Core42 Secures $550M From HSBC for Global AI Cloud Expansion

Talal Al Kaissi, Core42 Interim CEO

Core42, part of Abu Dhabi-based G42, has secured $550 million in structured trade finance facilities from HSBC to accelerate the rollout of AI cloud and compute infrastructure across the US and Europe.

The financing package was divided into two facilities worth $240 million and $310 million, finalised in February and May 2026 respectively. The company said the capital will support large-scale AI cloud deployments tied to long-term demand from enterprise clients, governments, and hyperscale customers.

The deal highlights a broader global shift toward sovereign AI infrastructure as countries and corporations seek locally governed cloud environments capable of supporting generative AI workloads. The UAE, through entities such as G42, ADGM, and Hub71, has increasingly positioned itself as a regional hub for AI infrastructure, cloud services, and advanced computing investments.

What Makes This Financing Structure Significant?

Core42 said the facilities are non-equity dilutive, enabling the company to raise capital without issuing additional shares or reducing shareholder ownership.

This financing structure is becoming increasingly relevant in the AI infrastructure sector, where companies require billions of dollars in upfront capital to fund:

• High-performance AI compute clusters
• Hyperscale cloud infrastructure
• GPU-intensive data centres
• Sovereign AI deployments
• Cross-border cloud expansion

Unlike traditional equity financing, structured trade finance provides infrastructure operators with access to growth capital while preserving ownership and long-term balance sheet flexibility.

Core42 Financing Breakdown

Facility	Value	Finalisation Date	Purpose
Facility 1	$240 million	February 2026	AI cloud and compute infrastructure expansion
Facility 2	$310 million	May 2026	International deployment and hyperscale capacity growth
Total Financing	$550 million	2026	US and European AI infrastructure rollout

Why Are AI Infrastructure Investments Accelerating Globally?

The announcement comes amid surging global investment into AI infrastructure as generative AI adoption accelerates across enterprise, government, and industrial sectors.

According to multiple industry forecasts, the global AI infrastructure market is expected to exceed $200 billion by 2030, driven by demand for:

• Large language model (LLM) training
• AI inference workloads
• Sovereign cloud environments
• Enterprise AI adoption
• Regulatory-compliant regional data hosting

This trend has intensified competition among AI infrastructure providers, hyperscalers, and governments seeking strategic control over compute capacity and AI supply chains.

In the Gulf region, projects linked to NEOM, Abu Dhabi’s AI ecosystem, and sovereign technology initiatives are increasingly shaping regional investment flows into data centres, cloud platforms, and advanced semiconductor infrastructure.

How Is Core42 Expanding Across Europe and the US?

Core42 said its European operations are anchored by a regional headquarters in Dublin, while deployments are already underway in Italy and France.

The company’s expansion strategy aligns with growing demand for locally governed AI infrastructure in Europe, where regulatory frameworks increasingly prioritise:

• Data sovereignty
• AI governance
• Compliance transparency
• Secure cloud environments
• Domestic compute availability

By establishing infrastructure across multiple jurisdictions, Core42 aims to position itself as a long-term provider of compliant AI cloud services for enterprise and government customers.

“The trade finance facilities represent a defining moment for Core42 and for the broader AI infrastructure sector,” said Neha Gupta.

“The provision of the trade facilities by HSBC will strengthen our ability to deploy capacity at speed across the US and Europe while maintaining financial discipline and a long-term growth framework,” Gupta added.

Roopal Jobanputra said the financing structure was designed to support “long-term deployment at scale” while maintaining governance and regulatory clarity across multiple jurisdictions.

Meanwhile, Shaikha AlMarri said the facilities were structured to support both current deployments and future funding requirements tied to Core42’s AI infrastructure roadmap.

What Does This Mean for the UAE’s AI Ambitions?

The financing underscores Abu Dhabi’s growing role in the global AI economy as the UAE accelerates investment into sovereign AI capabilities, cloud infrastructure, and advanced digital ecosystems.

Backed by entities such as G42 and innovation ecosystems including Hub71 and ADGM, the UAE continues to position itself as a strategic bridge between Western, European, and emerging AI markets.

The Core42 financing deal also signals how regional technology champions are increasingly leveraging structured finance models to compete in the capital-intensive AI infrastructure race.

 

 

 

 

FAQ

1. What is Core42?
Core42 is an Abu Dhabi-based AI cloud and infrastructure company operating under G42. The company focuses on AI compute, sovereign cloud infrastructure, and hyperscale AI deployments.

2. How much financing did Core42 secure from HSBC?
Core42 secured $550 million in structured trade finance facilities from HSBC in 2026 to support AI infrastructure expansion across the US and Europe.

3. What will the $550 million funding be used for?
The financing will support AI cloud infrastructure, hyperscale compute deployments, data centre expansion, and enterprise AI services tied to long-term contracted demand.

4. Why is sovereign AI infrastructure becoming important?
Governments and enterprises increasingly require locally governed AI infrastructure to meet regulatory, data sovereignty, and cybersecurity requirements while supporting generative AI adoption.

5. How does this deal support the UAE’s AI strategy?
The deal strengthens Abu Dhabi’s position as a global AI infrastructure hub and aligns with broader UAE initiatives led by entities such as G42, Hub71, and ADGM to expand AI and cloud capabilities globally.