Investment firms Hodler Investments and Gewan Holding from the United Arab Emirates have announced the creation of a $500 million Digital Energy Infrastructure (DEI) Fund. This fund will aim to finance projects that are essential for facilitating the development of the digital economy by specializing in the energy sector.
The DEI Fund will be focused on diverse opportunities and possibly invest in sectors such as power generation, data mining, blockchain technology, Depin, and AI. The fund also seeks the development of both small and large businesses, IT companies, and startups in these focal areas.
It is an exempt fund that is close-ended and its clients can invest in assets that provide utility-like returns on distributed energy infrastructure. It has already received soft commitments from lead investors, in-kind contributions, and partners seeking energy solutions for AI and digital asset mining.
Mohamed El Masri and Alaa Al Ali Discuss DEI Fund’s Impact on Digital Economy and Energy Security
Mohamed El Masri of Hodler Investments explained that this decision is in line with their objectives as the managing director stated. He also stressed that with DEI Fund, they are showing their dedication to creating critical energy infrastructure for the global digital economy progression. He said that it is consistent with the UAE’s strategic plan for the digital economy, which focuses on sustainability, energy security, and ending energy poverty.
Apart from applications of compute clusters in DEI Fund, the Fund will also invest in specialized vertical tech startups, operating platforms and software that complement its portfolio. This consists of investing in early-mid stage tech companies and special purpose applications across industries, especially in fintech, DeFi, and Web 3.0.
Alaa Al Ali, Founder and CEO of Gewan Holding argued that the world needs a distributed, sustainable energy infrastructure to support new digital economy nodes. This belief is reflected in the DEI Fund and its function to further the construction of infrastructures that are necessary for the digital age.