Wed 20-10-2021 09:59 AM
ABU DHABI, 20th October, 2021 (WAM) -- Etisalat Group and G42 have announced the signing of a binding agreement to merge their data centre (DC) offering in the UAE. A total of twelve data centres will be combined in a new joint venture business operating under Khazna Data Centres, creating the UAE’s largest data centre provider.
G42 and Etisalat Group will each own 60 percent and 40 percent of Khazna Data Centres, respectively. The agreement allows both parties to increase the value of their infrastructure assets contributed to the joint venture while also optimising process and resource utilisation, without impacting their respective commercial positioning, client relationships and leading market positions.
Furthermore, Khazna Data Centres will continue to develop the existing business and explore new business opportunities, both in the UAE and abroad.
Hatem Dowidar, Chief Executive Officer of Etisalat Group, said, "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."
Peng Xiao, Group Chief Executive Officer of G42, commented, "We are honoured to partner with a leading telecom operator like Etisalat Group and strengthen the UAE’s data centre proposition and economic ambition for the future. As data storage and cloud infrastructure demand continues to rise in the UAE and globally, this new partnership between Etisalat and Khazna, our data centre business, will allow the country to accelerate its digital transformation journey, propelling public and private organisations into a new era of intelligence, resilience, flexibility and commerciality.
"We look forward to collaborating with Etisalat Group on this exciting initiative to create value for all stakeholders and unlock positive progress for the society at large."
Hassan AlNaqbi, CEO of Khazna Data Centres, stated that the levels of data produced, stored, and analysed is increasing exponentially in the Middle East region, driving significant demand for wholesale data centres. This growth requires a greater focus on collaboration and using shared data to drive business performance.
"Khazna Data Centres, with 300 MW of capacity, will be the crown jewel backing businesses’ growth trajectory and their ability to manage the level of connectivity required to effectively deliver services to partners, customers and users alike and support the creation of a digital ecosystem," he noted.
Salvador Anglada, Chief Business Officer of Etisalat Group, said, "Etisalat Group is excited to partner with an innovative and leading service provider such as G42. The combination of our data centre capabilities will deliver a unique portfolio of infrastructure services for current customers, and will also create a market leader for the future to global hyperscalers. We believe that this transaction will further strengthen the UAE as a preferred destination for global technology companies seeking world-class presence in the region, and propel the development of the digital ecosystem in support of the growth ambitions, which UAE is well-positioned to capitalise upon."
Closing of the transaction is subject to customary procedures, including finalisation of transaction documentation, regulatory approvals and certain administrative procedures.