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Etisalat, G42 ink agreement to create largest data centre provider in UAE

Etisalat, G42 ink agreement to create largest data centre provider in UAE
Etisalat will own 40% of the joint venture
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Abu Dhabi – Mubasher: Emirates Telecommunications Group (Etisalat) has inked a binding agreement with Group42 (G42) to combine their data centres to create the largest data centre provider in the UAE.

Etisalat will own 40% of the joint venture, in which twelve data centres will combine to operate under Khazna Data Centres, while G42 will hold 60%, according to a press release on Wednesday.

The new joint venture is planned to offer more than 300 MW of capacity to promote the UAE’s digital economy.

The accounting treatment for the joint venture will be based on the equity method by consolidating Etisalat's share of the new venture's net profit. 

Etisalat Group will see an immaterial impact of the data centres' deconsolidation on consolidated revenues; however, it will be positive at net profits.

Subject to customary closing conditions, including regulatory approvals, the transaction aims to foster the UAE's position as a preferred destination for global technology companies and contributes to developing the digital ecosystem.