Orange and Morrison Announce €3 Billion Data Center Joint Venture in France

French telecommunications firm Orange (EPA:ORAN) and infrastructure investor Morrison announced on Monday a plan to form a 50-50 joint venture to expand data center capacity in France. The partnership is backed by a €3 billion ($3.41 billion) investment program aimed at meeting surging demand from artificial intelligence and cloud computing.

Venture Details and Funding

The joint venture will target the development of 400 megawatts of capacity, a nearly tenfold increase from Orange's current data center footprint. According to the announcement, the expansion will be financed through a combination of Orange assets, equity funding from Morrison, and debt financing.

Under the terms of the agreement, Orange will contribute five of its existing data centers in France to the new entity. Morrison will provide the equity capital necessary to fund the platform's future growth and development.

Strategic Rationale

Ad

The move positions the partners to capitalize on the explosive growth in demand for data processing power, driven largely by the rapid adoption of AI technologies and the continued expansion of cloud services. By significantly scaling its infrastructure, the venture aims to become a key player in the competitive European data center market.

Transaction Timeline

The companies stated they expect to sign the final transaction documents by the end of 2026. The deal is anticipated to close in the first quarter of 2027, subject to customary regulatory approvals.