Orange, Morrison Plan €3 billion France Data Center JV for Sovereign AI

France’s leading telecom operator Orange and global infrastructure investor Morrison have entered into an exclusivity agreement to create a jointly controlled data center company in France, marking a major push to build sovereign digital infrastructure for the AI era.

The 50/50 joint venture aims to expand Orange’s existing French data center portfolio to a target capacity of 400 megawatts, nearly ten times its current scale. Under the proposed structure, Orange will contribute five major data centers across four campuses in Chevilly-Larue, Aubervilliers, Chartres and Val-de-Reuil, along with its operational expertise and commercial reach. Morrison will bring its track record in infrastructure and data center investment, committing equity through its global value-add strategy to support the platform’s growth. The platform will be backed by a €3 billion investment program that leverages Orange’s existing assets, Morrison’s equity contribution and debt financing.

The partnership comes at a time when global demand for hosting capacity is surging due to the rise of AI, cloud computing and large-scale data processing. By developing this new platform, Orange and Morrison aim to position France as a leading location for digital infrastructure, offering solutions tailored to AI and cloud leaders and operated within the country. The platform will benefit from some of the most decarbonized electricity in Europe and target the highest standards of energy efficiency and environmental sustainability.

Orange Business is expected to be the exclusive partner for distributing colocation and hosting offers to large enterprises, SMEs and public-sector entities. Beyond hosting and storage, the sovereign platform will serve as a strategic foundation for Orange Business’s cloud and AI solutions, enabling the delivery of advanced, trusted services. Orange’s own platforms and services will continue to be hosted in the joint venture’s data centers, with Orange retaining operational control over areas dedicated to its operations, ensuring security and availability that meet stringent national and European standards.

Christel Heydemann, CEO of the Orange group, said: “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. This contemplated joint venture with Morrison will allow us to unlock the value of our existing assets and strengthen 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.”

William Smales, Chief Investment Officer at Morrison, added: “Europe’s digital future will require significant new investment in trusted infrastructure capable of supporting the growth of cloud services, artificial intelligence 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. We believe France is exceptionally well positioned to play a leading role in Europe’s digital economy.”

The signing of the transaction is expected by the end of 2026, subject to consultation with employee representative bodies and regulatory approvals, with closing targeted for the first quarter of 2027. The joint venture will be accounted for under the equity method upon closing, allowing both shareholders to combine industrial and commercial expertise to accelerate new capacity rollout.

| | IDCNOVA | Orange, Morrison, Data Center, Sovereign AI, France |