Mubadala Investment Company, the sovereign wealth fund based in Abu Dhabi, is expanding its digital infrastructure portfolio with a strategic investment in Yondr Group, a prominent data center developer headquartered in London. This move aligns with Mubadala’s strategy to capitalize on the growing demand for cloud services and artificial intelligence (AI) technologies.
The $302 billion wealth fund’s latest investment aims to bolster Yondr’s growth, supporting the company’s ambitious expansion plans.
Yondr, known for its global presence as a hyperscale data center developer, currently has a contracted and reserved capacity of 878 megawatts, with 58 megawatts of that already operational.
Mubadala did not disclose additional details regarding the investment terms.
In a statement, Mubadala highlighted that this investment will aid Yondr in executing its growth strategy, designed to meet the increasing global demand for hyperscale data centers. According to forecasts, global data center demand is projected to expand at an 11 percent compound annual growth rate by 2032, driven by advancements in AI, 5G, and the Internet of Things (IoT). Mounir Barakat, Senior Executive Director of Digital Infrastructure at Mubadala Investment Company, remarked, “We are witnessing a strong growth in demand for hyperscale data centers in response to the rising data demands from AI adoption, 5G, and IoT, and Yondr will play a key part in providing solutions for some of the world’s fastest-growing corporations. We look forward to working closely with Yondr and our investment partners to develop world-class solutions that create long-term value for their customers and stakeholders.”
Chester Reid, Chief Financial Officer of Yondr, noted that Mubadala’s partnership positions the company to accelerate its growth trajectory and continue delivering sustainable data center solutions to meet global demand.
This investment is a continuation of Mubadala’s aggressive expansion in the digital infrastructure sector. In 2023, Mubadala invested in Aligned Data Centres, a leading provider of colocation and build-to-suit solutions across the Americas. The previous year, Mubadala also backed Princeton Digital Group, a key player in the Asian data center market, and has invested in major fiber network providers like CityFibre and GlobalConnect.
“Mubadala’s investment aligns with our commitment to responsible investing.
Mubadala, the second-largest state fund in Abu Dhabi after the Abu Dhabi Investment Authority (ADIA), has been enhancing its global investment strategy across North America, Asia, and Europe. In 2023, Mubadala’s assets under management grew by 9.5 percent to Dh1.11 trillion. However, the fund reported a 6.6 percent decline in proceeds, totaling Dh99 billion, attributed to divestments and capital recycling into priority investment areas. In 2022, the fund reported proceeds of Dh106 billion.
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