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  Edgnex acquires Nordic data centre developer

  2 April 2025

  Edgnex, a subsidiary of Dubai-based property developer Damac, has acquired Helsinki-headquartered data centre-focused real estate developer Hyperco as part of its European expansion strategy.

  Damac announced the acquisition on 31 March.

  Hyperco operates data centres in Finland and Sweden, "leveraging the region’s renewable energy sources, mature digital ecosystem, and high connectivity", local media reports cited.

  Hyperco's three co-founders and existing team will continue to lead operations through the next phase of growth, according to the statement.

  Hussain Sajwani, founder of Damac Group, said his firm plans to "build a significant future capacity in the Nordics and establish a strong foothold in the market".

  Edgnex’s recent European activities include a €150m joint venture in Greece with Public Power Corporation (PPC) to develop a 12.5MW facility, expandable to 25MW, and a €400m commitment to build a 40MW data centre in Madrid, Spain.

  In January, Sajwani pledged $20bn to develop data centres across the US.

  Sajwani and US President-Elect Donald Trump announced the plan on 7 January in Florida, a day after the US Congress certified Trump as the US 2024 presidential election winner.

  The project’s initial phase covers establishing data centres in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan and Indiana.

  It was previously reported that the Dubai-based property developer plans to develop $1bn-worth of data centres in countries in Europe, Asia, Africa, the Middle East and the Commonwealth of Independent States.

  Edgnex is constructing two data centre facilities in Dammam and Riyadh in Saudi Arabia that will deliver 55MW by 2025. There are also plans for a data centre in Amman, Jordan, and another in Turkiye in partnership with Vodafone.

  In May, Damac announced its entry into the Indonesian market with plans to build a 15MW data centre in Jakarta. Located along MT Haryono, the facility is scheduled to complete its first construction phase in the fourth quarter of 2025.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13602668/main.jpg

  Jennifer Aguinaldo
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  Developers prepare Saudi round six solar IPP bids

  2 April 2025

  Prequalified developers are forming teams that can bid for the contracts to develop solar farms under the sixth round of Saudi Arabia's National Renewable Programme (NREP).

  MEED understands bids are due for the four solar photovoltaic (PV) independent power projects (IPPs) by 1 June.

  The four solar IPPs have a combined capacity of 3,000MW.

  The 1,400MW solar photovoltaic (PV) IPP is located in Najran, while the smallest, the 400MW Al-Sufun solar IPP, is in Hail.

  The 600MW Samtah and 600MW Al-Darb solar IPPs are located in Jizan, a region under security-related travel alerts by some countries and international firms.

  Most prequalified bidders participated in the site visits, which Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), conducted in late January.

  SPPC prequalified 16 companies that can bid as managing and technical members for the solar PV contracts. These are:

  • Abu Dhabi Future Energy Company (Masdar, UAE) 
  • Alfanar Company (local)
  • EDF Renewables (France)
  • Kahrabel (Engie, France)
  • FAS Energy (local)
  • Jinko Power (Hong Kong)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Nesma Renewable Energy (local)
  • SPIC Hunaghe Hydropower Development (China)
  • Sumitomo Corporation (Japan)
  • TotalEnergies Renewables (France)
  • AlJomaih Energy & Water (local)
  • Sembcorp Utilities (Singapore)
  • AlGihaz Holding Company (local)
  • Korea Western Power Company (Kowepo, South Korea)

  The following five companies have been prequalified to bid as managing partners:

  • Jera Nex (Japan)
  • Power Construction Corporation of China (PowerChina)
  • China Power Engineering Consulting Group International Engineering (China)
  • Posco International (South Korea)
  • Saudi Electricity Company (SEC, local)

  Round six of the NREP will have a total combined capacity of 4,500MW, including the 1,500MW Dawadmi wind farm, for which a separate set of bidders had been prequalified.

  SPPC issued the prequalification request for the NREP round six in September last year and received statements of qualifications from interested developers and developer consortiums the following month.

  SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

  US/India-based Synergy Consulting is the client's financial adviser for the NREP sixth-round tender. Germany’s Fichtner Consulting and US-headquartered CMS are the technical and legal consultancy services, respectively.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13602412/main.jpg

  Jennifer Aguinaldo
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  Mitsubishi Power confirms Rumah 1 and Nairiyah 1 deal

  2 April 2025

  Mitsubishi Power, part of Japan’s Mitsubishi Heavy Industries, has confirmed it has received two orders to supply six M501JAC gas turbines for the Rumah 1 and Al-Nairiyah 1 power generation projects in Saudi Arabia.

  Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15. Nairiyah 1 is located in the Eastern Region.

  The scope includes the supply of generators and auxiliary equipment, Mitsubishi Power said in a statement.

  MEED exclusively reported that the Japanese original equipment manufacturer had been selected to supply its gas turbines for the independent power project (IPP) in November last year.

  A consortium comprising the local Saudi Electricity Company (SEC) and Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop the Rumah 1 and Al-Nairiyah 1 IPP the same month.

  The power plants will deliver a combined 3.6GW, accounting for nearly 2.5% of the national grid’s capacity.

  The M501JAC turbines will be assembled at Mitsubishi Power Saudi Arabia’s Dammam factory.

  The 17,730 square-metre facility also provides services for gas turbine components.

  According to Mitsubishi Power, the plant features "a majority of Saudi employees, in line with the firm’s Saudi National programme".

  China’s Sepco 3 and South Korea's Doosan Enerbility will undertake the engineering, procurement and construction (EPC) contract for the projects, as MEED reported.

  The SEC, Acwa Power and Kepco team offered a levelised electricity cost (LCOE) of $cents 4.5859 a kilowatt-hour ($c/kWh) for Rumah 1 and 4.6114 $c/kWh for Al-Nairiyah 1.

  Acwa Power said that the two IPPs will require a combined investment of approximately SR15bn ($4bn). The IPPs are expected to reach commercial operations in Q2 2028. 

  Saudi Power Procurement Company (SPPC) received bids for the contracts for four thermal IPPs – the other two being the similarly configured Rumah 2 and Al-Nairiyah 2 – in August last year.

  The four power generation facilities will be developed using a build, own and operate model over 25 years. 

  SPPC’s transaction advisory team for the Rumah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

  Photo credit: Mitsubishi Power (for illustrative purposes only)

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13599792/main4910.jpg

  Jennifer Aguinaldo
• 
  Riyadh takes the diplomatic initiative

  2 April 2025

  

   

  Saudi Arabia has been at the centre of regional diplomatic activity through the early months of 2025, positioning itself as an intermediary in the Ukraine conflict and at the forefront of engagement with the new regime in Syria.

  The role of regional mediator is one that has in recent years been more closely associated with Qatar – particularly in relation to the Gaza conflict – and, on occasion, Oman.

  Riyadh’s decision to throw its weight behind diplomatic initiatives is part of what Abdulaziz Sager, chairman of the Saudi-based Gulf Research Centre, has described as a “bold multi-alignment strategy”, which seeks to balance Riyadh’s economic and security concerns and its regional leadership ambitions.

  Multipronged initiatives

  The kingdom has gained plaudits for its efforts to resolve the Ukraine war in particular. Following his talks with Crown Prince Mohammed Bin Salman (MBS) in Jeddah on 11 March, Ukraine’s President Volodymyr Zelenskyy said: “Saudi Arabia provides a crucial platform for diplomacy, and we appreciate this.”

  Zelenskyy added that he had “a detailed discussion on the steps and conditions needed to end the war” with the crown prince.

  The previous month, US secretary of state Marco Rubio had said Saudi Arabia had played an “indispensable role” in setting up bilateral negotiations between Moscow and Washington to discuss the conflict.

  Russia’s President Vladamir Putin has also praised the Saudi leadership for providing a platform for high-level meetings with the US and “creating a very friendly atmosphere”.

  Whether all this leads to a lasting peace deal for Ukraine remains to be seen, but Saudi Arabia’s attitude to conflict may be coloured somewhat by its own experiences over the past decade in Yemen.

  It is now 10 years since it launched a bombing campaign against Yemen’s Houthi rebels in March 2015, and the war has not gone as Riyadh had hoped, with the Houthis proving far more resilient than anticipated.

  Saudi Arabia’s southern border has at least been relatively quiet since a truce took hold in 2022, but a comprehensive peace deal has proved elusive.

  Riyadh has also been re-engaging in the Levant this year, in light of the new regime in Damascus.

  The new Syrian president Ahmed Al-Sharaa travelled to Riyadh in early February, on his first trip abroad since taking power. Saudi Foreign Minister Prince Faisal Bin Farhan had been in Damascus a week earlier.

  There are some key issues at stake for Riyadh. The regime of President Bashar Al-Assad had overseen the industrial-scale production of the amphetamine-type stimulant Captagon, much of which was smuggled into Saudi Arabia and other Gulf states. Saudi efforts to disrupt the trade – both at its borders and via lobbying of the Syrian authorities – had failed to stem the flow of drugs.

  In addition, Hasan Alhasan, senior fellow for Middle East Policy at the International Institute for Strategic Studies, has pointed out that between 500,000 and 2.5 million de facto Syrian refugees are thought to be living in Saudi Arabia – a fact that gives Riyadh a clear interest in Syria’s stability, particularly if it wants to encourage them to return home.

  “Saudi Arabia views the fall of the Assad regime as an opportunity to reassert its influence in the Levant,” he asserted in a recent commentary.

  The ousting of Assad in late 2024 and the recent Israeli campaign against Hezbollah has also changed the situation on the ground in Lebanon, encouraging Saudi Arabia to reconsider its approach there too.

  MBS hosted Lebanon’s recently elected President Joseph Aoun on 3 March. Following their meeting, Saudi Arabia said it would look again at allowing Lebanese exports to Saudi Arabia and letting its own citizens travel to Lebanon.

  Manoeuvring around Trump

  The Saudi diplomatic push may also be motivated by a desire to ensure that relations with Washington remain on a positive footing in the wake of Donald Trump’s re-election as US president.

  At first, it appeared that the bilateral relations would follow a similar pattern to Trump’s first term.

  In January, MBS said in a phone call with Trump that Saudi Arabia was planning to invest some $600bn in the US over the coming four years, which the US president suggested should probably be increased to $1tn. This echoed the signing of $460bn-worth of defence deals when Trump made Saudi Arabia his first foreign trip as president in May 2017.

  Riyadh appears to have conceded to Trump’s higher figure, with the US president saying in early March: “I said I'll go if you pay $1tn to American companies, meaning the purchase over a four-year period of $1tn, and they've agreed to do that. So, I'm going to be going there.”

  However, other aspects of the bilateral relationship are more difficult and less predictable. Trump had been pushing Saudi Arabia to join Bahrain, the UAE and Morocco in normalising relations with Israel, but in light of the war in Gaza and Trump’s own plans for the ethnic cleansing of Palestinians from the strip, that looks like a stretch too far.

  Trump will nevertheless have been pleased by the decision by Saudi Arabia and the other members of the Opec+ bloc in early March to unwind some of the production restrictions they had voluntarily agreed.

  From April onwards, the eight-strong group will start to bring 2.2 million barrels a day back onto the market over the course of 18 months. That fits in with Trump’s call in January, soon after taking office, for Riyadh and Opec to do more to help bring oil prices down.

  However, that decision may also create fiscal challenges for the Saudi government, as any rise in production could be more than offset by lower prices.

  Saudi Aramco has announced plans to trim its dividend payouts this year to $85.4bn – down from $124bn in 2024. These payments are a vital source of revenues both for the central government and for its Public Investment Fund (which holds a 16% stake in Aramco)

  All that could force some public sector spending constraint in the kingdom, in a sign that balancing diplomacy and financial interests is not always straightforward.

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  MEED’s April 2025 report on Saudi Arabia includes:

  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > BANKING: Saudi banks work to keep pace with credit expansion

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13483143/main.gif

  Dominic Dudley
• 
  Investing in Saudi Arabia’s infrastructure opportunities

  2 April 2025

  

   

  With a background in private banking and asset management, Edmond de Rothschild is an established player in infrastructure investment. Since launching its infrastructure platform in 2014, the firm has raised over $6.5bn, ranking among Europe’s top infrastructure debt investors.

  The bank prides itself on a conviction-led approach. “We at Edmond de Rothschild are a company that has convictions. Private markets are not a broad, generalist approach for us; we adopt a highly focused strategy, particularly in infrastructure,” says Jean-Francis Dusch, CEO of Edmond de Rothschild Asset Management UK and global head of infrastructure and structured finance.

  This strategic approach has allowed Edmond de Rothschild to establish itself as a key player in infrastructure finance, growing from a small team of fewer than 10 people in 2014 to one that has now raised billions in capital. “We decided to focus first on real estate, then private equity with very specific strategies, and finally infrastructure, where we maintain a global approach,” says Dusch.

  Edmond de Rothschild initially engaged in advisory services for governments and private consortiums, providing expertise in project implementation. The firm’s work in the public-private partnership (PPP) space led to the development of a dedicated infrastructure lending platform. “In less than 10 months from the initial idea being discussed, we raised $400m. Fast forward to today, and we have now raised more than $6.5bn, positioning us as a major player in infrastructure debt,” says Dusch.

  Saudi infrastructure

  Saudi Arabia’s Vision 2030 has set the stage for significant infrastructure development, and Edmond de Rothschild is positioning itself to play a crucial role. “Saudi Arabia is already the largest infrastructure market in the region, and we see significant opportunities to contribute,” says Dusch.

  A major part of Edmond de Rothschild’s approach focuses on debt financing rather than equity. “The platform I represent is dedicated to debt. There has been a lot of equity investment from the kingdom and the strong regional banks, as well as large global banks. However, as infrastructure investment accelerates, we anticipate a liquidity gap that we can help bridge,” says Dusch.

  This is particularly relevant given Saudi Arabia’s ambitious infrastructure programmes. “With Vision 2030 driving development, the need for private liquidity will increase. Our goal is to provide that liquidity in a structured way, supporting sustainable capital structures while ensuring robust returns for investors,” he says.

  To reinforce its commitment, Edmond de Rothschild has established a local joint venture in Saudi Arabia.

  The firm takes a diversified approach to infrastructure, ensuring it remains at the forefront of evolving sector trends. “Ten years ago, infrastructure was primarily about transport and social infrastructure,” says Dusch. “But we have always believed it also includes renewable energy, digital infrastructure and decarbonisation efforts.” 

  The shift toward digital infrastructure has been particularly notable. “The rise of AI and data-driven technologies has increased demand for digital infrastructure. Sustainable data centres, fibre optics and digital connectivity are becoming key pillars of modern infrastructure investment,” says Dusch.

  Edmond de Rothschild’s portfolio comprises a mix of greenfield and brownfield infrastructure projects. “As a project financier, our natural inclination is to focus on new projects. However, when managing
  investor capital, we also look at brownfield projects that require modernisation. About 30% of our portfolio is greenfield, and 70% is brownfield,” says Dusch.

  This focus aligns with the evolving nature of infrastructure investment. “Assets need to be modernised,
  especially in energy transition and digitalisation,” he says. “Many brownfield projects are still in a growth phase, so while they are technically existing assets, they require significant new investment.”

  Broader region

  While Saudi Arabia is the focus, Edmond de Rothschild is also eyeing broader regional expansion. “Our goal is to develop a multibillion-dollar infrastructure programme in the region, as we did in Europe. The first step is Saudi Arabia, where we have strong local partners. However, we aim to expand our coverage to other GCC countries over time,” says Dusch.

  We don’t need to do everything – we focus on areas where we can add real value

  This approach mirrors the firm’s European expansion strategy. “In Europe, we started with a focused mandate in core markets and gradually expanded,” he says. “We plan to follow a similar trajectory in the Middle East, leveraging our experience and track record to drive growth.”

  One of the critical questions for international investors is whether Saudi projects are investment-ready. “It’s a mix,” he acknowledges. “Like in Europe, large programmes are announced, and while not every project is immediately ready, there is a concrete pipeline of opportunities.”

  Edmond de Rothschild sees particular potential in small to mid-sized projects. “The debt instruments we offer are currently more suited to small and medium-sized projects rather than megaprojects. However, as the market evolves, we anticipate broader participation,” he says.

  Saudi Arabia’s infrastructure financing model is also undergoing a shift. “Previously, infrastructure was largely government-led with a first-generation PPP approach. Now, we are seeing more private sector initiatives. Europe has largely transitioned to private infrastructure development, and Saudi Arabia is following a similar path,” says Dusch.

  Long-term commitment

  With infrastructure demand growing across sectors, Edmond de Rothschild will remain selective with its strategy. “We don’t need to do everything – we focus on areas where we can add real value. That is what has made us successful, and that’s the approach we will continue in Saudi Arabia and beyond.” 

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  MEED’s April 2025 report on Saudi Arabia includes:

  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > BANKING: Saudi banks work to keep pace with credit expansion

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13550738/main.jpg

  Colin Foreman