Orange, Morrison plan French data centre venture to meet AI demand

July 27 (Reuters) - French telecoms operator Orange and infrastructure investor Morrison plan to create a data centre joint venture in France to expand capacity and meet rising demand for artificial intelligence and cloud services, the companies said on Monday.

The 50-50 venture would target 400 megawatts of capacity, nearly 10 times Orange's current level, and would be supported by a €3 billion ($3.41 billion) investment programme combining Orange assets, Morrison funding and debt.

Orange would contribute five data centres in France, while Morrison would provide equity funding to support the platform's growth.

The companies expect to sign the transaction by the end of 2026 and complete it in the first quarter of 2027, subject to approvals.

($1 = 0.8794 euros)

(Reporting by Anna Peverieri in Barcelona; Editing by Chris Reese)