UAE-based Hodler Investments and GCL Energy, a subsidiary of China’s GCL Group, have partnered to develop a distributed energy infrastructure in Ethiopia. This project will power data centers hosting AI, blockchain, and other applications via green energy.
The Memorandum of Understanding between the two companies outlines plans to invest in energy-efficient and sustainable projects. GCL Group, an integrated clean energy company, will supply energy infrastructure designed to utilize under-used energy resources in Ethiopia. The aim is to attract global data center operators and reduce carbon emissions.
In April 2024, GCL Group also signed two production sharing agreements with the Ethiopian government for gas exploration in the Ogaden Basin. The region has an estimated 200 billion cubic meters of gas reserves and 46 million tonnes of oil reserves.
Ethiopia is positioning itself as a digital hub in Africa, with a strategy to become a leading destination for Bitcoin mining and other digital industries. In 2024, Ethiopia signed an agreement to expand data infrastructure and AI capabilities, supporting its “Digital Transformation Strategy 2025.”
Ethiopia’s data center market was valued at $95 million in 2022 and is projected to grow to $226 million by 2028. Most of Ethiopia’s current 5,200 MW power capacity comes from renewable sources, primarily hydropower, with smaller contributions from wind and thermal power.
The new distributed energy project by Hodler Investments and GCL Energy will be funded by Hodler Investments’ planned $500 million Digital Energy Infrastructure (DEI) Fund, launched with support from UAE’s GEWAN holding. The fund aims to support energy and connectivity solutions for digital asset mining and AI operations across the region.
Hodler Investments’ Managing Director, Mohamed El Masri, and GCL Energy’s CEO, Wang Dong, have both expressed positive to using this project to address energy challenges and enhance digital infrastructure in Ethiopia.