Abu Dhabi: Etisalat Group and G42 announced the signing of 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 each own sixty per cent and forty percent of Khazna Data Centers, respectively. The agreement allows both parties to increase the value of their infrastructure assets contributed to the joint venture while also optimizing process and resource utilization, without impacting their respective commercial positioning, client relationships and leading market positions.
“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,” said Hatem Dowidar, Chief Executive Officer of Etisalat Group.
Expansion abroad
Khazna Data Centers will continue to develop the existing business and explore new business opportunities, both in the UAE and abroad.
“As data storage and cloud infrastructure demand continues to rise in the UAE and globally, this new partnership between Etisalat and Khazna, our data center business, will allow the country to accelerate its digital transformation journey, propelling public and private organizations into a new era of intelligence, resilience, flexibility and commerciality,” said Peng Xiao, Group Chief Executive Officer of G42.
“Khazna Data Centers, 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, customer and users alike and supporting the creation of a digital ecosystem,” said Hassan AlNaqbi, CEO of Khazna Data Centers.
Closing of the transaction is subject to customary procedures, including finalisation of transaction documentation, regulatory approvals and certain administrative procedures.
