Gibson Dunn has successfully advised KKR, a global leader in private equity, on its groundbreaking investment in Gulf Data Hub (GDH), one of the largest independent data centre platforms in the Middle East. This marks KKR's first venture into the region's data centre sector, and the companies have committed to investing over $5 billion to further strengthen GDH’s market leadership.

The announcement was made at a signing ceremony held in Dubai, attended by His Excellency Omar Sultan Al Olama, the UAE’s Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications. He remarked, “The UAE exemplifies visionary leadership, driving digital and AI capabilities to new heights. By transforming ambitious visions into the achievements we are witnessing today, it sets a global benchmark for innovation and progress. Through groundbreaking initiatives and strategic investments, the UAE is shaping a future where technology enhances lives, fuels economic prosperity, and unlocks boundless opportunities.”

Al Olama further emphasized, “This milestone underscores the strength of the UAE’s digital economy, enhances the journey of growth, and aligns with the National Strategy for Digital Economy. Building on the momentum of 2024, marked by the launch of numerous data centers, it represents a strong start to 2025 and reaffirms the UAE’s dedication to strengthening its digital infrastructure.”

KKR’s Strategic Investment in GDH

The partnership between KKR and GDH is set to further enhance the latter’s established presence in the region, with plans for rapid expansion. Tarek Al Ashram, Founder and CEO of Gulf Data Hub, stated, “Today marks a milestone in our growth journey as we welcome KKR, a global leader in digital infrastructure investing, as a strategic partner in our business. Over the past 12 years, GDH has grown into one of the most successful data centre platforms in the region, supporting the business needs of sophisticated cloud and enterprise software customers. The strategic partnership with KKR will enable us to leverage their deep expertise, positioning us to achieve our pan-regional ambitions and deliver on our mandate of being a partner and provider of choice.”

This strategic partnership aligns with KKR’s commitment to the Middle East, a region it believes is primed for long-term digital growth. Tara Davies, Co-Head of KKR EMEA and Co-Head of European Infrastructure, added, “The Middle East is a fast-growing region for hyperscale deployment. With competitively priced and readily available sources of energy, an unmatched ability to serve as a gateway hub for Asia and Africa, and sustained government commitment to power the growth of the digital sector, we believe it is today one of the most attractive investment destinations for long-term capital. Our investment in GDH aligns with our conviction in digital infrastructure and enables us to leverage our global connectivity to drive value and accelerate the growth of a leading business in the region.”

KKR’s Proven Track Record in the Middle East

KKR has a longstanding presence in the Middle East, with offices in both Dubai and Riyadh, and a solid history of impactful investments in the region. Notable past ventures include a strategic partnership with ADNOC, which led to the establishment of ADNOC Oil Pipelines. This marked the first collaboration in midstream infrastructure between a prominent global institutional investor and a national oil company in the region.

Additionally, in 2020, KKR expanded its portfolio through a deal with Etihad Airways, acquiring a collection of commercial aircraft via Altitude Aircraft Leasing, a platform established by KKR’s credit and infrastructure funds.

KKR's Global Digital Infrastructure Strategy

KKR has been a pioneer in the global digital infrastructure sector. Since launching its infrastructure strategy in 2008, KKR has become one of the leading infrastructure investors worldwide, managing $77 billion in assets as of September 30, 2024.

The firm has already committed $29 billion to 22 investments in key digital infrastructure companies, including data centres and fiber networks, alongside an additional $15 billion invested in the power, utilities, and energy sectors. This latest partnership with GDH further solidifies KKR's position in the digital infrastructure space.

Gibson Dunn’s Role in the Transaction

Gibson Dunn’s cross-border team played a critical role in advising KKR on this transaction. The team was co-led by Federico Fruhbeck, Co-Chair of Private Equity in Europe, and Renad Younes, Partner in Charge of the Abu Dhabi office. The team also included Jakob Egle, Manjinder Tiwana, Andrea Callá, Gisele Zouein, and Krishna Parikh, with additional support from Anthony Forde and Lena Tarrin in the Corporate and Private Equity teams.

Additional support came from Alice Brogi and Trinh Chubbock (Projects and Infrastructure), Penny Madden (Litigation), Mohamed Al Hasan (regulatory in KSA), Sandy Bhogal (Tax), Bridget English, Cheryl T. Yip (Tax), and Elizabeth Wood (due diligence on financing and share pledge).