Core42, a subsidiary of G42, a UAE-based AI and cloud computing company, has announced the closing of $550 million in structured trade finance facilities from HSBC. This funding will accelerate the expansion of its AI cloud and compute infrastructure in the US and Europe. The news that Core42 raises $550M from HSBC highlights the company’s growing momentum in the industry.
This deal is one of the largest AI infrastructure financing transactions in the region. It also underscores the increasing global investment in sovereign AI infrastructure. In fact, Core42 raises $550M from HSBC, which sets a new milestone for the sector.
The $240 million and $310 million facilities were closed in February and May 2026 respectively and form the financing package. Core42 said the capital will be used to support large-scale AI compute deployments built for enterprise, government and hyperscale customers. The announcement that Core42 raises $550M from HSBC also demonstrates commitment to scaling AI capabilities worldwide.
Core42 scales sovereign AI infrastructure
Core42 provides sovereign cloud and AI infrastructure solutions for governments and enterprises to maintain local control over data, AI workloads and compute resources.
The company has been rapidly expanding its footprint outside the UAE. Deployments are now underway in Italy and France. Meanwhile, it operates its European headquarters from Dublin.
The new funding’s non-equity dilutive nature means Core42 can scale its operations without giving up ownership of the company. This structure is increasingly appealing for AI infrastructure providers with huge capital needs tied to data centers, GPU clusters and high-performance computing systems. Notably, Core42 raises $550M from HSBC to fund these growth initiatives.
“This is a significant milestone for Core42 and the AI infrastructure industry,” said Neha Gupta, Chief Financial Officer of Core42.
“Institutional investors are starting to think of AI infrastructure as a long-term industrial-grade capacity, rather than a short-term tech spend,” she said.
AI Infrastructure Demand Continues to Skyrocket
The announcement comes amid a continued surge in global demand for AI compute power. In response, governments and businesses are investing heavily in sovereign AI systems. They seek to ensure data residency, regulatory compliance and national AI competitiveness.
Core42 says the facilities will help accelerate deployment timelines for enterprise-grade AI workloads while strengthening its global expansion strategy.
Industry analysts have increasingly pointed to sovereign AI infrastructure as one of the fastest-growing segments of the AI economy. Companies that can provide localized AI cloud services with governance controls are attracting strong institutional support.
HSBC’s participation is also a signal of increasing confidence from traditional financial institutions in the long-term growth of the AI infrastructure markets.
Europe, US emerge as key growth markets
Core42 is emerging as a global AI infrastructure operator, capable of serving government and enterprise customers in multiple regions.
The company’s infrastructure strategy is centered on industrial-scale AI capacity and sovereign cloud governance. The European and US deployments are anticipated to meet the increasing demand for generative AI applications, enterprise AI systems and regulated AI environments. As a result, it is even more notable that Core42 raises $550M from HSBC to support these markets.
“It’s about governance and regulatory clarity to scale mission critical AI infrastructure globally,” said Roopal Jobanputra, General Counsel, Core42.
As AI adoption speeds up globally, large financing deals such as this one show how infrastructure providers are rushing to build the backbone needed to power next-generation AI systems.
The funding also highlights the UAE’s growing clout in the global AI ecosystem, especially through G42 and its increasing network of AI infrastructure initiatives.
The rise of sovereign cloud systems and artificial intelligence infrastructure continues reshaping global technology investment strategies as governments and enterprises compete for AI leadership.
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