Etisalat Group, UAE’s telecom company and G42, an Abu Dhabi-based artificial intelligence (AI) and cloud computing company have signed a binding agreement to merge their data center (DC) offering in the UAE.
A total of twelve data centers will be combined in a new joint venture business operating under Khazna Data Centers, creating the UAE’s largest data center provider.
G42 and Etisalat Group will own 60 percent and 40 percent, respectively, of Khazna Data Centers. Without affecting their commercial positioning, client relationships, or leading market positions, the agreement allows both parties to improve the value of their infrastructure assets contributed to the joint venture while also maximizing process and resource utilization.
Furthermore, Khazna Data Centers will continue to develop the existing business and explore new business opportunities, both in the UAE and abroad.
Mr. Hassan AlNaqbi, CEO of Khazna Data Centers, stated that the amount of data produced, stored, and processed in the Middle East region is expanding rapidly, resulting in major demand for wholesale data centers. This expansion necessitates a greater emphasis on collaboration and the use of shared data to generate business results.
“Today, Etisalat and G42 are embarking on a bold new journey which will allow us to leverage our investments and expertise to deliver next-generation digital infrastructure. Keeping in line with our overall strategy and vision of ‘Driving the Digital Future to Empower Societies’, we at Etisalat are committed to a total transformation of customer experiences. Etisalat Group today has set the foundation for creating a market leader in this space, and together with G42, we will take this to the next level.”
Mr. Peng Xiao, Group Chief Executive Officer of G42, commented, “We are honored to partner with a leading telecom operator like Etisalat Group and strengthen the UAE’s data center proposition. As data storage and cloud infrastructure demand continue to rise globally, this new partnership between Etisalat and Khazna, our data center business, will allow the country to accelerate into a new era of intelligence, resilience, flexibility and commerciality.”