I Squared Capital joins Saudi Tabreed in bid for KAFD district cooling assets, sources say

KAFD's board is reviewing the latest round of bids, two sources said

Tabreed previously competed alone before teaming with I Squared, one source said

District cooling is widely used in the Gulf to serve buildings through chilled-water networks

By Federico Maccioni and Hadeel Al Sayegh

DUBAI, July 23 (Reuters) - U.S. infrastructure investor I Squared Capital has joined Saudi Arabia's Saudi Tabreed in bidding for the district cooling assets of Riyadh's King Abdullah Financial District (KAFD), according to three sources familiar with the matter.

Gulf sovereign wealth funds and state firms are increasingly recycling capital out of mature infrastructure assets to fund next-generation priorities, while leaning on private investors to share risk and bring operational knowledge. The deal would extend a wave of district-cooling consolidation across the region.

Saudi Tabreed currently operates and maintains KAFD's cooling infrastructure, which delivers chilled ​water via insulated pipes to cool offices, industrial and residential buildings.

Reuters reported in March that KAFD was seeking to sell its district cooling assets for more than $500 million, with non-binding offers submitted in the first week of that month. Tabreed and I Squared Capital had initially made separate bids before joining forces, one of the sources said.

The KAFD board is currently reviewing the latest round of bids from potential investors, two of the sources said.

I Squared Capital declined to comment, while KAFD and Saudi Tabreed did not respond to requests for comment.

Saudi Tabreed is part-owned by shareholders including Abu Dhabi's National Central Cooling Company, the UAE-listed Tabreed TABR.DU, and Saudi Arabia's $1.2 trillion wealth fund, Public Investment Fund (PIF).

It teamed up with CVC Capital Partners' infrastructure arm last year to acquire PAL Cooling Holding, Abu Dhabi's Multiply Group district cooling business, in a transaction that closed in October 2025 worth around 3.8 billion dirhams ($1.03 billion).

I Squared Capital said last week it plans to invest up to $2 billion in PIF's digital infrastructure and district cooling assets, split equally between the two sectors, with scope for the investment to expand further into related infrastructure businesses.

($1 = 3.6727 UAE dirham)


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.