Qatar's Ooredoo Group Secures QAR 2 Billion Financing For Data Centre And AI Ops Expansion In MENA
Ooredoo Group has recently sealed a significant QAR 2 billion funding agreement aimed at enhancing its data centre and artificial intelligence (AI) operations. This strategic move is set to expand the company's capacity and modernize its infrastructure, catering to the increasing demands for AI, cloud services, and hyperconnectivity in the Middle East and North Africa (MENA) region.
With this financial boost, Ooredoo intends to separate its data centre assets from its telecom operations, allowing for substantial upgrades and expansions to support the growing tech needs of the region.
The financing, arranged with QNB, Doha Bank, and Masraf Al Rayan, is noteworthy not only for its size but also for its complexity, featuring both commercial and Islamic finance tranches. This 10-year hybrid facility stands as the largest of its kind in Qatar's technology sector, highlighting the faith that leading financial institutions have in Ooredoo's vision for the future.
Ooredoo's ongoing collaboration with industry leaders such as NVIDIA showcases its commitment to leveraging cutting-edge technology to fuel AI developments across the MENA region. This partnership, NVIDIA's first major launch in the area, positions Ooredoo at the forefront of the AI revolution, providing sovereign Cloud solutions to governments and enterprises. The collaboration underscores Ooredoo's role as a key digital infrastructure provider, ready to meet the complex demands of modern technology landscapes.
Aziz Aluthman Fakhroo, Group CEO of Ooredoo, emphasized the significance of this financial milestone in realizing the company's strategic goals. "The MENA region is one of the fastest growing markets for data centers worldwide, and there is significant untapped potential in AI, Cloud services and accelerated computing. This financing deal marks a major milestone in our strategic vision for expanding our data center and AI business, and we are excited to meet the region's increasing demand while upholding our commitment to sustainable, energy-efficient infrastructure. I would like to thank QNB, Doha Bank, and Masraf Al Rayan for their invaluable support in this landmark transaction and their dedication to accelerating the growth of digital infrastructure both in Qatar and across the region."
Abdulla Mubarak Al-Khalifa, QNB Group CEO, expressed pride in the collaboration, stating, "We expect the data centre market to grow significantly over the coming years, and by supporting Ooredoo, we are investing in the future of AI and Cloud services. This collaboration also strengthens Qatar's leadership in technological innovation. We look forward to working closely with Ooredoo Group as this market evolves."
Similarly, Sheikh Abdulrahman bin Fahad bin Faisal Al Thani, Group CEO of Doha Bank, highlighted the transformative impact of this initiative. "The growth of Ooredoo's data centres will have a transformative impact on the tech sector, enhancing regional competitiveness and positioning the country as a leader in the digital economy. We are proud to play a role in enabling this important step towards achieving comprehensive development in Qatar and the region."
Ooredoo's Data Centre company aims to pioneer the region's digital transformation by expanding its capacity to over 120 megawatts through a $1 billion investment. This ambitious growth plan is designed to cater to the surging demand for localized Cloud services and IT workloads, especially from hyperscalers. With 26 active data centers across Qatar, Kuwait, Oman, Iraq, and Tunisia, Ooredoo is not only leading the data center market in the MENA region but also committing to the development of new generation sustainable, energy-efficient data centers.
This strategic financing deal marks a significant step towards Ooredoo solidifying its position as a leading digital infrastructure provider in the MENA region. By leveraging the rise of generative AI, Ooredoo and its Data Centre company are positioned to drive innovation and AI adoption, enhancing the digital economy's growth across the region.
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