Abu Dhabi’s Phoenix Group launches 18MW AI Data Center project in France

Phoenix Group PLC (ADX: PHX), an IHC portfolio company and global digital infrastructure operator headquartered in Abu Dhabi, has announced a strategic partnership with DC Max to develop its first European AI data center, an 18MW facility in Lyon. The move marks Phoenix’s official entry into the European AI infrastructure market and reflects the company’s broader expansion strategy in digital infrastructure and high-performance computing.

The project will serve as the inaugural deployment of Phoenix’s European Data Center Platform, a scalable framework targeting more than 1GW of combined AI and high-performance computing (HPC) capacity across Europe and the GCC. Through the partnership, Phoenix will gain preferential access to DC Max’s development pipeline, which is valued at an estimated $8 billion, accelerating the company’s ambition to build a large-scale global AI infrastructure platform.

Phoenix confirmed that it has already secured the land for the Lyon facility, with permits, grid connection, and available power already in place. Construction is expected to begin in July 2026, with delivery targeted between the fourth quarter of 2027 and the first quarter of 2028.

The company views the expansion as a direct extension of the UAE’s national AI ambitions, bringing Abu Dhabi-based expertise and capital into the European market while positioning regional operators as active contributors to the global AI economy.

Munaf Ali, Co-Founder and Group CEO of Phoenix Group, said:“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. We are establishing a presence at the heart of European AI infrastructure, bringing the conviction and capital to build something that will compound in value for years to come. The 1GW ambition is not a ceiling; it is a starting point”.

He added: “I am proud that it is a company headquartered in Abu Dhabi that is leading this charge, and I believe this is precisely the kind of bold, global move that our shareholders, our partners, and the UAE’s own AI ambitions deserve”.

The partnership comes at a time when demand for AI compute capacity across Europe is rapidly outpacing supply, with hyperscalers and enterprises reserving capacity years in advance. Lyon has emerged as a strategic location due to its strong industrial base, robust electrical infrastructure, and comparatively lower land costs than Paris.

Romain Fremont, CEO of DC Max, said: “Phoenix brings exactly the kind of operational scale and capital discipline that French data center development has been waiting for. We have spent years identifying and securing the best power positions in this market, and this partnership gives us the ability to execute at a pace and scale that would not have been possible independently”.