Qatari telco Ooredoo has secured new financing to fund the expansion of its data center portfolio across the MENA region.
The company this week announced a QAR 2 billion ($552m) financing deal to accelerate the growth of its data center and AI business.
The 10-year hybrid facility, which comprises commercial and Islamic tranches, has been signed with Qatari National Bank (QNB), Doha Bank, and Masraf Al Rayan.
The telco said the funds will enable a “significant expansion” of capacity and the modernization of its data centers.
The funds will be allocated to carve out existing data center assets from Ooredoo’s telecom operations, with a “significant portion” directed toward expanding capacity and upgrading infrastructure to support the growing demand for cloud and AI.
“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,” said Aziz Aluthman Fakhroo, group CEO, Ooredoo. “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.”
Ooredoo currently operates 26 data centers across Qatar, Kuwait, Oman, Iraq, and Tunisia. The company plans to expand its capacity to more than 120MW through a $1 billion investment in the medium to long term.
Ooredoo Group is carving out its data centers into a new unit called Mena Digital Hub. The company appointed Sunita Bottse as the CEO of Mena Digital Hub in June. Reports surfaced back in 2022 that the telco was considering selling the unit.
Ooredoo said the new financing was the largest transaction – both in terms of value and tenor – ever achieved in Qatar’s tech sector.
Abdulla Mubarak Al-Khalifa, QNB group CEO, 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 centers in Qatar and the region. We expect the data center 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.”
