Orange and Morrison, a global infrastructure investor, have announced plans to create a data centre joint venture to strengthen Europe’s digital sovereignty.

The partnership will utilise Orange’s existing infrastructure, with the new platform targeting a capacity of 400MW. It will be supported by a €3 billion (US$3.14 billion) investment and represent a significant step to creating a sovereign offering that’s capable of meeting rapidly growing cloud and AI-related demand.

Both companies said the joint venture will be 50/50 and the jointly controlled data centre company will be located in France, supporting the development and enhancement of Orange’s existing French data centre portfolio.

“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,” commented Christel Heydemann, CEO of Orange Group. “This contemplated joint venture with Morrison, will allow us to unlock the value of our existing assets and strengthening our position in data centres. Together with a partner recognised for its expertise and investment capacity, we will accelerate the deployment of the capacity that the market needs.”

The joint venture is also aligned with Orange’s “Trust the Future” strategy, which aims to make trust a competitive advantage and accelerate the company’s growth in trusted digital solutions for businesses.

As part of the deal, Orange is expected to contribute five major data centres across four campuses in France, including Chevilly-Larue, Aubervilliers, Chartres and Val-de-Reuil – bolstering the offerings with its operational expertise and commercial reach. Morrison is expected to contribute its strong track record in infrastructure and data centre investment, committing equity through its global value-add strategy to support the platform’s growth.

The partnership would also enable both shareholders to combine their industrial and commercial expertise to accelerate the rollout of new capacity and meet the growing market demand.

Designed to be a strategic value-creating investment supporting sovereign AI and cloud, the platform is expected to contribute to positioning France as a leading location for digital infrastructure, offering tailored solutions to leaders that operate within the country. This comes during a time where global demand for hosting capacity is growing at unprecedented rates, on account of AI, cloud computing and large-scale data processing continuing to rise.

The platform would also benefit from some of the most decarbonised electricity in Europe, the companies said and would aim to achieve the highest levels of energy efficiency and sustainability. Orange Business would be expected to be the exclusive partner for the distribution of its colocation and hosting offers for large enterprises, SMEs and public sector entities.

“Europe’s digital future will require significant new investment in trusted infrastructure capable of supporting the growth of cloud services, AI and data-intensive applications. Together with Orange, we are contemplating the creation of a platform that combines strategic infrastructure assets, operational expertise and long-term capital to meet that challenge,” said William Smales, chief investment officer at Morrison. “We believe France is exceptionally well positioned to play a leading role in Europe’s digital economy, and this partnership represents an important step towards building the sovereign infrastructure needed to support future growth and competitiveness.”

The transaction is expected to be signed by the end of 2026, subject in particular to consultation with the relevant employee representative bodies. Closing is expected in the first quarter of 2027.

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