Core42 Secures $550 Million HSBC Trade Finance Package to Scale AI Infrastructure Beyond the UAE

{getToc} $title={Table of Contents}

Abu Dhabi's Core42 locks in $550M HSBC trade finance for AI cloud rollout across the US and Europe - without giving up equity.

Core42, part of Abu Dhabi's G42 group, has arranged two structured trade finance facilities totalling $550 million with HSBC.
The first facility of $240 million closed in February 2026, with a second tranche of $310 million completed in May 2026.
Proceeds will fund AI cloud and compute deployments across the United States and Europe.
Both facilities are non-equity dilutive, preserving the existing G42 ownership structure.
Core42's European headquarters in Dublin anchors deployments now underway in Italy and France.
The deal reflects growing institutional recognition of AI infrastructure as a bankable, long-duration asset class.

G42's Sovereign Cloud Arm Taps Global Banking for Expansion Capital

Core42, the Abu Dhabi AI infrastructure operator within the G42 group, has formalised $550 million in structured trade finance with HSBC to fund the international rollout of its cloud and compute platforms. The non-equity dilutive trade finance arrangement preserves G42's ownership structure while providing the capital intensity required for large-scale hardware deployment cycles.

The facilities align with the UAE National AI Strategy 2031, which positions the country as a global producer - not just consumer - of AI cloud compute deployment capacity. For Core42, the deal marks a shift from reliance on strategic equity rounds toward infrastructure-grade financing. Institutional lenders now view G42's sovereign cloud platforms as creditworthy long-duration assets capable of supporting structured bank facilities.

How the $550 Million Facility Is Structured

The arrangement comprises two purpose-built tranches. A $240 million facility closed in February 2026, followed by a $310 million facility completed in May 2026. Both are structured as trade finance instruments tied to Core42's deployment cycles of AI cloud infrastructure hardware, including servers, graphics processing units (GPUs) and networking equipment.

By design, the facilities enable accelerated time-to-market for large-scale capacity buildouts linked to long-term contracted demand. Core42's Chief Financial Officer, Neha Gupta, described the arrangement as reflecting "growing institutional recognition of AI architecture as long-duration, industrial-grade capacity." Shaikha AlMarri, Head of Banking UAE at HSBC, added that the structures are designed to support current deployment while establishing a framework for streamlined future funding.

Scaling from Abu Dhabi to the United States and Europe

Core42's international expansion is already well advanced on both sides of the Atlantic. The company's European headquarters sits in Dublin, with active deployments in Italy and France supported by local governance partners across key markets. In the United States, Core42 has taken 20 megawatts of data centre capacity in a converted Minneapolis office building, adding to an existing footprint in California, Texas and New York.

The international push builds on Core42's domestic platform. In March 2026, Core42 and the CBUAE launched the world's first sovereign financial cloud for UAE banks. That initiative demonstrated the full-stack model - sovereign cloud regions, AI-optimised compute and managed services - that Core42 now aims to replicate for regulated, mission-critical workloads abroad.

The broader G42 ecosystem provides additional momentum. Microsoft invested approximately $1.5 billion in G42 in 2024, and the Stargate UAE campus - a joint venture involving OpenAI, SoftBank, Oracle and Abu Dhabi's MGX - is now taking shape. Its first phase of 200 megawatts is scheduled to come online by the end of 2026. Against that backdrop, the HSBC facilities give Core42 a dedicated capital line to fund its own cross-border buildouts without competing for group equity.

What This Signals for Technology and Corporate Advisory Teams

For advisory firms working with technology clients or institutional investors in the UAE, the Core42 deal offers a clear reference point. Trade finance structures tailored to AI hardware deployment cycles represent a new lending category that corporate finance teams will encounter more frequently as sovereign AI buildouts intensify across the Gulf. Firms advising G42 entities or their banking partners should note how lenders assess hardware residual value, data sovereignty covenants and cross-border deployment risks - factors that distinguish AI infrastructure from conventional technology financing.

What Clients are Asking their Advisors

What is Core42 and how is it connected to G42?

Core42 is the sovereign cloud and AI infrastructure arm of G42, an Abu Dhabi-based technology group backed by investors including Microsoft and Silver Lake. It builds and operates high-performance compute, cloud platforms and managed services for government and enterprise clients in the UAE and internationally.

Why did Core42 use trade finance rather than raising new equity?

Trade finance aligns repayment with the hardware import and deployment cycles of AI infrastructure, making it a natural fit for capital-intensive buildouts. The non-equity dilutive structure also preserves G42's existing ownership and avoids diluting strategic investors such as Microsoft and Silver Lake.

Where will Core42 deploy the new AI infrastructure capacity?

The $550 million in facilities is earmarked for the United States and Europe. Core42 already operates from a European headquarters in Dublin with deployments in Italy and France, and holds data centre capacity in several US states including California, Texas, New York and Minnesota.

Does this deal change Core42's sovereign cloud services inside the UAE?

The HSBC facilities are specifically structured for international expansion and do not replace Core42's domestic operations. Its UAE sovereign cloud platform, including the Central Bank partnership launched in March 2026, continues to serve government and financial sector clients within the country.