Abu Dhabi-based AI infrastructure company Core42 has secured $550 million in structured trade finance facilities from HSBC as the company accelerates its sovereign AI cloud and compute expansion across the United States and Europe.
The financing package, split into two facilities worth $240 million and $310 million, was completed in February and May 2026 respectively. Core42 said the funding will support large-scale AI cloud deployments tied to long-term enterprise, government, and hyperscale demand.
The company described the facilities as “non-equity dilutive,” meaning the capital was raised without issuing new shares or reducing shareholder ownership. That structure is increasingly attractive for infrastructure-heavy AI firms seeking expansion capital while maintaining operational control.
AI Infrastructure Enters a New Financing Era
The deal highlights how financial institutions are beginning to treat AI infrastructure less like speculative technology spending and more like industrial-scale infrastructure investment.
Core42, a subsidiary of Abu Dhabi technology group G42, focuses on sovereign cloud platforms, AI compute infrastructure, and hyperscale AI environments designed for governments and regulated industries. The company has been positioning itself as a provider of “sovereign AI” infrastructure, a model centered on local data governance, regulatory compliance, and national control over AI systems.
Neha Gupta, Chief Financial Officer at Core42, said: “The trade finance facilities represent a defining moment for Core42 and for the broader AI infrastructure sector, reflecting growing institutional recognition of AI architecture as long-duration, industrial-grade capacity. 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. As enterprises and governments scale mission-critical AI workloads, the underlying cloud and compute platforms must be resilient and built to support sustained demand.”
The transaction also reflects growing institutional appetite for financing AI infrastructure globally as demand for generative AI systems drives aggressive investment into data centers, cloud platforms, and high-performance computing environments.
The financing arrives during a period of rapidly rising global investment in AI infrastructure.
A recent Core42 white paper citing JP Morgan projections estimated that global investment in data centers could reach $5 trillion over the next five years as demand for AI compute capacity continues to surge.
That race for compute infrastructure has intensified competition among hyperscalers, sovereign AI providers, semiconductor companies, and governments seeking to secure long-term AI capabilities.
Core42 Expands Its Global AI Footprint
Core42 said the new financing will support deployments across the US and Europe, where the company has been steadily expanding its presence.
The company’s European operations are anchored by a regional headquarters in Dublin, announced in late 2025, with additional deployments and partnerships underway in Italy and France.
Core42 previously said the Dublin hub would serve as a regional base for engineering, customer delivery, regulatory engagement, and ecosystem partnerships as European demand for AI infrastructure grows.
The Abu Dhabi-based company has also been expanding internationally through new partnerships, sovereign AI infrastructure initiatives, and leadership appointments tied to its global growth strategy.
That broader expansion comes as governments and enterprises increasingly seek regionally governed AI infrastructure rather than relying entirely on foreign hyperscalers. The trend has become particularly pronounced in sectors involving sensitive data, national security, healthcare, and financial services.
Sovereign AI Emerges as a Global Priority
Core42 has spent the last two years building infrastructure partnerships around sovereign AI deployments, particularly in Europe and the Middle East.
The company works with several major technology partners, including Microsoft, NVIDIA, AMD, and Cerebras.
Its infrastructure portfolio includes sovereign public cloud offerings, private cloud systems, AI cloud environments, and managed deployment services aimed at enterprises and governments requiring localized compliance controls.
Industry analysts increasingly view sovereign AI infrastructure as a strategic growth segment, especially as countries seek greater control over data residency and AI governance frameworks.
The financing arrangement with HSBC may also signal broader changes in how banks approach AI-related lending. Rather than focusing solely on software startups or consumer AI applications, lenders are increasingly evaluating long-duration AI infrastructure projects with contracted demand and enterprise-grade workloads.
