Gulf Data Hub Enters Strategic Partnership with KKR
Deal News | Jan 17, 2025 | Zawya
Gulf Data Hub (GDH) and KKR, a leading global private equity firm, have announced a strategic partnership where KKR will acquire a stake in GDH. This investment, subject to regulatory approval, is made through KKR's Global Infrastructure strategy, positioning this as one of the largest international investments in a UAE-founded and managed business. The partnership aims to support over $5 billion of total investment to bolster GDH's market position, enabling both organic and inorganic growth. This agreement symbolizes the UAE's progressive digital and AI leadership. Omar bin Sultan Al Olama, UAE's Minister of State for Artificial Intelligence, emphasized the growing strength of the UAE's digital economy and its alignment with the National Strategy for Digital Economy. GDH CEO Tarek Al Ashram sees this as a milestone for GDH's growth, leveraging KKR's expertise to fulfill regional ambitions, while KKR executives highlight the Middle East's potential for digital infrastructure expansion. This deal fortifies KKR's commitment to the Middle East, following their notable investments in ADNOC Oil Pipelines and work with Etihad.
Sectors
- Digital Infrastructure
- Investment Management
Geography
- United Arab Emirates – The article discusses a major investment in a UAE-founded company, emphasizing the UAE's role in the digital economy and infrastructure.
- Middle East – The investment underlines the Middle East's growth potential in digital infrastructure and is part of KKR's strategy to invest in the region.
Industry
- Digital Infrastructure – The article focuses on investments in digital infrastructure, as Gulf Data Hub is a prominent data center platform, and KKR's investment is part of its infrastructure strategy.
- Investment Management – KKR, a global investment firm, is making a significant investment in Gulf Data Hub, indicating activities in the investment management sector.
Financials
- US$5 billion – The committed total investment by KKR and Gulf Data Hub to support growth and market position.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gulf Data Hub | Target | Company | A leading data center platform in the Middle East, Gulf Data Hub supports the business needs of cloud and enterprise software customers. |
| KKR | Bidding Company | Company | A global investment firm involved in acquiring a stake in Gulf Data Hub through its Global Infrastructure strategy. |
| Omar bin Sultan Al Olama | Government | Person | Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications in the UAE, who commented on the transaction. |
| Tarek Al Ashram | CEO | Person | Founder and CEO of Gulf Data Hub who discussed the strategic partnership with KKR. |
| Tara Davies | Co-Head of EMEA and European Infrastructure | Person | KKR executive expressing the rationale and significance of their investment in Gulf Data Hub. |
| Waldemar Szlezak | Global Head of Digital Infrastructure | Person | KKR executive highlighting the strategic importance of digital infrastructure investments. |