Abu Dhabi’s Khazna Data Centres, one of the leading data center operators in the Middle East, has taken a significant leap by announcing the construction of a 100-megawatt data center in Ajman, projected to be the largest in the UAE. Scheduled to become operational by the third quarter of 2025, this new facility is specially designed to be artificial intelligence (AI) ready, underscoring Khazna’s forward-thinking approach. Hassan Al Naqbi, Khazna’s CEO, revealed during an interview at the Gitex Global technology conference in Dubai that the company’s data center capacity in the UAE is expected to nearly double to 850 megawatts by 2029, up from the current 430 megawatts.
Significant Investments and Construction Plans
Innovative Data Centers on the Horizon
Planned to become the largest in the UAE, Khazna’s 100-megawatt data center in Ajman represents a milestone in the region’s data infrastructure. The data center is designed with advanced AI capabilities in mind, aligning with contemporary needs for high-performance computing and vast data storage solutions. This ambitious project highlights Khazna’s commitment to investing in cutting-edge technology to meet rising data demands. Furthermore, Khazna’s growth strategy includes two additional 30-megawatt data centers, details of which are expected to emerge in the coming weeks.
During the Gitex Global technology conference, Al Naqbi indicated that the construction costs for these new facilities range between $8 million and $12 million per megawatt. However, he did not provide specifics regarding the total investment for the upcoming projects in Ajman and the additional 30-megawatt centers. As a subsidiary of Abu Dhabi’s AI giant G42, Khazna leverages significant resources and advanced technological expertise. Presently, the company operates 24 live data centers across the UAE, and it is in the process of constructing eight more, holding an impressive market share of approximately 74%.
Pandemic-Induced Surge in Data Consumption
The COVID-19 pandemic significantly accelerated remote working trends, resulting in an unprecedented boost in data consumption and the adoption of cloud services, particularly throughout the Middle East. This surge is driven largely by technology-savvy young consumers and a rapidly advancing digital landscape supported by robust government initiatives. In response to these evolving demands, global tech giants such as Microsoft, Amazon, Oracle, IBM, and Alibaba Cloud have also established substantial data and cloud centers within the region. This influx of major players indicates the Middle East’s robust market potential for cloud services and data management.
Khazna’s expansion is not only about increasing capacity; it’s also about advancing their technological capabilities, particularly regarding AI. The newly announced AI-ready data center in Ajman is an example of how Khazna aims to cater to the growing demand for high-performance computing solutions. By accommodating AI and machine learning workloads, Khazna is positioning itself at the forefront of technological innovation in the data center industry.
Global Expansion and Sustainability Aspirations
New Ventures Beyond the UAE
Khazna is extending its reach beyond the UAE, with strategic developments across the Middle East and North Africa. Among Khazna’s plans is a $250 million data center in Egypt, which is expected to be complete by 2026, demonstrating their commitment to expanding their footprint in MENA. Additionally, construction is already advancing in Saudi Arabia, another critical market for Khazna’s strategic growth. The company’s expansion doesn’t stop at regional boundaries; a partnership with Microsoft signifies their venture into Kenya, where they plan to build a geothermal energy-powered data center, highlighting a strong commitment to sustainability. Discussions are also ongoing with Turkey as potential opportunities unfold.
Khazna’s ambitions extend even further as they explore the Southeast Asian market, targeting countries like Malaysia, Indonesia, Thailand, Vietnam, and the Philippines. These moves are indicative of Khazna’s aggressive global expansion strategy aimed at capturing new markets and accommodating the increasing global demand for data center services. Their international ventures are not simply about expanding geographic presence; they signify a comprehensive strategy that includes forming essential partnerships and leveraging local resources to ensure sustainable growth.
Commitment to Environmental Responsibility
Khazna Data Centers, a prominent data center operator in Abu Dhabi, has announced a bold initiative: the construction of a 100-megawatt data center in Ajman, set to be the largest in the UAE. Slated to become operational by the third quarter of 2025, this new facility is strategically designed to accommodate artificial intelligence (AI) capabilities, highlighting Khazna’s commitment to innovation and technological advancement.
During the Gitex Global technology conference in Dubai, Khazna’s CEO, Hassan Al Naqbi, shared that the company’s UAE data center capacity is forecasted to nearly double to 850 megawatts by 2029, up from the current 430 megawatts. This expansion reflects Khazna’s vision to strengthen its position as a leader in the data center industry, addressing the growing demand for digital infrastructure in the region. Khazna’s ambitious plans are set to play a crucial role in supporting the UAE’s digital transformation, catering to the increasing requirements of businesses and government entities alike.