Phoenix Group Expands into Europe with First AI Data Centre in Lyon

Phoenix Group PLC (ADX: PHX), an International Holding Company portfolio firm and global digital infrastructure operator, has announced a strategic partnership with DC Max to develop its first European artificial intelligence data centre, an 18MW facility in Lyon, France, targeting surging regional demand for AI and high-performance computing capacity.

The Lyon project marks the inaugural deployment of Phoenix’s European Data Center Platform, a scalable framework targeting over 1GW of combined AI and high-performance computing capacity across Europe and the GCC. Phoenix positions the expansion as an extension of the UAE’s national AI ambition from its Abu Dhabi headquarters into the European infrastructure market.

Munaf Ali, Co-Founder and GCEO of Phoenix Group, described the partnership as “a genuine inflection point” for the company and for what an Emirati operator can achieve internationally. He said the 1GW ambition for the European platform “is not a ceiling; it is a starting point,” highlighting long-term value creation for shareholders and partners.

Demand for AI compute in Europe is rapidly outpacing supply, with enterprises and hyperscalers reserving capacity years ahead of deployment. Traditional development timelines of 36 to 48 months constrain most operators’ ability to respond at the speed required by the current AI infrastructure market.

France is viewed by Phoenix and DC Max as one of the European markets best placed to address this gap. Lyon, the country’s second-largest city, combines a strong industrial base, robust electrical infrastructure, and land costs that are significantly lower than those in Paris, strengthening its attractiveness for large-scale data centre developments.

DC Max’s established grid access and permitting relationships in Lyon and across France, combined with Phoenix’s experience in designing, procuring, and building infrastructure at speed, are expected to allow the partnership to advance projects materially faster than typical European development schedules.

The DC Max partnership is structured as a repeatable development model rather than a single transaction. It is underpinned by a pipeline of over 1GW of opportunities valued at an estimated $8 billion, with DC Max focusing on site origination, permitting, and grid access, while Phoenix provides capital and operational scale.

Together, the companies aim to create a scalable, long-term infrastructure platform capable of delivering AI-ready capacity rapidly across key European markets. This new platform sits alongside Phoenix’s existing 550MW of deployed capacity across the UAE, Oman, North America, and Ethiopia, supporting its strategy to operate as a scaled global digital infrastructure provider.

Romain Fremont, CEO of DC Max, said Phoenix brings “operational scale and capital discipline that French data center development has been waiting for.” He noted that years spent securing power positions across France can now be converted into projects at a pace and scale previously unattainable independently.