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

French telecommunications operator Orange and infrastructure investor Morrison have entered into an exclusivity agreement to create a jointly controlled data center company in France. The 50/50 joint venture aims to significantly scale Orange's existing data center portfolio to meet surging demand driven by artificial intelligence and cloud computing.

Partnership Details

The new platform will be supported by an investment program of €3 billion, according to a company announcement on Monday. The goal is to develop a target capacity of 400 megawatts, a nearly tenfold increase from Orange's current capacity.

Under the terms of the agreement:

• Orange will contribute five major data centers located across four French campuses: Chevilly-Larue, Aubervilliers, Chartres, and Val-de-Reuil.
• Morrison will commit equity through its global value-add strategy and provide its expertise in infrastructure and data center investment.
• The investment will be funded through Orange's contributed assets, Morrison's equity, and debt financing.

Strategic Rationale

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The partnership is a strategic move to address the growing need for robust digital infrastructure in Europe. "We are absolutely convinced that France will need sovereign, trusted digital infrastructure if it is to rise to the challenge of surging demand driven by cloud and artificial intelligence," said Christel Heydemann, CEO of the Orange group.

William Smales, Chief Investment Officer at Morrison, added that Europe’s digital future requires significant investment in infrastructure capable of supporting data-intensive applications. The new platform will serve as a foundation for Orange Business’s cloud and AI solutions.

Operational Structure and Timeline

Once established, Orange Business is set to be the exclusive partner for distributing colocation and hosting services to enterprise and public-sector clients. Orange will continue to host its own platforms and services within the joint venture's data centers, maintaining operational control over its dedicated areas. The joint venture is expected to be accounted for under the equity method upon closing.

The transaction signing is anticipated by the end of 2026, pending consultation with employee representative bodies and receipt of necessary regulatory approvals. The companies expect the deal to close in the first quarter of 2027.