DigitalBridge Group, a company administering a portfolio of $69 billion worth of digital infrastructure assets on behalf of its limited partners and shareholders, has announced a new partnership with the Public Investment Fund (PIF), one of the world’s largest sovereign wealth funds from Saudi Arabia, for the development of data centers in Saudi Arabia and the Gulf Cooperation Council (GCC) region.
This investment is anticipated to support the growth of the digital economy in Saudi Arabia and the neighboring region by leveraging DigitalBridge’s expertise in investing, constructing, and operating digital infrastructure to the highest global standards.
Managed by DigitalBridge, the partnership will initially concentrate on investments in the data center industry. In the future, it also intends to investigate other segments of digital infrastructure, including macro towers, fiber, small cell, and edge infrastructure. As part of its broader strategy, the PIF seeks to align Saudi Arabia’s digital infrastructure with international standards by partnering with DigitalBridge.
One of the primary goals of this investment is to facilitate the transmission of knowledge and the localization of cutting-edge technologies. The partnership seeks to develop and operate hyperscale data centers and database servers in Saudi Arabia and the GCC region in accordance with industry best practices. The establishment of these cutting-edge data centers will increase the efficiency with which large regional and international corporations conduct business in the region.
Marc Ganzi, CEO of DigitalBridge, was enthusiastic about the partnership, stating, “As a global leader in digital infrastructure, we are delighted to collaborate with PIF to facilitate the expansion of digital infrastructure in Saudi Arabia and across the GCC. We anticipate leveraging our capabilities and expertise to capitalize on the long-term opportunities in this vital region by capitalizing on the significant development potential we see in the industries in which we specialize.”
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Investing in 13 Strategic Saudi Arabian and International Sectors
The Public Investment Fund (PIF) is one of the world’s largest and most influential sovereign wealth funds. Since its board of directors was reconstituted and supervision was transferred to the Council of Economic and Development Affairs in 2015, it has played a crucial role in Saudi Arabia’s economic diversification and transformation. Crown Prince Mohammad bin Salman bin Abdulaziz, who also functions as Prime Minister and Chairman of the Council of Economic and Development Affairs, presides over the PIF’s Board.
In an effort to shape the future of the global economy, the PIF has established 72 companies since 2017 that would directly and indirectly generate over 500,000 employment by the end of 2021. The fund intends to create a diversified portfolio by investing in thirteen strategic Saudi Arabian and international sectors. As part of its programs to realize Vision 2030, the PIF Program 2021-2025 aims to increase local content by establishing partnerships with the private sector and injecting at least 150 billion Saudi Arabian Riyals annually into the local economy. In addition, the PIF is committed to transferring technologies and localizing knowledge in order to foster a thriving and sustainable domestic economy.
DigitalBridge Group, which is traded on the New York Stock Exchange under the symbol DBRG, is a global provider of digital infrastructure with over 25 years of experience investing and operating businesses across the digital ecosystem. The company administers a portfolio of $69 billion worth of digital infrastructure assets on behalf of its limited partners and shareholders. DigitalBridge has major facilities in New York, Los Angeles, London, Luxembourg, and Singapore in addition to its headquarters in Boca Raton.
The partnership between DigitalBridge and the PIF would be an important step in the development of digital infrastructure in Saudi Arabia and the GCC region. By combining their expertise and resources, both parties intend to promote the development of the digital economy, facilitate the transmission of knowledge, and enable large corporations to conduct business more efficiently in this swiftly evolving industry.
