulatory approvals, and certain administrative procedures.