Orange and Morrison are launching a 50-50 joint venture in France to build 400 megawatts of data center capacity. Backed by a €3 billion investment, the move aims to capture rising demand for AI and cloud services. The transaction is expected to finalize by early 2027, pending necessary regulatory approvals.
Detailed Coverage
French telecommunications major Orange and infrastructure investor Morrison have announced a strategic partnership to develop a new data center platform in France. The 50-50 joint venture seeks to significantly scale up data infrastructure to support the increasing requirements of artificial intelligence and cloud computing providers.
Scaling Capacity With €3 Billion Investment
The joint venture plans to establish a total capacity of 400 megawatts. This target marks a major shift for Orange, representing a nearly tenfold increase over its currently managed data center footprint. The companies have outlined a €3 billion, or approximately $3.41 billion, investment plan to finance the construction and development of these new facilities. Funding for the expansion is expected to come from a mix of equity contributions from Morrison and debt financing.
Asset Consolidation and Transaction Timeline
To jumpstart the venture, Orange will contribute five of its existing data center facilities located across France into the new entity. Morrison’s role centers on providing the capital required for the planned expansion. Both companies are working toward finalizing the legal structure and transaction details by the end of 2026. If the necessary regulatory clearances are received as planned, the venture expects to begin full operations in the first quarter of 2027.
For investors, the move highlights a shift toward infrastructure-heavy assets within the telecommunications sector. By separating data center operations into a dedicated joint venture, Orange aims to leverage outside expertise and capital to fund intensive growth projects without fully straining its own balance sheet.
The next major monitorables for the project include the receipt of regulatory approvals and the specific timeline for the construction of the new capacity. As the artificial intelligence sector continues to drive hardware and infrastructure needs, the ability of the joint venture to secure large-scale clients for its 400-megawatt capacity will be a key factor in determining the long-term financial success of this capital-intensive expansion.