A new partnership between UAE-based Hodler Investments and China's GCL Energy Investment aims to utilize wasted energy resources, such as flared gas, to power artificial intelligence (AI) data centers in Ethiopia.
This initiative aligns with Ethiopia's ambition to become a leader in the digital economy, with its data center market projected to grow significantly in the coming years.
Hodler Investments, a Dubai-based firm specializing in energy, AI, and digital asset mining, will collaborate with GCL Energy Investment, a subsidiary of the leading Chinese energy provider Golden Concord Group, to build the energy infrastructure.
The project will leverage flared gas and other wasted energy sources to power data centers specializing in AI and blockchain applications. The partnership is part of Ethiopia's broader Digital Transformation Strategy 2025, which aims to enhance the country's digital landscape.
The Ethiopian government has already signed agreements this year to support this strategy. Mohamed El Masri, managing director of Hodler Investments, highlighted the project's potential impact, stating that the partnership will "accelerate our mission to build distributed energy infrastructure that optimizes wasted energy resources regionally."
GCL Energy Investment will provide Ethiopia with the necessary infrastructure to utilize previously wasted energy, attracting global data center operators and reducing carbon emissions.
GCL Energy Investment CEO Wang Dong emphasized the partnership's goal to address challenges in Ethiopia's energy sector, stating, "We believe that modern technology coupled with smart capital can accelerate decarbonization and address the renewable funding gap."
To further support sustainable energy projects, Hodler Investments is launching a $500 million Digital Energy Infrastructure Fund, pending regulatory approval. The fund has already attracted interest from investors seeking energy solutions for AI and digital asset mining operations.
This collaboration follows GCL's previous agreements with the Ethiopian government to explore significant natural gas reserves in the Ogaden Basin. Ethiopia currently relies primarily on hydropower for its energy capacity of 5,200 megawatts, but is actively working to expand its resources to meet the growing demands of digital technology.
The partnership between Hodler and GCL aims to achieve Ethiopia's digital economy ambitions while promoting sustainable energy practices that can support a range of advanced technologies. The story is from The National.