The European Union is backing a €12.3 million ($14.52 million) loan to Jordan’s Aqaba Digital Hub (ADH) to expand its data centre capacity. Provided by the European Bank for Reconstruction and Development (EBRD) and guaranteed through the EFSD+, the financing will fund infrastructure upgrades and short-term liabilities. ADH operates Jordan’s largest Tier III, carrier-neutral data centre, offering cloud, cybersecurity, and broadband services. The total project cost stands at approximately $28.3 million. The deal forms part of a broader €135 million EU-Jordan partnership agreement signed by Minister Zeina Toukan and Commissioner Dubravka Šuica.
In-Depth:
The European Union (EU) is supporting a 12.3-million-euro ($14.52 million) senior loan to Aqaba Digital Hub (ADH), located in Aqaba, Jordan to finance the expansion of its data centre capacity.
The loan, backed by a first-loss guarantee from European Fund for Sustainable Development Plus (EFSD+), is provided by European Bank for Reconstruction and Development (EBRD).
EBRD had previously stated that the financing will support the expansion of ADH’s existing data centre infrastructure through capital expconcludeiture investments and settlement of short-term liabilities upon maturity.
ADH owns and operates the largest hyperscaler grade carrier-neutral, Tier III data centre in Jordan. It offers fibre broadband connectivity services including bulk internet to telecom operators, fibre-to-the-home/business (FTTx), and the hosting and construction of subsea cables as well as various cloud and cybersecurity services to Jordanian and regional enterprises.
EBRD declared the loan will finance data centre fitout capex and enable ADH to expand data centre capacity adjacent to subsea cable landing points, contributing to regional connectivity in line with the EU Global Gateway initiative.
The total project cost is estimated at approximately $28.3 million, according to EBRD.
The financing agreement formed part of a broader €135 million package signed between Jordan and the EU under the EU-Jordan Strategic and Comprehensive Partnership (SCP). The agreements were signed last week by Zeina Toukan, Jordan’s Minister of Planning and International Cooperation, and Dubravka Šuica, the European Commissioner for the Mediterranean.
(Writing by Majda Muhsen; Editing by Anoop Menon) (anoop.menon@lseg.com)
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