Mubadala Investment Co. has made a strategic investment in London-based data center developer Yondr Group, signaling the Abu Dhabi wealth fund’s continued interest in sectors poised for growth due to rising demand for cloud services and artificial intelligence. The $302 billion fund aims to support Yondr’s expansion, which currently has contracted and reserved capacity of 878 megawatts. While the specific terms of the deal were not disclosed, it highlights the growing appeal of data center operators to infrastructure funds flush with capital.

The data center sector has attracted over $20 billion in investments this year, underscoring the essential role these facilities play in powering the digital economy. According to Mubadala, global demand for data centers is projected to grow at an annual rate of 11% by 2032. This move aligns with the UAE and Saudi Arabia’s broader ambitions to become regional hubs for AI, sparking a race to develop the necessary infrastructure to support this technology.