Dubai Holding could take a stake in hyperscale data center developer Hscale as it looks to grow its presence in Europe.

The state-backed investment firm, which is owned by Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum and has a portfolio worth $136 billion, has hired advisors to investigate the possibility of buying part of Hscale, according to a report from Bloomberg.

Hscale launched last year after Bain bought 80 percent of Aquila Group’s data center business, AQ Compute, in 2024.

It currently has one live 6MW facility – OSL1 – outside Oslo in Honefoss, Norway. This was previously owned and operated by AQ Compute.

Hscale is planning to expand further in Norway, as well as develop projects in Spain (Madrid and Barcelona), Germany (Frankfurt), Switzerland (Zurich), and Dubai. The firm claims a 1GW development pipeline.

Last month, it bought a site in Milan as part of a plan to deliver 250MW of IT capacity in the Italian city.

Bain Capital, which has assets under management worth $225 billion, is also exploring other avenues to raise funds for Hscale’s data center build-out, the Bloomberg report said.