By Kimberley Kao

KKR plans to acquire a stake in one of the Middle East's largest data-center firms, as hyperscale and AI demand for infrastructure grows in the region.

KKR, one of the world's largest investment companies, plans to make the investment in United Arab Emirates-based Gulf Data Hub through its global infrastructure business via KKR-affiliated funds, according to a joint statement Friday.

This marks the firm's first data-center investment in the Middle East.

A dollar figure for the planned stake acquisition wasn't disclosed, but the two sides jointly pledged over $5 billion of total investment to build out data-center capacity in the region.

The multibillion-dollar investment aims to target the expansion in hyperscale demand, AI and digital-focused national priorities across the Middle East region, and support Gulf Data Hub's international growth plans.

The transaction marks one of the largest international investments into a U.A.E.-founded and managed business in the sector, according to the statement.

"The Middle East is a fast-growing region for hyperscale deployment," said Tara Davies, co-head of KKR EMEA, adding that KKR believes "it is today one of the most attractive investment destinations for long-term capital."

KKR's global data-center footprint spans the globe, including in countries such as the U.S., U.K. and Singapore. To date, KKR has invested more than $29 billion in relevant digital infrastructure companies across data centers and fiber, according to the statement.

Write to Kimberley Kao at kimberley.kao@wsj.com

(END) Dow Jones Newswires

January 17, 2025 04:44 ET (09:44 GMT)

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