Etisalat Group and Group 42 (G42) have signed a binding agreement to merge their data centre offering in the UAE.

A total of twelve data centres will be combined in a new joint venture business operating under Khazna Data Centres set to create the UAE’s largest data centre provider with 300 MW of overall planned capacity.

G42, which acquired Khazna Data Centres in November 2020 from Dubai-based telco EITC with its Emirati state-owned holding company Mubadala Investment, and Etisalat Group will each own 60% and 40% 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 market positions.

Khazna Data Centres will continue to develop the existing business and explore new business opportunities, both in the UAE and abroad, the parties clarified.

Hatem Dowidar, Chief Executive Officer of Etisalat Group, said: “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.”

Also commenting, Peng Xiao, Group Chief Executive Officer of G42, said: “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.

Khazna – meaning ‘Safe’ in Arabic – has three facilities, located in the UAE in Abu Dhabi and Dubai currently delivering a combined IT load of 40MW.

Hassan AlNaqbi, CEO of Khazna Data Centres, said: “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.”

Closing of the transaction is subject to customary procedures, including finalisation of transaction documentation, regulatory approvals and certain administrative procedures.