Hodler Investments, a UAE-based investment company, has announced plans to establish a $500 million Digital Energy Infrastructure (DEI) Fund. This Fund will offer professional investors and clients the opportunity to invest in utility-like income generating assets and distributed energy infrastructure for compute applications that adopt innovative methods for carbon capture, storage & utilisation. The DEI Fund’s investment mandate covers sectors such as clean energy, power generation, data mining for blockchain, AI, and other compute cluster applications with a focus on achieving zero-emissions.
The DEI Fund will also allocate capital investments towards vertical technology startups operating platforms and software that add value to the Fund’s portfolio, acquiring early to growth stage modern software technology companies active in digital infrastructure and software applications. Hodler has engaged Ento Capital Management to advise on, structure, establish, and manage the DEI Fund, showcasing commitment to developing critical energy infrastructure for the advancement of the digital economy globally.
Global spending on construction of new data centers is expected to surpass $49 billion by 2030, presenting an opportune time to power the advancement of compute infrastructure for a vibrant digital economy. The DEI Fund, utilizing technologies such as blockchain, A.I., digital asset mining, and other solutions combined with energy resources, aims to strengthen the feasibility for sustainable energy infrastructure to meet the growing compute power demands while contributing to power grid stability for more equitable energy systems globally.
The Fund is expected to have a size of between $250 million and $500 million, including in-kind commitments with a value not exceeding the total capital commitments. Hodler has secured over $300 million in exclusive deal-flow across various regions, showcasing a strong pipeline of deals and projects that have been vetted by their qualified team of professionals with a decade of industry expertise and long-standing relationships with institutional stakeholders across the Middle East, Asia, and North America.
Amer Al Osh, Chief Development Officer, Gewan Holding expressed confidence in working with Hodler to establish a compliant structure for the DEI Fund, subject to regulatory approval, particularly in light of recent advancements in UAE regulations around digital assets and favorable laws for digital assets and AI sectors. The Fund’s capital commitments will focus on providing Limited Partners exposure to an existing energy envelope with offtake commitments and deal-flow from companies with high growth potential and proven business models.
