Orange and Morrison Launch €3 Billion Data Center Venture in France
The Franco–New Zealand partnership targets 400MW of capacity to bolster European cloud and AI infrastructure.
French telecom giant Orange and New Zealand-based infrastructure manager Morrison announced on July 27, 2026, an exclusivity agreement to create a jointly controlled data center company in France, backed by a €3 billion investment program.
The 50-50 venture aims to scale capacity to 400MW—nearly ten times Orange's current operational footprint—as cloud and AI services drive unprecedented demand for compute infrastructure across Europe.
Assets and Timeline
Orange will contribute five existing data centers across four French campuses: Chevilly-Larue, Aubervilliers, Chartres, and Val-de-Reuil. The investment program combines these assets with Morrison equity and debt financing.
The transaction is expected to close by end of 2026 and complete in Q1 2027, pending regulatory approvals and employee consultation.
Morrison, founded in 1988, brings infrastructure investment expertise from its New Zealand base to Europe. The partnership marks a strategic shift for Orange, treating compute infrastructure as a core business rather than a secondary offering.
Digital Sovereignty Push
Both companies frame the deal as strengthening European digital sovereignty for cloud and AI services. The venture arrives as European institutions and national governments seek to reduce dependence on US-based cloud providers.
France's low-emission nuclear power grid provides a competitive advantage for energy-intensive AI data centers, aligning with EU climate goals while offering the consistent power delivery that hyperscale operations require.
Scaling for AI Demand
The 400MW target addresses a physical infrastructure bottleneck constraining Europe's sovereign AI ambitions. Current capacity falls far short of projected demand as enterprises migrate workloads and AI training clusters require dedicated facilities.
By combining Orange's campus footprint with Morrison's capital and operational expertise, the venture positions itself to capture growth in both enterprise cloud services and AI infrastructure hosting.
The deal reflects broader consolidation trends in the European data center market, where traditional telecom operators partner with infrastructure investors to fund the capital-intensive expansion required by next-generation workloads.