EQT in Talks with UAE and Saudi Arabia for AI and Data Centre Joint Ventures

EQT, Europe's largest private markets investment firm, is reportedly in discussions with sovereign investors from the UAE and Saudi Arabia to explore collaborative ventures in artificial intelligence (AI) and infrastructure within the region's two leading economies. Jean Eric Salata, EQT's global chair, revealed that the firm, which manages $400 billion in assets and has a long history of raising funds from Gulf investors, is eager to deploy capital in the area, home to some of the world's most significant sovereign wealth funds.

"Here [in the UAE] I would say, and we've also been talking to Saudis as well, looking at opportunities there. Those are the two big areas that we're working on right now," Salata stated regarding ongoing AI co-investment discussions with sovereign investors. He added, "We're most excited about, which I think aligns with the strategic goals of the UAE, is the whole infrastructure, particularly data infrastructure and data centres, where we have globally one of the largest footprints."

The Stockholm-based private equity firm intends to expand its AI infrastructure presence in the Gulf through its subsidiary EdgeConneX, which currently operates over 106 data centres across 25 countries. EQT, managing over $100 billion in digital and energy assets globally, is the latest major international investor targeting the burgeoning AI and digital infrastructure sector in the Middle East. AI has become a cornerstone of the economic diversification strategies of oil-rich Gulf nations, which have already unveiled substantial AI infrastructure projects.

The UAE is spearheading initiatives with a planned five-gigawatt UAE-US AI campus in Abu Dhabi, featuring Stargate UAE—a significant 1GW computing cluster supported by a $20 billion data centre investment. Tech investors Khazna and G42 are collaborating on these projects with global entities like OpenAI, Oracle, Nvidia, and Cisco, as well as investors such as SoftBank. Saudi Arabia, the largest Arab economy, has launched Project Transcendence, a $100 billion initiative to enhance its domestic AI and data infrastructure. The kingdom's Public Investment Fund, with $1 trillion in assets, has also established Humain to develop national cloud infrastructure.

Qatar's sovereign wealth fund, the Qatar Investment Authority, has introduced Qai, a $20 billion AI infrastructure partnership aimed at expanding domestic GPU and data centre capabilities. Collectively, the three Gulf states have announced AI investment plans totaling $120 billion since last year, representing over 5% of their gross domestic product, according to IMF estimates. The substantial capital required for AI development and data centres presents a significant opportunity for global investors like EQT.

Blackstone Group, with $1.3 trillion in assets, has already secured a $3 billion deal with Saudi Arabia's Humain, while Microsoft has committed over $10 billion to data centres and related infrastructure across the UAE, Saudi Arabia, Qatar, and Kuwait through 2030. "There are many conversations that are ongoing right now with potential partners, both here [in the UAE] and elsewhere in the region," Salata commented. "This is a sector that is capital constrained and is really, if you think about the AI build-out, the core, the key constraint in building the infrastructure is actually physical. It's the physical constraint around chips, energy, and data centres."

Salata highlighted the strong investment case for building power generation capacity and rolling out data infrastructure due to the high demand for compute power. "I think that's where a lot of investment opportunity is right now for providers of long-term capital that can invest on a 15-year investment horizon," he noted.

EQT established its first Middle East office in Abu Dhabi's ADGM in September, joining other major investors and asset managers. This Abu Dhabi base facilitates expansion in the region and closer collaboration with sovereign funds, family offices, and institutional partners. EQT is actively working with the Abu Dhabi Investment Authority (ADIA), with Salata expressing enthusiasm for deepening this relationship. "They are one of our most important partners, and we're very excited to be working with them in, I would say, ever-increasing dimensions. We not only manage investments for Adia in our funds, but we also do a lot of co-investing together," he explained.

ADIA has been a key co-underwriter for some of EQT's largest European private company acquisitions. In June, ADIA, alongside Abu Dhabi's Mubadala Development Company ($385 billion sovereign investment arm), participated in EQT's £9.5 billion bid for the UK's Intertek Group. EQT has also engaged in several co-investment deals with Mubadala over the years, including the 2022 acquisition of Envirotainer and Mubadala's $600 million stake in Nord Anglia Education in 2025. Salata described Mubadala as "a significant partner of ours all over the world".

Salata emphasized that establishing the Abu Dhabi office was crucial for strengthening ties within the region, where EQT maintains active relationships with numerous other sovereign wealth funds. "The plan is to continue to develop those relationships regionally and use this office as a base to access them on a more regular basis," he stated. With forty EQT portfolio companies already operating in the Gulf, the firm anticipates increased investment from regional sovereign investors into these companies, facilitated by its local presence.

"The logical place for us to start is with our existing portfolio companies," Salata said. "We really want to try and figure out how we can become more deeply involved in the investment ecosystem here." EQT plans to introduce more of its portfolio companies to the Gulf market, with Salata projecting a two to three-fold increase in such ventures over the next five to ten years. The firm is targeting sectors that align with the region's long-term trends, including infrastructure, education, and healthcare, as well as technology and energy, where government policy is supportive.