Phoenix Group Launches European AI Data Center Push With 18MW France Buildout
Abu Dhabi-based digital infrastructure operator Phoenix Group plans to build its first European data center through a partnership with French developer DC Max, marking the company’s latest push to expand beyond bitcoin mining and establish a broader AI and high-performance computing platform.
Phoenix Group said in a statement Wednesday that the project will center on an 18-megawatt facility in Lyon, France, serving as the inaugural deployment under a broader European data center platform boasting a target of more than 1 gigawatt of AI and HPC capacity across Europe and the Gulf region.
The company said it has already acquired the Lyon site, where permits, grid connection and contracted power are already secured, allowing construction to begin in July. Phoenix told TheEnergyMag that the site is expected to be energized from October 2026 onward, and it is expected to be ready for service between the fourth quarter of 2027 and the first quarter of 2028.
The company is partnering with DC Max, which Phoenix said in the statement has a pipeline of more than 1GW of development opportunities across France and other European markets. Phoenix described the arrangement as a recurring rather than a one-off transaction, with the combined pipeline estimated to represent roughly $8 billion in potential projects.
Phoenix declined to disclose expected capital expenditures for the Lyon buildout at this stage, though it said costs would align with prevailing market rates for AI-focused data center infrastructure.
Unlike some bitcoin miners pivoting into AI cloud services, Phoenix noted that it does not plan to deploy or own GPUs at the Lyon site. Instead, it intends to operate as an infrastructure provider, building and leasing high-density AI capacity to enterprise and neocloud customers.
“Our model is to build, operate, and lease capacity to enterprise and neocloud customers,” the company told TheEnergyMag in a statement, adding that the site has attracted interest from prospective tenants.
The announcement highlights how bitcoin mining operators are increasingly repositioning themselves as power and infrastructure companies to capitalize on surging AI demand, particularly as hyperscalers and cloud providers scramble to secure power capacity across Europe and North America.
Phoenix added that its broader strategy includes both acquiring new AI-ready sites and redeveloping portions of its legacy infrastructure portfolio for higher-value AI workloads. The company said additional redevelopment plans tied to existing sites will be announced later in 2026.
Phoenix Group currently reports 550MW of deployed capacity across the UAE, Oman, North America and Ethiopia.
