UAE-based telecommunications company e& announced on Wednesday that it is exiting Khazna Data Centres, its joint venture with AI and cloud firm Group 42 (G42). e& will sell its 40% stake in the data center company to G42 for $2.2 billion.
In a statement to the Abu Dhabi Securities Exchange, e& revealed that the sale would generate a capital profit of $1.4 billion (before taxes and royalties), which will be used to reduce the company’s debt.
The decision to exit Khazna Data Centres is part of e&’s broader “asset monetisation” strategy, which aims to allow the company to focus on its core businesses. E& and G42 merged their data center businesses in 2021 to create Khazna, with the deal finalised a year later. The merger made Khazna the largest data center provider in the UAE at the time, with around 300MW of capacity. Under the agreement, G42 took a 60% stake, while e& held the remaining 40%.
Despite the sale, e& confirmed that it will continue to work with Khazna as both a strategic partner and a major tenant. The transaction is expected to be completed by the end of the first quarter of 2025. Following the completion of the deal, MGX and Silver Lake will become minority shareholders in Khazna, according to a separate statement from G42.
