Ooredoo secures $552m loan for data centre expansion

Qatar’s telecom major Ooredoo has secured a QR2 billion ($552 million) financing deal to accelerate the development of its data centres and artificial intelligence (AI) ventures.

Ooredoo and bank executives at the signing ceremony

The 10-year hybrid facility, comprising both commercial and Islamic tranches, was provided by Qatar National Bank, Doha Bank and Masraf Al Rayan.

The company claimed this is the “largest transaction in value and tenor” ever offered in the Gulf nation’s technology sector.

The Qatar- and Abu Dhabi-listed telco said the deal will enable a “significant expansion of capacity and the modernisation of its data centres”.

The funds will be allocated to carve out existing data centre assets from Ooredoo’s telecom operations, with a significant portion directed toward expanding capacity and upgrading infrastructure to meet the increasing demand for AI, cloud services and hyperconnectivity in the Mena region.

The Mena region is one of the fastest-growing markets for data centres globally, said Ooredoo Group CEO Aziz Aluthman Fakhroo.

There is significant untapped potential in AI, cloud services and accelerated computing, he added.

As part of its growth plan, Ooredoo’s data centre company plans to expand its capacity to over 120 megawatts through a $1 billion investment in the medium to long term.

The company has 26 active data centres across Qatar, Kuwait, Oman, Iraq and Tunisia.

In June, Ooredoo announced plans to use US tech company Nvidia’s AI technology in its data centres.

By Pramod Kumar