Sylvia Duruson
Ooredoo Group, the Qatar-based telecommunications giant, has secured a significant financial boost to accelerate its data center and artificial intelligence (AI) infrastructure expansion in the Middle East and North Africa (MENA)region. The company has signed a financing deal worth 2 billion Qatari Riyal (US$549 million) with QNB, Doha Bank, and Masraf Al Rayan.
This 10-year hybrid facility represents the largest transaction in Qatar’s tech sector by both value and duration. The funds will be strategically allocated to separate existing data center assets from Ooredoo’s telecom operations. A substantial portion of the investment will go towards expanding capacity and upgrading infrastructure to meet the growing demand for AI, cloud services, and hyperconnectivity in the MENA region.
Ooredoo currently operates 26 active data centers across Qatar, Kuwait, Oman, Iraq, and Tunisia. This extensive network provides a solid foundation for the company’s ambitious expansion plans. The new financing will enable Ooredoo to strengthen its position in these markets and potentially explore new territories within the MENA region.
Aziz Aluthman Fakhroo, CEO of Ooredoo Group, emphasized the strategic importance of this investment. He highlighted that the MENA region is one of the fastest-growing markets for data centers globally, with significant untapped potential in AI, cloud services, and accelerated computing. Fakhroo expressed excitement about meeting the region’s increasing demand while maintaining a commitment to sustainable and energy-efficient infrastructure.
This latest financing deal is part of Ooredoo’s broader strategy to enhance its presence and capabilities in the MENA region. In June 2024, the company became a Nvidia Cloud Partner (NCP), aiming to facilitate AI development in the area. This partnership positions Ooredoo at the forefront of AI infrastructure in the region, aligning with its goal to become an AI infrastructure heavyweight.
Earlier in January 2024, Ooredoo’s Algerian subsidiary signed a memorandum of understanding (MoU) with Algérie Télécom (AT). This agreement focuses on exchanging ideas for innovative services and sharing infrastructure, further solidifying Ooredoo’s collaborative approach to regional expansion.
The company’s strategic moves extend beyond data centers and AI. In December 2023, Ooredoo partnered with Zain and TASC Towers to establish what they claim will be the largest tower company in the MENA region. This diversification into telecommunications infrastructure demonstrates Ooredoo’s comprehensive approach to strengthening its market position.
Ooredoo’s substantial investment in data centers and AI infrastructure comes at a crucial time for the MENA region’s technological development. As businesses and governments increasingly rely on digital services, the demand for robust, high-capacity data centers and advanced AI capabilities is surging. Ooredoo’s expansion is poised to meet this growing need, potentially catalyzing further technological advancements and economic growth in the region.
The company’s focus on sustainable and energy-efficient infrastructure aligns with global trends towards environmentally responsible tech development. This approach could set a new standard for data center operations in the MENA region, balancing rapid growth with environmental considerations.
