
KKR & Co. is poised to acquire a stake in Gulf Data Hub, recognized as one of the largest data center firms in the Middle East. This move aligns with the rising demand for digital infrastructure in an energy-rich region increasingly becoming a preferred investment location for global funds.
This investment is part of KKR’s broader global infrastructure strategy, but specific financial details were not released. However, it has been reported that $5 billion will be allocated to expand Gulf Data Hub regionally and internationally.
According to KKR, the growing need for data centers to support cloud computing and artificial intelligence is expected to drive global spending in this sector to about $250 billion per year. In recent years, KKR has been actively investing in the data infrastructure field, similar to other major firms like Blackstone and Brookfield Asset Management.
Founded in 2012 and based in Dubai, Gulf Data Hub aims to bolster the digital economy’s influence on the region’s gross domestic product. Currently, the company operates seven data centers in the UAE and Saudi Arabia, with plans for further expansion into other Gulf nations.
This investment in Gulf Data Hub represents one of the notable international commitments to a local business within the UAE. Several companies, including Uber and Amazon, have made strategic investments in the region in recent years. KKR has previously funded projects such as Abu Dhabi’s national oil company’s oil pipelines and aircraft from the country’s flagship airline.
The Persian Gulf’s vast energy reserves and significant capital are solidifying its status as a hotbed for international investments. Firms from various sectors, including hedge funds and private equity, are broadening their presence in key regional financial hubs like Abu Dhabi and Riyadh.
Moreover, the ongoing competition between the UAE and Saudi Arabia to establish themselves as leaders in artificial intelligence is driving a rapid development of data centers to accommodate this technology’s growing needs.
Tara Davies, Co-Head of KKR EMEA, emphasized that the Middle East is becoming increasingly attractive for long-term capital investments. As of September 30, KKR’s global infrastructure strategy managed assets worth approximately $77 billion, having invested over $29 billion across 22 digital infrastructure projects, including data centers and fiber networks, in addition to $15 billion in power, utilities, and energy sectors.
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