Ooredoo secures $549M for MENA data center, AI expansion

Qatar-based Ooredoo Group has signed a 2 billion Qatari Riyal (US$549 million) financing deal to help fund its plan to accelerate its data center business in the Middle East and North Africa (MENA) region.

According to Ooredoo the deal will also help it establish itself as an artificial intelligence (AI) infrastructure heavyweight in the MENA region.

QNB, Doha Bank, and Masraf Al Rayan will finance a 10-year hybrid facility, which Ooredoo claims is the largest transaction in Qatar's tech sector by value and duration.

The company said the funds will be strategically allocated to carve out existing data center assets from its telecom operations, with a significant portion directed toward expanding capacity and upgrading infrastructure to support the growing demand for AI, cloud services, and hyperconnectivity in the MENA region.

Ooredoo operates 26 active data centers in Qatar, Kuwait, Oman, Iraq, and Tunisia.

QNB, Doha Bank, and Masraf Al Rayan will finance a 10-year hybrid facility, which Ooredoo claims is the largest transaction in Qatar's tech sector by value and duration.(Source: Image by benzoix on Freepik)

Ooredoo Group CEO Aziz Aluthman Fakhroo believes that the MENA region is one of the fastest-growing markets for data centers worldwide, with significant untapped potential in AI, cloud services, and accelerated computing.

"This financing deal marks a major milestone in our strategic vision for expanding our data center and AI business, and we are excited to meet the region's increasing demand while upholding our commitment to sustainable, energy-efficient infrastructure," he said.

Ooredoo's MENA expansions

Ooredoo's latest financing deal comes at a time when the company has been signing deals to enhance its visibility in the region.

In June 2024, the company signed a deal to become a Nvidia Cloud Partner (NCP) to enable the development of AI in the MENA region.

In January 2024, its Algerian subsidiary signed a memorandum of understanding (MoU) with Algérie Télécom (AT) to exchange ideas on innovative services and share infrastructure.

The MoU between Ooredoo and AT followed a December 2023 partnership involving Ooredoo, Zain, and TASC Towers to establish what they claimed would be the largest tower company in the MENA region.

*Top image is of from left to right: Ooredoo Group CEO Aziz Aluthman Fakhroo, QNB Group CEO Abdulla Mubarak Al-Khalifa, Masraf Al Rayan Group CEO Fahad Al Khalifa, and Doha Bank Group CEO Sheikh Abdulrahman bin Fahad bin Faisal Al Thani. (Source: Ooredoo Group.)

— Matshepo Sehloho, Associate Editor, Connecting Africa