Saudi Arabia’s Public Investment Fund (PIF) and I Squared Capital have signed a memorandum of understanding under which I Squared could deploy up to US$2 billion across infrastructure and real estate assets owned by PIF and its portfolio companies.

The two parties will assess opportunities in digital infrastructure and district cooling, with I Squared targeting investments of up to US$1 billion in each sector. The partnership could later expand into related areas.

The agreement is intended to bring more third-party capital into PIF-backed projects and support the delivery of developments across its portfolio. 

“PIF presents an unprecedented pipeline of real estate and infrastructure projects in the modern world, projects that continue to attract leading investors, foster sustainable value creation and generate commercially attractive returns,” said Saad Alkroud, head of local real estate investments at PIF. He added that the agreement combines PIF’s capabilities, scale and portfolio network with I Squared’s infrastructure investment and operating experience.

PIF is Saudi Arabia’s sovereign wealth fund and invests across sectors as part of the kingdom’s economic diversification strategy.

The fund also owns HUMAIN, an AI company launched in May 2025 to develop data centres, cloud infrastructure, AI models and enterprise services. Its work includes Arabic large language models and sector-specific AI products for public and private-sector customers.

In May, HUMAIN reportedly appointed Goldman Sachs to advise on a financing package for new data centres in Saudi Arabia. The funding could be worth at least 20 billion riyals, or about US$5.4 billion.

I Squared invests across energy, utilities, transport and logistics, digital infrastructure, and social and environmental assets.

The firm has recently expanded its data centre portfolio. In June, it completed the US$225 million acquisition of 10 US data centre facilities from Cogent Communications subsidiary Cogent Fiber. It has also agreed to acquire Elea Data Centers, one of Brazil’s largest carrier-neutral data centre platforms. 

“I Squared’s partnership with PIF reflects the relationship developed between the two institutions,” said Sadek Wahba, chairman and managing partner of I Squared Capital.

“The MoU is intended to move the partnership towards potential investments, with I Squared contributing its infrastructure experience to projects in Saudi Arabia.”