Abu Dhabi’s Phoenix Group partners with DC Max for $8 billion European AI data center expansion

Technology

Abu Dhabi’s Phoenix Group partners with DC Max for $8 billion European AI data center expansion

Phoenix Group has announced a strategic partnership with French data center developer DC Max to launch its first European AI data center project in Lyon, France, marking a major step in the company’s global AI infrastructure expansion strategy.

The Abu Dhabi-headquartered company said the partnership will support the development of an 18MW AI-ready facility in Lyon as part of a broader European Data Center Platform targeting more than 1GW of combined AI and high-performance computing (HPC) capacity across Europe and the GCC.

According to Phoenix Group, the partnership provides preferential access to DC Max’s development pipeline, which exceeds 1GW in opportunities and is estimated to be worth around $8 billion.

The company confirmed it has already acquired land for the Lyon project, with permits secured, grid connectivity established, and power availability confirmed. Construction is scheduled to begin in July 2026, with delivery expected between the fourth quarter of 2027 and the first quarter of 2028.

IHC portfolio company Phoenix Group said the European expansion aligns with the UAE’s broader ambitions to become a leading player in artificial intelligence and advanced digital infrastructure.

Munaf Ali, Co-Founder and Group Chief Executive Officer of Phoenix Group, described the move as a transformative milestone for both the company and Emirati businesses expanding internationally.

“What we are announcing today is not an incremental step; it is a genuine inflection point for Phoenix and for what an Emirati company can achieve on the global stage,” he said.

He added that the company aims to establish a significant presence within Europe’s rapidly expanding AI infrastructure sector while contributing to the UAE’s long-term AI ambitions.

Phoenix Group said demand for AI computing capacity across Europe is currently exceeding supply, with enterprises and hyperscale technology companies reserving infrastructure capacity years in advance.

The company identified France as one of the most attractive European markets for AI infrastructure due to its strong industrial base, robust electrical infrastructure, and comparatively lower land costs outside Paris. Lyon, France’s second-largest city, was selected as the launch site because of its strategic advantages and existing infrastructure readiness.

Phoenix said DC Max’s expertise in permitting, site origination, and grid access, combined with Phoenix’s operational and development capabilities, would allow projects to be delivered faster than traditional European development timelines, which often extend between 36 and 48 months.

The partnership has been structured as a long-term infrastructure platform rather than a single project, enabling both companies to scale AI-ready data center developments across multiple European markets.

The new platform complements Phoenix Group’s existing global portfolio, which currently includes 550MW of deployed digital infrastructure capacity across the UAE, Oman, North America, and Ethiopia.

The company said the expansion reinforces its ambition to become a leading global operator in digital infrastructure and AI-ready computing capacity.