Latest news with #districtCooling
Zawya
3 days ago
- Business
- Zawya
UAE's Tabreed, CVC in exclusive talks to buy Multiply unit, sources say
DUBAI - Engie-backed National Central Cooling, known as Tabreed, and CVC are in exclusive talks to buy Abu Dhabi-based Multiply Group's district cooling business in a deal expected to value the unit at more than $1 billion, two sources told Reuters. Tabreed and private equity firm CVC were the top bidder for PAL Cooling Holding (PCH), the sources familiar with the matter said, adding that bilateral talks with the seller had started. One of the sources said the bid was close to $1.1 billion. The interest in PCH highlights how international buyout groups are increasingly looking to invest in the Gulf region as governments there strive to diversify their economies from oil. In a statement, Tabreed said it did not comment on market rumours or speculation, adding any material transactions would be disclosed to the market as and when they are finalised. CVC declined to comment, while Multiply Group did not immediately respond to a request for comment. Reuters reported in April that CVC was working with Tabreed to jointly bid for PCH. District cooling plants, which deliver chilled water via insulated pipes to cool offices, industrial and residential buildings, have been developed as a more economical and environmentally friendly alternative to air conditioning. They are popular in the United Arab Emirates and elsewhere in the Arabian Peninsula, where summer air temperatures can soar above 50 degrees Celsius (122 degrees Fahrenheit). Founded in 2006, PCH has several plants in Abu Dhabi with a combined design capacity of 242,000 refrigeration tonnes, according to its website. Reuters reported in April that the sale had drawn interest from bidders including KKR, I Squared Capital, Investcorp and TAQA, and was expected to fetch about $1 billion. Multiply is controlled by IHC, whose chairman is Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and brother of the country's president who controls a sprawling business empire including two sovereign wealth funds. (Reporting by Hadeel Al Sayegh Editing by Mark Potter)
Reuters
3 days ago
- Business
- Reuters
Exclusive: UAE's Tabreed, CVC in exclusive talks to buy Multiply unit, sources say
DUBAI, May 30 (Reuters) - Engie-backed National Central Cooling ( opens new tab, known as Tabreed, and CVC are in exclusive talks to buy Abu Dhabi-based Multiply Group's ( opens new tab district cooling business in a deal expected to value the unit at more than $1 billion, two sources told Reuters. Tabreed and private equity firm CVC were the top bidder for PAL Cooling Holding (PCH), the sources familiar with the matter said, adding that bilateral talks with the seller had started. One of the sources said the bid was close to $1.1 billion. The interest in PCH highlights how international buyout groups are increasingly looking to invest in the Gulf region as governments there strive to diversify their economies from oil. In a statement, Tabreed said it did not comment on market rumours or speculation, adding any material transactions would be disclosed to the market as and when they are finalised. CVC declined to comment, while Multiply Group did not immediately respond to a request for comment. Reuters reported in April that CVC was working with Tabreed to jointly bid for PCH. District cooling plants, which deliver chilled water via insulated pipes to cool offices, industrial and residential buildings, have been developed as a more economical and environmentally friendly alternative to air conditioning. They are popular in the United Arab Emirates and elsewhere in the Arabian Peninsula, where summer air temperatures can soar above 50 degrees Celsius (122 degrees Fahrenheit). Founded in 2006, PCH has several plants in Abu Dhabi with a combined design capacity of 242,000 refrigeration tonnes, according to its website. Reuters reported in April that the sale had drawn interest from bidders including KKR, I Squared Capital, Investcorp and TAQA, and was expected to fetch about $1 billion. Multiply is controlled by IHC ( opens new tab, whose chairman is Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser and brother of the country's president who controls a sprawling business empire including two sovereign wealth funds.
Zawya
4 days ago
- Business
- Zawya
Tabreed operates 92 AI-managed plants in 6 countries from Abu Dhabi hub
National Central Cooling Company, Tabreed, operates a district cooling network comprising 92 plants across six countries, delivering over 1.3 million refrigeration tonnes to its customers, all centrally managed through its control centre in Abu Dhabi. Speaking on the sidelines of the World Utilities Congress held at ADNEC in Abu Dhabi, Khalid Al Marzooqi, Chief Executive Officer of Tabreed, said artificial intelligence will play a pivotal role in the next phase of enhancing energy efficiency in district cooling operations and reducing further carbon emissions. He highlighted that Tabreed is the first district cooling company in the region to collect vast volumes of real operational data over more than 27 years, which has enabled it to accelerate digital transformation and implement AI in its operations. This is demonstrated through its control and monitoring centre located on Saadiyat Island, Abu Dhabi, which remotely oversees and manages all of Tabreed's plants across the six countries. Al Marzooqi added that reaching this level means full automation of plant operations and activation of 24/7 monitoring and control systems, laying the groundwork for the next step—leveraging AI capabilities to proactively optimise plant performance and align production with cooling demand. This, he explained, boosts energy efficiency, reduces pressure on power grids, and ultimately enhances the role of district cooling in cutting carbon emissions and supporting global efforts to achieve net-zero emissions by 2050.
The National
4 days ago
- Business
- The National
Tabreed optimistic data centres will adopt district cooling amid sustainability push
Abu Dhabi-based National Central Cooling Company, also known as Tabreed, is optimistic that power-hungry data centres will soon tap district cooling services, which offer a sustainable alternative, its chief executive has said. The utility's geothermal power-fed district cooling technology with its 'inexhaustible source' will be an appealing option for data centres, which consume massive amounts of energy and generate a lot of heat, Khalid Al Marzooqi told The National at the World Utilities Congress in Abu Dhabi on Wednesday. Asked whether data centres will be game-changing for district cooling, he said: 'Well, we hope so.' Tabreed began using geothermal energy in December 2023 when it launched G2Cool in Masdar City, in collaboration with energy major Adnoc. 'When we started [the use of] geothermal [energy], we were targeting data centres because we knew that companies like Google and Amazon need … green data centres with the renewable energy sources,' Mr Al Marzooqi said. 'Since [data centres] don't have the ability to generate power and [there] are other players in the market to provide that, the option would be to go with geothermal. This is a great source of energy.' Data centres are mushrooming globally amid the boom in artificial intelligence and machine learning, which requires the processing of massive amounts of data. Increasingly, more sustainable and eco-friendly systems – including those powered by wind, solar and water – are being used by the technology industry to make data centres more efficient, in addition to reducing emissions and being able to recycle heat waste into producing more electricity. Unlike renewable sources such as wind or solar, geothermal energy is not bound by the availability of resources and 'it's [available] 24/7 all year round', Mr Al Marzooqi said. 'You have a typhoon, it doesn't matter, because geothermal is a subterranean source of energy. 'All it needs is just simply scaling it up so the option is there now for data centres … it plays very well with the narrative we had two years ago when we started [G2Cool]". Tabreed is also keeping its options open for international expansion. At the moment, it is focusing on Asia, a market that Mr Al Marzooqi said is 'very challenging' owing to the lack of knowledge about district cooling and regulations. 'The concept of district cooling is very small and minor, and the whole concept of a large district cooling company is not there, so you need to educate the customers. And … there's a bit of a risk entering a market which is unregulated,' he said. The global district cooling market was valued at about $26.8 billion last year, with the Middle East and Africa having the lion's share at 34.6 per cent, data from Fortune Business Insights shows. The market is projected to rise by about 80 per cent to more than $48 billion by 2032. 'For the time being we are looking at maybe the private sector [in the UAE], something that is large enough because we need an anchor load,' Mr Al Marzooqi said. 'The UAE and the [Middle East] region is a large market, and [that's] where my main focus would be, more than international.'
Arabian Business
14-05-2025
- Business
- Arabian Business
Tabreed has a flat Q1 but excitement builds over its Palm Jebel Ali deal
National Central Cooling Company (Tabreed), the Abu Dhabi-based district cooling company, reported flat revenue for the first quarter of 2025 as consumption decreased nearly 7 per cent due to colder-than-average weather in the UAE. EBITDA and net profit increased year-on-year, but group revenue slipped marginally by AED2 million (US$540,000) to AED466 million (US$126.9 million). For Q1 2024, the company had reported revenue of AED468 million (US$127.4 million). Tabreed's EBITDA increased by 4 per cent YoY to AED283 million (US$77.1 million), with an improved margin of 61 per cent, while net profit after tax increased to AED115 million (US$31.3 million), growing by 3 per cent compared to Q1 2024. While consumption volumes decreased by 7 per cent in first quarter, Tabreed's total connected capacity reached 1.33 million Refrigeration Tons (RT), having added 4,599 RT of new customer connections in the quarter. Dr Bakheet Al Katheeri, Chairman of Tabreed, focused on the future and his company's historic recent deal with Dubai Holding Investments. 'On the surface all appears 'business as usual' and, indeed, the Q1 results demonstrate a company with stability and dependability at its core. While this is entirely true, behind the scenes, there is incredible drive and energy facilitating substantial expansion in key markets, Dubai being a prime example,' said Dr Al Katheeri. 'Our recent landmark deal with Dubai Holding Investments perfectly encapsulates the spirit of Tabreed, which prizes strategic partnerships with organisations aligned with our values and objectives. 'Tabreed's resilience is one of its hallmarks and only through prudent financial stewardship is the company in a position to commit to such long-term, significant investments. The value to investors will increase, the positive environmental impact will continue to grow, with greater uptake of its globally renowned services. The future is brighter than ever for Tabreed.' Major district cooling deal The Dubai Holding announcement was made in March, which confirmed that Tabreed had entered a concession agreement in partnership with Dubai Holding Investments to exclusively provide district cooling services to Palm Jebel Ali, one of the region's most eagerly awaited projects. The 250,000 RT concession is a significant milestone in Tabreed's history, as it represents roughly one-fifth of the company's total connected capacity. The network will require an estimated investment of AED1.5 billion (US$410 million), making it the biggest greenfield deal in Tabreed's 27-year history. The company owns and operates 92 plants in its portfolio, including 76 in the United Arab Emirates, and provides air-conditioning to such iconic UAE developments as Burj Khalifa, Sheikh Zayed Grand Mosque, Louvre Abu Dhabi, Ferrari World, Emirates Towers, Yas Island, Al Maryah Island, Dubai Mall, Dubai Opera, Dubai Metro and the Jabal Omar Development in the Holy City of Makkah.
