Doha: Ooredoo Group announced a landmark QR 2 billion financing deal, on Wednesday, to accelerate the growth of its data center and AI business, enabling a significant expansion of capacity and the modernization of its data centers.
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 Qatar's tech sector, underscoring the confidence of leading financial institutions in Ooredoo's strategic vision.
It added that the funds will be strategically 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 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 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 regions 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 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 clo sely 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."
As for HE Doha Bank Group CEO Sheikh Abdulrahman bin Fahad bin Faisal Al-Thani, he stated, 'We are dedicated to supporting Ooredoo in its ambitious expansion of digital infrastructure through this financing deal. The growth of Ooredoo's data centers 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 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 USD 1 billion 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 centers across Qatar, Kuwait, Oman, Iraq, and Tunisia, Ooredoo continues to lead the Mena region's data center market. The company is committed to building a new generation of sustainable, energy-efficient data centers 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 Ooredoo's 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 NVIDIA's 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 NVIDIA's first large-scale launch in the region.
Source: Qatar News Agency