Global private equity firm KKR has joined forces with Dubai-based Gulf Data Hub (GDH) to invest over $5 billion in expanding data centre capacity across the Gulf region. This collaboration comes as the demand for digital infrastructure rises, driven by the growing adoption of cloud services and artificial intelligence in the region.

As The National reports, the investment marks KKR’s first venture into data centres in the Middle East. The New York-headquartered firm will also acquire a stake in GDH, though the financial details of this acquisition remain undisclosed. According to KKR’s website, the company’s infrastructure division manages assets worth $77 billion, while its total assets under management are about $624 billion as of late 2024.

The agreement was signed in the presence of Dr. Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, and Omar Al Olama, Minister of State for AI, Digital Economy and Remote Work Applications. Mr. Al Olama highlighted the UAE’s efforts in setting “a global benchmark for innovation and progress” through strategic investments and initiatives aimed at advancing technology.

GDH currently operates seven data centres in the UAE and Saudi Arabia, with plans to expand to Kuwait, Qatar, Bahrain, and Oman. This partnership with KKR is expected to significantly boost GDH’s presence in the Gulf and support its international growth. Tarek Al Ashram, GDH’s founder and CEO, stated that the collaboration will allow the company to leverage KKR’s expertise to achieve its regional and global ambitions.

The surge in remote working trends, accelerated by the Covid-19 pandemic, has increased data consumption worldwide. In the Middle East, the rise of tech-savvy young users and government-led efforts to enhance digital economies have further fuelled the demand for cloud and data services.

The region has already attracted major global players like Microsoft, Amazon, Oracle, IBM, and Alibaba Cloud, all of which have established cloud and data centres in the Gulf. Additionally, Abu Dhabi’s Khazna Data Centres is building a 100-megawatt data centre in Ajman, set to become the largest in the UAE.

Waldemar Szlezak, KKR’s global head of digital infrastructure, emphasized the importance of strategic investments in digital assets, calling them “the backbone of our data-driven society.”

KKR has been active in the Middle East for over 15 years, with offices in Dubai and Riyadh. Its previous regional investments include a partnership with Adnoc Oil Pipelines and the acquisition of a commercial aircraft portfolio from Etihad Airways in 2020.