Phoenix Group AI data center partnership with DC Max was announced on May 13, 2026, to develop an 18MW facility in Lyon, France. Abu Dhabi-based Phoenix Group announced this strategic partnership to develop its first European AI data center as part of the launch of Phoenix’s European Data Center Platform, a scalable framework targeting over 1GW of combined artificial intelligence and high-performance computing capacity across Europe and the Gulf Cooperation Council region.
Phoenix has already acquired land for the Lyon site, which includes secured permits, grid connection, and available power. Construction is scheduled to begin in July 2026, with delivery targeted between Q4 2027 and Q1 2028. The facility will support enterprises and hyperscalers seeking AI compute capacity in a market where demand significantly outpaces supply.
Market Demand and Regional Strategy
Demand for AI compute in Europe is rapidly outpacing available supply, with enterprises reserving capacity years in advance. Traditional development timelines of 36 to 48 months prevent most operators from responding at the speed the market requires. Lyon, France’s second-largest city, offers a strong industrial base, robust electrical infrastructure, and lower land costs compared to Paris.
Munaf Ali, co-founder and group chief executive officer of Phoenix Group, stated: “What we are announcing today is not an incremental step; it is a genuine inflection point for Phoenix and for what an Emirati company can achieve on the global stage. We are establishing a presence at the heart of European AI infrastructure, bringing the conviction and capital to build something that will compound in value for years to come.”
Phoenix Group AI data center Platform Model
The DC Max partnership is structured as a repeatable development model rather than a single transaction. DC Max brings expertise in site origination, permitting, and grid access, while Phoenix contributes capital and operational scale. The combined pipeline includes over 1GW of opportunities valued at approximately $8 billion. DC Max’s established relationships with grid operators and permitting authorities, paired with Phoenix’s ability to design, procure, and build infrastructure rapidly, enable the partnership to move faster than typical European development timelines.
This platform operates alongside Phoenix’s existing 550MW of deployed capacity across the UAE, Oman, North America, and Ethiopia. The company was founded in 2017 and built its foundation on operational discipline and energy expertise through digital infrastructure operations.
Partnership Capabilities and Execution
Romain Fremont, CEO of DC Max, said: “Phoenix brings exactly the kind of operational scale and capital discipline that French data center development has been waiting for. We have spent years identifying and securing the best power positions in this market, in Lyon and across France, and this partnership means we can now move on that pipeline at a pace and scale that would not have been possible independently.”
The partnership provides Phoenix with preferential access to DC Max’s development pipeline, accelerating the company’s goal toward building an excess of 1GW global AI and HPC platform across Europe and the GCC. DC Max operates a portfolio of approximately 2GW of capacity and is backed by investors with over 6 billion euros in combined investment experience. Further announcements are expected throughout 2026.
