DOHA: Ooredoo Group announced a landmark QR2bn financing deal, on Wednesday, to accelerate the growth of its data centre and AI business, enabling a significant expansion of capacity and the modernization of its data centres.
The Group said that the financing deal was signed with QNB, Doha Bank, and Masraf Al Rayan, with a 10-year hybrid facility, comprising commercial and Islamic tranches, and that it is the largest transaction in terms of value and tenor ever achieved in Qatars tech sector, underscoring the confidence of leading financial institutions in Ooredoos strategic vision.
It added that the funds will be strategically allocated to carve out existing data centre assets from Ooredoo's telecom operations, with a significant portion directed toward expanding capacity and upgrading infrastructure to support the growing demand for AI, cloud services, and hyper-connectivity in the Middle East and North Africa (MENA) region.
Commenting on the deal, Ooredoo Group CEO Aziz Aluthman Fakhroo said, "The MENA region is one of the fastest growing markets for data centres 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 centre and AI business, and we are excited to meet the region's increasing demand while upholding our commitment to sustainable, energy-efficient infrastructure."
In turn, QNB Group CEO Abdulla Mubarak Al Khalifa said, "We are proud to have worked alongside Ooredoo Group, Doha Bank, and Masraf Al Rayan on this important financing deal, which will facilitate the growth of data centres in Qatar and the region. 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."
For his part, Masraf Al Rayan Group CEO Fahad Al Khalifa commented, "We are excited to be part of this major financing deal, which will contribute to driving technological progress in Qatar and the region. By partnering with Ooredoo, we are investing in the future of digital infrastructure and supporting sustainable growth through innovation and economic diversification. We are proud to be at the forefront of this significant initiative, which will undoubtedly cement Qatar's position as a leader in the digital economy."
Doha Bank Group CEO Sheikh Abdulrahman bin Fahad bin Faisal Al Thani stated, "We are dedicated to supporting Ooredoo in its ambitious expansion of digital infrastructure through this financing deal. The growth of Ooredoos 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."
Ooredoos Data Centre Company was established to pioneer the region's digital transformation by providing cutting-edge collocation services to hyper-scalers and enterprises. As part of its strategic growth, the company plans to expand its capacity to over 120 megawatts through a $1bn investment in the medium to long term. This expansion will position Ooredoo to better serve the increasing demand for localized Cloud services and IT workloads, particularly from hyper-scalers.
With 26 active data centres across Qatar, Kuwait, Oman, Iraq, and Tunisia, Ooredoo continues to lead the Mena region's data centre market.
The company is committed to building a new generation of sustainable, energy-efficient data centres that securely process IT workloads for governments, hyper-scalers, enterprises, and startups, driving innovation and AI adoption across the region.
The deal will position Ooredoo and its Data Centre Company among the leading companies in the region to utilize the rise of generative AI and solidify Ooredoos position as the leading digital infrastructure provider in the region.
Ooredoo Group has strong partnerships with hyper-scalers, enabling the company to offer cloud-based solutions including Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).
Earlier this year Ooredoo Group announced a collaboration with NVIDIA, which will see the company leverage NVIDIAs advanced accelerated computing platform to help enable the AI revolution across the MENA region and provide sovereign cloud solutions to governments and enterprises.
The agreement marked NVIDIAs first large-scale launch in the region.
