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KKR and Gulf Data Hub Form Strategic Partnership to Scale One of the Middle East’s Largest Independent Data Center Platforms

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KKR and Gulf Data Hub (GDH) have announced a strategic partnership where KKR-affiliated funds will acquire a stake in GDH, marking one of the largest international investments in a UAE-founded business. The partners have committed to support over $5 billion of total investment to expand GDH's data center capacity across the Gulf region.

GDH, established in 2012, operates seven purpose-built data centers in the UAE and Saudi Arabia, with plans for additional facilities in Kuwait, Qatar, Bahrain, and Oman. The company focuses on meeting hyperscale demand driven by increasing digital connectivity, cloud computing, and artificial intelligence needs.

This represents KKR's first data center investment in the Middle East, adding to their global portfolio of four hyperscale platforms comprising several GW of deployed assets across 100+ facilities. KKR manages $77 billion in infrastructure assets and has invested more than $29 billion across 22 digital infrastructure companies.

KKR e Gulf Data Hub (GDH) hanno annunciato una partnership strategica in cui i fondi affiliati a KKR acquisiranno una quota in GDH, segnando uno dei più grandi investimenti internazionali in un'azienda fondata negli Emirati Arabi Uniti. I partner si sono impegnati a sostenere oltre 5 miliardi di dollari di investimenti totali per espandere la capacità dei data center di GDH nella regione del Golfo.

GDH, fondata nel 2012, gestisce sette data center progettati appositamente negli Emirati Arabi Uniti e in Arabia Saudita, con piani per ulteriori strutture in Kuwait, Qatar, Bahrain e Oman. L'azienda si concentra sulla soddisfazione della domanda iperscalabile, guidata dall'aumento della connettività digitale, del cloud computing e delle esigenze di intelligenza artificiale.

Questo rappresenta il primo investimento di KKR in data center nel Medio Oriente, aggiungendo al loro portafoglio globale quattro piattaforme iperscalabili che comprendono diversi GW di asset distribuiti su oltre 100 strutture. KKR gestisce 77 miliardi di dollari in asset infrastrutturali e ha investito più di 29 miliardi di dollari in 22 aziende di infrastrutture digitali.

KKR y Gulf Data Hub (GDH) han anunciado una asociación estratégica en la que los fondos afiliados a KKR adquirirán una participación en GDH, marcando una de las mayores inversiones internacionales en una empresa fundada en los Emiratos Árabes Unidos. Los socios se han comprometido a apoyar más de 5 mil millones de dólares de inversión total para expandir la capacidad del centro de datos de GDH en la región del Golfo.

GDH, establecida en 2012, opera siete centros de datos diseñados específicamente en los Emiratos Árabes Unidos y Arabia Saudita, con planes para instalaciones adicionales en Kuwait, Qatar, Baréin y Omán. La empresa se centra en satisfacer la demanda hiperescalable impulsada por la creciente conectividad digital, la computación en la nube y las necesidades de inteligencia artificial.

Esto representa la primera inversión de KKR en centros de datos en Oriente Medio, añadiendo a su cartera global de cuatro plataformas hiperescalables que comprenden varios GW de activos desplegados en más de 100 instalaciones. KKR gestiona 77 mil millones de dólares en activos de infraestructura y ha invertido más de 29 mil millones de dólares en 22 empresas de infraestructura digital.

KKRGulf Data Hub (GDH)는 KKR 관련 펀드가 GDH의 지분을 인수하는 전략적 파트너십을 발표했습니다. 이는 아랍 에미리트에서 설립된 기업에 대한 가장 큰 국제 투자 중 하나를 의미합니다. 파트너들은 걸프 지역에서 GDH의 데이터 센터 용량을 확장하기 위해 총 50억 달러 이상의 투자를 지원할 것을 약속했습니다.

2012년에 설립된 GDH는 아랍 에미리트와 사우디 아라비아에 특수 설계된 데이터 센터 7개를 운영하며, 쿠웨이트, 카타르, 바레인, 오만에 추가 시설을 계획하고 있습니다. 이 회사는 디지털 연결성 증가, 클라우드 컴퓨팅 및 인공지능 수요에 의해 촉발된 하이퍼스케일 요구를 충족하는 데 중점을 두고 있습니다.

이것은 KKR의 중동 지역에서의 첫 번째 데이터 센터 투자로, 100개 이상의 시설에서 여러 GW의 배치 자산으로 구성된 4개의 하이퍼스케일 플랫폼으로 구성된 글로벌 포트폴리오에 추가됩니다. KKR은 770억 달러의 인프라 자산을 관리하며, 22개의 디지털 인프라 기업에 290억 달러 이상을 투자했습니다.

KKR et Gulf Data Hub (GDH) ont annoncé un partenariat stratégique où des fonds affiliés à KKR vont acquérir une part dans GDH, marquant l'un des plus grands investissements internationaux dans une entreprise fondée aux Émirats Arabes Unis. Les partenaires se sont engagés à soutenir plus de 5 milliards de dollars d'investissement total pour étendre la capacité des centres de données de GDH dans la région du Golfe.

Créée en 2012, GDH opère sept centres de données spécialement conçus aux Émirats Arabes Unis et en Arabie Saoudite, avec des projets d'installations supplémentaires au Koweït, au Qatar, à Bahreïn et à Oman. L'entreprise se concentre sur la satisfaction de la demande hyperscale, alimentée par l'augmentation de la connectivité numérique, de l'informatique en nuage et des besoins en intelligence artificielle.

Cela représente le premier investissement de KKR dans des centres de données au Moyen-Orient, ajoutant à leur portefeuille mondial quatre plateformes hyperscale comprenant plusieurs GW d'actifs déployés dans plus de 100 installations. KKR gère 77 milliards de dollars d'actifs d'infrastructure et a investi plus de 29 milliards de dollars dans 22 entreprises d'infrastructure numérique.

KKR und Gulf Data Hub (GDH) haben eine strategische Partnerschaft angekündigt, bei der KKR-affiliierte Fonds eine Beteiligung an GDH erwerben werden, was eine der größten internationalen Investitionen in ein in den VAE gegründetes Unternehmen darstellt. Die Partner haben sich verpflichtet, über 5 Milliarden Dollar an Gesamtinvestitionen bereitzustellen, um die Datenzentrumskapazität von GDH in der Golfregion auszubauen.

GDH, gegründet 2012, betreibt sieben speziell gebaute Datenzentren in den VAE und Saudi-Arabien und plant zusätzliche Einrichtungen in Kuwait, Katar, Bahrain und Oman. Das Unternehmen konzentriert sich darauf, die Hyperscale Nachfrage zu decken, die durch steigende digitale Konnektivität, Cloud-Computing und Bedürfnisse im Bereich Künstliche Intelligenz vorangetrieben wird.

Dies stellt KKR's erste Datenzentrum-Investition im Nahen Osten dar und erweitert ihr globales Portfolio um vier Hyperscale-Plattformen, die aus mehreren GW an bereitgestellten Vermögenswerten in über 100 Einrichtungen bestehen. KKR verwaltet 77 Milliarden Dollar an Infrastrukturvermögen und hat mehr als 29 Milliarden Dollar in 22 Unternehmen für digitale Infrastrukturen investiert.

Positive
  • Strategic commitment of over $5 billion for data center expansion
  • First-mover advantage in the Middle East's rapidly growing data center market
  • Extensive regional presence with 7 operational data centers and planned expansion to 4 new countries
  • Partnership with KKR brings significant expertise and global connectivity
Negative
  • High capital expenditure requirements for planned expansion
  • Regulatory approvals pending for the investment
  • Intense competition in the growing data center market

Insights

The $5 billion investment commitment between KKR and Gulf Data Hub represents a strategic pivot into the Middle East's rapidly expanding digital infrastructure sector. This deal is particularly noteworthy as it targets the intersection of three critical growth vectors: hyperscale data centers, AI infrastructure and regional digital transformation initiatives. The timing aligns perfectly with the exponential growth in data consumption and AI computing demands.

The strategic value proposition is compelling - GDH's established presence across seven data centers in key markets (UAE and Saudi Arabia), combined with KKR's global expertise and capital, creates a powerful platform for capturing the region's digital infrastructure growth. The planned expansion into Kuwait, Qatar, Bahrain and Oman suggests a comprehensive regional strategy that could establish significant barriers to entry for competitors.

From a technical perspective, GDH's carrier and vendor-neutral approach is important for attracting hyperscale clients, offering them the flexibility and scalability they require. The emphasis on 'powered landbank' is particularly significant - securing land with reliable power access is often the biggest hurdle in data center development, especially for AI workloads which require 2-3 times more power density than traditional workloads.

The Middle East's competitive advantages in energy costs and geographic positioning as a connectivity hub between Asia, Europe and Africa create unique value propositions for hyperscalers. KKR's experience with CyrusOne and STT GDC could help GDH implement best practices in facility design and operations, particularly important for AI-optimized infrastructure.

The market timing of this investment is optimal. Global data center demand is projected to surge with AI adoption - we're seeing unprecedented power requirements from AI workloads, often exceeding 100 MW per facility. The Middle East's abundant energy resources and ambitious digital transformation agendas (like UAE's National Strategy for Digital Economy) provide strong tailwinds.

KKR's track record in digital infrastructure ($29 billion across 22 investments) and their strategic partnership with Energy Capital Partners ($50 billion) positions them uniquely to address the power-intensive demands of AI computing. This investment could potentially transform GDH into a regional powerhouse, particularly given the growing trend of data sovereignty requirements driving localized data center demand.

  • Strategic partnership between a leading global investment firm and a leading UAE business with a regional footprint
  • KKR and GDH are committing to support over $5 billion of total investment to build-out data center capacity, supporting the significant rise in hyperscale demand, AI and digital-focused national priorities across the Gulf countries
  • First data center investment for KKR in the Middle East, adding to KKR’s unique global portfolio of four hyperscale platforms comprising several GW of deployed assets across 100+ facilities

DUBAI & LONDON & NEW YORK--(BUSINESS WIRE)-- Gulf Data Hub (“GDH” or the “Company”), one of the largest independent data center platforms in the Middle East focused on serving hyperscale demand across the Gulf countries, and KKR, a leading global investment firm, today announced that 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.

H.E. Dr Thani Bin Ahmed Al Zeyoudi and H.E. Omar Sultan Al Olama, presiding over the official signing of the strategic partnership between KKR and Gulf Data Hub by Tara Davies Co-Head of KKR EMEA and Co-Head of European Infrastructure and Tarek Al Ashram, CEO of Gulf Data Hub (GDH) (Photo: Business Wire)

H.E. Dr Thani Bin Ahmed Al Zeyoudi and H.E. Omar Sultan Al Olama, presiding over the official signing of the strategic partnership between KKR and Gulf Data Hub by Tara Davies Co-Head of KKR EMEA and Co-Head of European Infrastructure and Tarek Al Ashram, CEO of Gulf Data Hub (GDH) (Photo: Business Wire)

Established in 2012 and headquartered in Dubai, GDH, is one of the largest independent carrier and vendor neutral data center platforms in the Middle East with significant operating capacity and pipeline of projects. With an owned portfolio of seven purpose-built and state-of-the art data centers in the UAE and Saudi Arabia, and additional facilities planned in Kuwait, Qatar, Bahrain and Oman, GDH is focused on delivering the infrastructure required to meet hyperscale demand across the region to support increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence.

The transaction marks one of the largest international investments into a UAE-founded and managed business in a fast-growing sector that benefits from high demand and major competitive advantages, reaffirming the UAE’s leadership in accelerating digital and AI capabilities. Upon completion, KKR and GDH have committed to support over $5 billion of total investment to grow GDHs’ market leading position and to support its international growth plans through organic and inorganic strategies.

GDH has successfully built on its first mover advantage and leveraged its scalable platform and large powered landbank to create a sizeable pipeline of assets. The Company’s proven track record of data centre buildouts, reliable delivery of availability, performance, security and support for hyperscale customers, and successful operation of secure data centers which have been built to ensure continuous operation, have consolidated its position as a standout business in a rapidly growing sector.

Commenting on the transaction, His Excellency Omar Sultan Al Olama, UAE’s Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, who witnessed the signing ceremony in Dubai, remarked: “The UAE exemplifies visionary leadership, driving digital and AI capabilities to new heights. By transforming ambitious visions into the achievements we are witnessing today, it sets a global benchmark for innovation and progress. Through groundbreaking initiatives and strategic investments, the UAE is shaping a future where technology enhances lives, fuels economic prosperity, and unlocks boundless opportunities.”

Al Olama further added: "This milestone underscores the strength of the UAE’s digital economy, enhances the journey of growth, and aligns with the National Strategy for Digital Economy. Building on the momentum of 2024, marked by the launch of numerous data centers, it represents a strong start to 2025 and reaffirms the UAE’s dedication to strengthening its digital infrastructure. With an unwavering commitment to excellence, the UAE continues to lead, inspiring the world by advancing human potential and creating a smarter, more connected tomorrow.”

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.”

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. It also reinforces KKR’s continued commitment to the Middle East, following our landmark investment in ADNOC Oil Pipelines as well our work with Etihad alongside Altavair AirFinance.”

Waldemar Szlezak, Global Head of Digital Infrastructure at KKR, said: “Today's digital assets form the backbone of our data-driven society. With the world set to generate 1.5 times more digital data than just two years ago, the demand for data center capacity is skyrocketing. The ongoing migration to cloud computing and the rise of AI are not just trends; they are reshaping the landscape of digital infrastructure. As business requirements evolve, strategic investments such as the one we have forged with GDH will be crucial to harnessing the full potential of our digital future. We look forward to working with Tarek and his team to power their success together.”

KKR has had a presence in the Middle East for over 15 years, with offices in Dubai and Riyadh. Prior investments in the region include the strategic partnership with ADNOC to create ADNOC Oil Pipelines, which marked the first midstream infrastructure collaboration between a leading global institutional investor and a national oil company in the Middle East. KKR also acquired a portfolio of commercial aircraft from Etihad Airways in 2020 through aircraft leasing investment platform Altitude Aircraft Leasing, which was established by KKR’s credit and infrastructure funds in 2018 to acquire aircraft serviced by Altavair.

KKR first established its global infrastructure team and strategy in 2008 and has since been one of the most active infrastructure investors around the world with $77 billion in infrastructure assets under management as of September 30, 2024. To date, KKR has invested more than $29 billion across 22 investments in relevant digital infrastructure companies across data centers and fiber, as well as $15 billion in power, utilities, and energy.

KKR’s significant global data center footprint spans four platforms with several GW of deployed assets across over 100 facilities and more under development globally. These platforms include US-based global data center infrastructure provider CyrusOne, Singapore-based data center operators STT GDC and Nxera, and UK-based hyperscale data center developer, owner, and operator GTR. KKR’s portfolio also includes over 10 renewable energy developers with over 50 GW of global development pipeline.

Advancements in AI are fueling an unprecedented demand for data centers, but a limited availability of reliable power is impeding the strategic goals of the world’s largest technology companies, enterprises, and governments looking to deploy AI. To help address this, KKR has formed a $50 billion strategic partnership with Energy Capital Partners, the largest private owner of power generation and renewables in the US, designed to deliver scaled data center and power solutions for hyperscalers and other market participants to support the rapid expansion of AI and cloud computing globally.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com. For additional information about Global Atlantic Financial Group, please visit Global Atlantic Financial Group’s website at www.globalatlantic.com.

About GDH

Gulf Data Hub (GDH) is a leading provider of state-of-the-art data center solutions across the Middle East, offering highly secure, scalable, and sustainable infrastructure for businesses in the digital economy. Since its inception in 2012, GDH has consistently innovated and sought ways to minimize the risks associated with downtime while maximizing operational efficiency. With facilities strategically located in key markets, GDH provides colocation, cloud, and connectivity services to a diverse portfolio of clients, including global enterprises, governments, and hyperscale cloud providers. Committed to innovation, operational excellence, and environmental sustainability, GDH empowers its clients to thrive in a rapidly evolving digital landscape. For additional information about GDH, please visit the GDH website at www.gulfdatahub.ae

Media



Middle East:

Mitali Atal: mitali.atal@fgsglobal.com

Aditi Mane: aditi.mane@fgsglobal.com



United Kingdom:

Alastair Elwen: alastair.elwen@fgsglobal.com

Jack Shelley: jack.shelley@fgsglobal.com

Source: KKR

FAQ

What is the value of KKR's investment commitment in Gulf Data Hub?

KKR and GDH have committed to support over $5 billion of total investment to expand GDH's data center capacity and market position.

How many data centers does Gulf Data Hub currently operate?

GDH currently operates seven purpose-built data centers in the UAE and Saudi Arabia.

Which new markets is Gulf Data Hub planning to expand into?

GDH is planning to expand its operations into Kuwait, Qatar, Bahrain, and Oman.

What is KKR's current infrastructure assets under management?

KKR has $77 billion in infrastructure assets under management as of September 30, 2024.

How many digital infrastructure companies has KKR invested in?

KKR has invested more than $29 billion across 22 digital infrastructure companies.

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