I Squared Capital plans to invest as much as $2 billion in Saudi Arabian infrastructure and property assets linked to the Public Investment Fund. The global asset manager and PIF announced the plan in a joint statement on July 13. The investment will be divided between digital infrastructure and district cooling facilities.

I Squared could place up to $1 billion in each of the two areas, with the possibility of expanding into related businesses later. The companies involved and the individual assets have not yet been disclosed. The agreement follows an earlier decision by I Squared and PIF to establish an infrastructure investment strategy focused on the Middle East.

District cooling facilities supply chilled water through insulated pipes to offices, homes and industrial buildings. Such systems can serve large developments from central plants, reducing the need for separate cooling equipment in every building. Saudi Arabia’s King Abdullah Financial District, a PIF unit, had been seeking more than $500 million for its district cooling assets, according to an earlier Reuters report.

The planned investment comes as Saudi Arabia seeks more capital for industries outside the oil sector. PIF has placed funds in several fields, including sports, video games, technology and SpaceX. Digital infrastructure and efficient urban cooling are also becoming increasingly important as the country expands major commercial and residential developments.

I Squared already has experience in digital assets. In May, it acquired ten data-centre facilities in the United States from Cogent Fiber, adding to its international infrastructure portfolio.