EQT seeks joint AI and data centre deals with Saudi and UAE sovereign investors

EQT, Europe's largest private market investment firm, is engaging in discussions with sovereign investors from the UAE and Saudi Arabia to explore joint investments in artificial intelligence and infrastructure, according to its global chair Jean Eric Salata. With $400 billion in assets, EQT is eager to deploy capital in the region, which houses some of the world's biggest sovereign wealth funds.

The company, which plans to expand its AI infrastructure footprint through its portfolio firm EdgeConneX, is particularly interested in data centres and infrastructure projects.

Saudi Arabia and the UAE are at the forefront of AI development in the region, with both nations announcing multi-billion dollar AI initiatives. The UAE is developing a $20 billion data centre investment and a five-gigawatt AI campus in Abu Dhabi, while Saudi Arabia has set up a $100 billion Project Transcendence to bolster domestic AI and data infrastructure. The three Gulf states have collectively announced AI investment plans worth $120 billion, or 5% of their GDP.

EQT's interest in the region is driven by the capital-intensive nature of AI development, which includes the need for chips, energy, and data centres. Salata emphasized that this creates a significant opportunity for global investors with a long-term investment horizon. Currently, EQT is in talks with potential partners in the UAE and other regions, and the firm has established a presence in Abu Dhabi to strengthen its ties with sovereign wealth funds and other institutional partners in the region.