Etisalat Group and Group 42 are to launch a joint venture (JV) to create the largest data centre provider in the UAE, the telecoms company said in a bourse filing today.

The JV will be 40 percent owned by Abu Dhabi-listed Etisalat and 60 percent by artificial intelligence and cloud computing company Group 42, after the two companies signed a binding agreement to combine their UAE data centres.

A total of 12 data centres will be combined and will operate under Khazna Data Centers, which is majority owned by sovereign investor Mubadala, with plans underway to provide more than 300 MW of capacity, making it the country’s largest data centre provider, according to Etisalat’s statement to Abu Dhabi Securities Exchange (ADX).

Speaking about the JV with G42, Etisalat said in its ADX statement: “It allows Etisalat Group to increase the value of its infrastructure assets contributed to the joint venture while also optimising process and resource utilisation, without impacting its commercial positioning, client relationships and leading market positions.

“The transaction will further strengthen the UAE as a preferred destination for global technology companies seeking world-class presence in the region, and propel the development of the digital ecosystem in support of the growth ambitions, which UAE is well-positioned to capitalise upon.”

The closing of the transaction is subject to conditions, regulatory approvals and administrative approvals, Etisalat said.

Mubadala also announced last year that it was acquiring a stake in G42.

(Writing by Imogen Lillywhite; editing by Daniel Luiz)

Imogen.lillywhite@refinitiv.com

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here. 

© ZAWYA 2021