US firm and Gulf Data Hub eye over $5bn investment
20 January 2025
Dubai-based Gulf Data Hub (GDH) and US-headquartered investment firm KKR have announced that funds affiliated with KKR will acquire a stake in the data centre operator.
In a statement, KKR said the two firms "have committed to support over $5bn of total investment to grow GDH's market leading position and to support its international growth plans through organic and inorganic strategies".
The investment will require customary approvals and is being made through KKR's global infrastructure strategy.
Founded in 2012 in Dubai, GDH is one of the largest independent carrier and vendor-neutral data centre platforms in the Middle East with significant operating capacity and a pipeline of projects.
It has seven "purpose-built and state-of-the-art" data centres in the UAE and Saudi Arabia, and additional facilities planned in Kuwait, Qatar, Bahrain and Oman.
Photo credit: KKR
GDH aims to deliver the infrastructure required to meet hyperscale demand across the region to support increasing data consumption driven by the growing trends in digital connectivity, cloud and artificial intelligence (AI).
Omar Sultan Al-Olama, UAE’s Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications, witnessed the signing ceremony between KKR and GDH in Dubai.
He said the milestone "underscores the strength of the UAE’s digital economy, enhances the journey of growth, and aligns with the National Strategy for Digital Economy".
He added that the milestone builds on the 2024 momentum where numerous data centre projects were launched in the UAE.
It "represents a strong start to 2025 and reaffirms the UAE’s dedication to strengthening its digital infrastructure", said Al-Olama.
Data centre construction boom
The UAE, Saudi Arabia and Qatar, have a booming data centre market, thanks to their governments’ drive to set up regional AI hubs, increase digital adoption and improve efficiencies in line with their economic diversification agendas.
The Middle East data centre construction market is projected to reach $4.39bn by 2029, growing at a compound annual growth rate of 10.99%.
According to GlobalData, total investment in data centres globally reached $70.6bn in 2024 and is projected to grow by 5% to $74.3bn in 2025.
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