Qatar’s telecom company Ooredoo Group has launched a financing agreement worth QAR2 billion ($551.9 million) aimed at propelling the growth of its data center and AI sectors. This initiative will allow for substantial capacity expansion and the modernization of existing data center facilities.

According to a statement, the financing arrangement has been established with QNB, Doha Bank, and Masraf Al Rayan. This 10-year hybrid facility, which includes both commercial and Islamic components, represents the largest deal—by value and duration—ever completed in Qatar’s technology sector, reflecting the strong confidence that prominent financial institutions have in Ooredoo’s strategic roadmap.

The allocated funds will focus on separating current data center assets from Ooredoo’s telecommunications operations, with a large portion dedicated to increasing capacity and enhancing infrastructure to meet the rising demand for AI, cloud services, and hyperconnectivity within the MENA region.

MENA market potential 

Aziz Aluthman Fakhroo, group CEO, Ooredoo, 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 region’s increasing demand while upholding our commitment to sustainable, energy-efficient infrastructure. 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.”

Projected growth of the region’s data center market

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 centrers 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.”

Driving technological progress

Fahad Al Khalifa, group CEO, Masraf Al Rayan, 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.”

Transformative impact on the tech sector

Sheikh Abdulrahman bin Fahad bin Faisal Al Thani, group CEO, Doha Bank, stated: “We are dedicated to support 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.”

Capitalizing on generative AI

Ooredoo’s Data Center division was created to lead the digital transformation in the region by delivering state-of-the-art colocation services to hyperscalers and enterprises. Moreover, as part of its growth strategy, the company intends to elevate its capacity to over 120 megawatts through a $1 billion investment in the medium to long term. This expansion is designed to better accommodate the growing need for localized cloud services and IT workloads, particularly from hyperscalers.

Read more: Ooredoo Qatar upgrades to Oracle Exadata Cloud@Customer, pioneering AI-driven innovation

With 26 active data centers situated across Qatar, Kuwait, Oman, Iraq, and Tunisia, Ooredoo maintains its position as a frontrunner in the MENA region’s data center market. The company is dedicated to developing a new generation of sustainable, energy-efficient data centers that will securely handle IT workloads for governments, hyperscalers, enterprises, and startups, thus fostering innovation and AI integration across the region.

This financing deal will further elevate Ooredoo and its Data Center division to the forefront of companies poised to capitalize on the surge of generative AI, reinforcing Ooredoo’s status as the leading digital infrastructure provider in the area.

Expanding cloud-based solutions

Furthermore, Ooredoo Group has established strong partnerships with hyperscalers, allowing the company to offer a range of 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, aimed at utilizing NVIDIA’s advanced accelerated computing platform to facilitate the AI revolution across the MENA region and provide sovereign cloud solutions to governments and enterprises. This agreement marked NVIDIA’s first large-scale launch in the region.

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