Ooredoo Group has announced a QAR 2 billion or $550 million financing deal to bolster the growth of its data centre and AI business.
Ooredoo has signed the financing deal with QNB, Doha Bank, and Masraf Al Rayan. The 10-year hybrid facility, which comprises commercial and Islamic tranches, is the largest transaction – both in terms of value and tenor – ever achieved in Qatar’s tech sector.
Ooredoo says the funds will be allocated to spin off existing data center assets from Ooredoo’s telecom operations. Ooredoo will set aside a significant portion of the funding toward expanding capacity and upgrading infrastructure to support the growing demand for AI, Coud services, and hyperconnectivity.
Aziz Aluthman Fakhroo, Group CEO, Ooredoo, said: “This financing deal marks a major milestone in our strategic vision for expanding our data center and AI business.”
Ooredoo’s Data Centre company plans to expand its capacity to over 120 megawatts through a $1 billion investment to meet increasing demand for localised Cloud services and IT workloads, particularly from hyperscalers.
Ooredoo has 26 data centers across Qatar, Kuwait, Oman, Iraq, and Tunisia. Ooredoo is the leader in the MENA region’s data center market.
The Middle East data center market is expected to reach $9.61 billion by 2029, rising at a CAGR of 9.52 percent, from $5.57 billion in 2023.
Equinix, center3 (STC), Gulf Data Hub, Mobily, Khazna Data Centers, Ooredoo, and others are among the main investors in the Middle East data center market.
Ooredoo has partnerships with hyperscalers to offer cloud-based solutions including Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS).