“Ooredoo Group’s data center arm, Syntys, has acquired Q Data QFZ LLC, adding 12.5MW of hyperscale capacity in Qatar, including 5MW operational and 7.5MW under development, boosting total live IT load in the country to 26MW and positioning the platform for accelerated growth amid surging regional demand for AI and cloud infrastructure.”
In a move that underscores the rapid evolution of digital infrastructure in the Middle East, Syntys, the independent data center platform spun off from Ooredoo Group, has completed the acquisition of Q Data QFZ LLC. This deal involves the transfer of two Tier III-certified, carrier-neutral facilities located within the Qatar Free Zones, designed specifically for hyperscale operations. These facilities cater to major cloud and AI customers, reflecting the intensifying competition for high-capacity data centers in the Gulf region where demand continues to outpace supply.
The acquired assets include 5MW of currently live IT capacity, with an additional 7.5MW in advanced stages of development. This integration elevates Syntys’ overall live IT load in Qatar to 26MW, marking a significant expansion that aligns with broader ambitions to scale operations across the MENA region. Qatar’s strategic location as a connectivity hub, bolstered by its access to multiple subsea cable systems, makes these facilities particularly attractive for global hyperscalers seeking low-latency environments for AI workloads and cloud services.
Syntys, established through the carve-out of Ooredoo Group’s data center assets, now operates as a fully autonomous entity focused on AI-ready infrastructure. Prior to this acquisition, Syntys held a commanding 31% market share in Qatar’s data center sector, with 16.1MW operational and 4.5MW under construction. The addition of Q Data’s portfolio not only amplifies capacity but also enhances Syntys’ ability to offer sustainable, high-efficiency solutions tailored to the needs of enterprise clients and AI platform operators.
Strategic Implications for Regional Digital Growth
This acquisition arrives at a pivotal moment for the MENA data center market, projected to exceed 3.3GW by 2030—more than tripling current levels—driven by factors such as cloud adoption, hyperscaler expansions, and government policies promoting digital economies. In Qatar alone, the data center market is expected to grow from $264 million in 2022 to $418.5 million by 2028, at a compound annual growth rate (CAGR) of 7.98%. Syntys’ enhanced footprint positions it to capture a larger slice of this expansion, particularly as the region attracts international investments in AI and data sovereignty initiatives.
The deal also complements Ooredoo Group’s broader digital infrastructure strategy, which includes a sovereign AI cloud service rolled out last year. This platform provides localized access to advanced compute resources, enabling public and private sectors in Qatar to leverage GPU-accelerated environments for AI development without relying on overseas providers. By incorporating Q Data’s facilities, Syntys can better support these services, ensuring compliance with local data residency requirements while delivering the scalability demanded by global tech giants.
Beyond Qatar, Syntys maintains a diversified presence across MENA. In Kuwait, where the market is forecasted to expand from $177 million in 2023 to $340 million by 2029 at an 11.5% CAGR, Syntys commands a 20% share with 6MW of capacity, benefiting from direct subsea links to neighboring countries like Iran and Iraq. Tunisia, serving as a cost-efficient gateway to Europe and Africa, sees Syntys holding 25% market share with 2.2MW operational, supported by five active subsea cables and two more in development. Expansions into Oman (3.5MW under construction) and Iraq (1.3MW) further solidify Syntys’ regional network, creating interconnected ecosystems for cross-border data flows.
Financial and Operational Synergies
Financially, the acquisition integrates proven, revenue-generating assets into Syntys’ fold. The platform’s recurring revenues are estimated at $40-45 million annually, with adjusted EBITDA around $8.2 million, providing a stable base for growth. Backed by $550 million in secured financing and a planned $1 billion investment pipeline, Syntys aims to quadruple its total capacity to over 120MW by 2030. This capital-efficient approach, enhanced by strategic partnerships, minimizes dilution while maximizing returns for stakeholders.
Operationally, the Q Data facilities bring advanced features such as redundant power systems, advanced cooling technologies, and carrier-neutral connectivity, ensuring uptime exceeding 99.982%—critical for mission-critical AI and cloud applications. The integration process is expected to be seamless, leveraging Syntys’ expertise in managing hyperscale environments. This move also addresses capacity constraints in the Gulf, where available IT load for AI training and inference has been strained by explosive demand from sectors like finance, healthcare, and energy.
Key Capacity Breakdown Across Syntys Operations
| Country | Operational IT Capacity (MW) | Under Construction/Development (MW) | Market Share (%) | Projected Market Growth (CAGR to 2028/2029) |
|---|---|---|---|---|
| Qatar | 26 (post-acquisition) | 7.5 + 4.5 | 31 | 7.98% |
| Kuwait | 6 | – | 20 | 11.5% |
| Tunisia | 2.2 | – | 25 | 7.05% |
| Oman | – | 3.5 | Emerging | N/A |
| Iraq | 1.3 | – | Emerging | N/A |
| Total | 35.5 | 15.5 | N/A | N/A |
This table illustrates Syntys’ current and near-term capabilities, highlighting the immediate boost from the Q Data deal in Qatar. The platform’s focus on sustainability—incorporating renewable energy sources and efficient PUE (Power Usage Effectiveness) ratios below 1.4—aligns with global ESG standards, appealing to U.S.-based investors increasingly prioritizing green infrastructure.
Broader Market Context and Competitive Edge
The Gulf’s data center boom is fueled by hyperscaler giants expanding footprints to support AI proliferation. Qatar’s national digital agenda emphasizes sovereign capabilities, making acquisitions like this essential for maintaining technological independence. Syntys’ carrier-neutral model allows seamless integration with multiple providers, reducing vendor lock-in and enhancing flexibility for clients.
In comparison to regional peers, Syntys stands out with its integrated approach, combining data centers with Ooredoo Group’s subsea and terrestrial networks. This creates end-to-end solutions for low-latency AI compute, positioning the company as a preferred partner for U.S. tech firms eyeing MENA expansion. The acquisition mitigates risks associated with supply chain disruptions in global data center builds, ensuring faster time-to-market for new capacities.
As AI workloads surge—expected to drive 40% of new data center demand in the region—Syntys’ expanded Qatar operations provide a robust foundation. The facilities’ location in free zones offers tax incentives and streamlined regulations, further incentivizing foreign direct investment. For American businesses, this translates to reliable, secure infrastructure for offshoring AI training without compromising on performance or compliance.
Future Outlook and Expansion Drivers
Looking ahead, Syntys’ roadmap includes leveraging partnerships to accelerate rollouts. Collaborations with global leaders in data center management enable access to best practices in AI-optimized design, such as liquid cooling for high-density racks. The platform’s GPU-as-a-Service offerings, powered by advanced hardware, cater to emerging needs in generative AI and machine learning.
Demand drivers remain strong: MENA’s cloud market is set to grow at 20% CAGR through 2030, with AI investments projected to reach $300 billion regionally. Qatar’s role as a data corridor, connecting Europe, Asia, and Africa, amplifies Syntys’ value proposition. This acquisition not only cements leadership in Qatar but also sets the stage for similar opportunistic deals across MENA, driving long-term shareholder value through diversified, high-margin digital assets.
Disclaimer: This news report is for informational purposes only and does not constitute financial advice, investment tips, or endorsements of any sources.