As a top wholesale data center service provider in the Middle East, Khazna data center experienced major shifts in its corporate organization. Communication company e& (formerly Etisalat) sold its 40% stake in Khazna to G42 which is an Abu Dhabi-based technology company for an agreement of $2.2 billion. The sale transaction will grant e& $1.4 billion from capital gains before taxing as a corporation and paying federal royalty expenses.
The divestment of e& does not impact its strategic partnership role with Khazna because the company continues to be its key user of advanced digital infrastructure solutions. Khazna welcomes two new minority investors to its group including MGX and Silver Lake who bring their expertise in technology investments from both the UAE and the United States. Khazna uses this strategic investment to strengthen its position in the fast-growing data center market as the company obtains supplementary funding and specialized knowledge to advance its growth and inventive efforts.
Khazna Data Centers Announces New Investors
Wholesale data center services provider Khazna Data Centers has gained new minority investors through the addition of MGX and Silver Lake. The United Arab Emirates-based technology investment company MGX joins forces with international technology specialist Silver Lake which operates from the United States. The addition of investors MGX and Silver Lake serves as a strategic business plan to help Khazna strengthen its data center AI market position.
Khazna expects to benefit from these new investor groups which will supply the company with supplementary financial resources alongside existing technological expertise to unlock growth. Through these investments, Khazna demonstrates its dedication to strengthening its infrastructure along with its service capabilities that address rising data storage and processing needs in the region.
e& Exits: Strategic Shift in Ownership
The telecoms company e& sold its Khazna Data Centers 40% share to G42 for $2.2 billion. The capital gain from this transaction will produce $1.4 billion before e& pays federal royalty and corporate tax.
e& continues to play a strategic business role as a Khazna data center management partner after exiting its ownership position. The permanent business partnership shows e& will collaborate with G42 to develop advanced data center solutions as the company directs its business toward digital infrastructure strategies.
Impact on Khazna’s Growth and Market Position
The investment made by G42 in e&’s stake combined with the entrance of MGX and Silver Lake as investors will position Khazna for increased data center expansion for market strength. These recent developments will strengthen Khazna’s delivery capabilities of advanced data center solutions which aims to make it a dominant leader within the Middle East’s digital infrastructure market.
These strategic investors provide Khazna with the necessary funds to speed up its strategic expansion and enhance its service range to meet regional demands for data center services. The UAE has established this initiative because it wants to develop into a worldwide technology destination.
Middle East Data Center Expansion Plans
The company Khazna persists in building new facilities across the Middle East region. The company announced in 2023 that it would enter the Egyptian market through its collaboration with Benya Group for building the first hyper-scale data center at Maadi Technology Park at an investment amount of $250 million.
Through this expansion business opportunities elsewhere in Egypt will rise while multinational corporations can find growth in the Middle East and North African markets. The regional digital transformation will receive support through robust scalable infrastructure enabled by the new data center.
Competitive Landscape: What’s Next for Khazna?
The recent ownership transformations accompanied by new investments will position Khazna to strengthen its market position in regional and international data center industries. Khazna will benefit from strategic partnerships and expansion moves that generate better market positioning than its competitors to get a larger market share.
The increasing demand for data storage and processing creates optimistic conditions for Khazna to use its enhanced position combined with strategic initiatives to drive both innovation and superior services. The company’s expansion strategies will create benefits for clients while simultaneously developing the digital economy across the Middle East.
