UAE Real Estate Firm Damac to Expand into APAC Digital Infrastructure Market with a Data Center in Malaysia

UAE-based real estate firm Damac is set to make its mark in the rapidly growing APAC digital infrastructure market. With plans to develop a state-of-the-art data center in Cyberjaya, Malaysia, Damac is investing RM250 million ($52.4m) in this strategic expansion. This move signifies Damac’s first venture into data center development outside of the Middle East, highlighting the company’s commitment to international growth and its recognition of the immense potential in the APAC region.

Damac’s Investment in Malaysia

In a notable announcement, Fahmi Fadzil, Malaysia’s Minister of Communications and Digital, revealed Damac’s substantial investment of RM250 million in the Cyberjaya data center project. This investment underlines Damac’s confidence in the Malaysian market and its dedication to delivering cutting-edge digital infrastructure solutions to meet the region’s growing needs.

Location Options for the Data Center

With the expansion into Malaysia, Damac is actively evaluating potential locations for the data center. Both Cyberjaya, known as Malaysia’s Silicon Valley, and the bustling Central Business District of Kuala Lumpur (CBD KL), are being considered. The decision will be based on several factors, including proximity to key infrastructure, connectivity options, and overall suitability for the data center’s operations.

Damac’s Expansion Beyond the Middle East

The Cyberjaya data center marks a significant milestone for Damac as it extends its reach beyond the Middle East. This move reflects not only the company’s ambition for global market penetration but also its recognition of the opportunities presented by the fast-growing APAC digital infrastructure sector. Damac’s expansion into Malaysia will serve as a platform for future expansion into neighboring markets.

Future Data Center Developments in Indonesia and Thailand

Damac has already secured land in both Indonesia and Thailand for future data center developments. These strategic locations acknowledge the rapid digital transformation in Southeast Asia and aim to cater to the increasing demand for reliable and secure data storage and processing facilities. By diversifying its data center presence across different countries and regions, Damac aims to establish itself as a key player in the APAC market.

Damac’s data centers in Saudi Arabia

In addition to its ventures in APAC, Damac continues to strengthen its data center portfolio in Saudi Arabia. With current data centers in Dammam and Riyadh, the company is projected to deliver an impressive 55MW of power capacity by 2025. These data centers play a vital role in supporting the Kingdom’s digital transformation initiatives and meeting the evolving needs of businesses and consumers.

Data Center Plans in Amman, Jordan

Expanding its reach further into the MENA region, Damac has plans to establish a data center in Amman, Jordan. This move aims to tap into the country’s growing digital economy and position Damac as a key infrastructure provider in the region. The data center in Amman will contribute to the development of a robust digital ecosystem that facilitates innovation, entrepreneurship, and economic growth.

Recent Agreement in Saudi Arabia

Damac recently signed an agreement to build a data center and a cable landing station at the new King Abdullah Economic City in Saudi Arabia. This strategic partnership underscores Damac’s commitment to supporting the Kingdom’s ambitious Vision 2030 program, which seeks to diversify the economy and promote technological advancement. The data center and landing station will enhance connectivity and enable seamless data transfer, stimulating economic growth in the region.

Potential Developments in Spain, Italy, and Germany

While Damac’s immediate focus lies in expanding its presence in Southeast Asia and the MENA region, the company has hinted at potential data center developments in Spain, Italy, and Germany. By eyeing these European markets, Damac aims to capitalize on the increasing demand for digital infrastructure and cloud services, paving the way for future growth and international expansion.

Obstacles Faced in Ireland

Damac had previously planned to build a data center campus in Ireland. However, the project encountered obstacles when power contracts were denied to a partner company. Despite the setback, Damac remains committed to exploring alternative opportunities in Ireland and reaffirms its goal of establishing a strong data center presence across various global markets.

Damac’s entry into the APAC digital infrastructure market is an exciting milestone for the UAE real estate firm. The establishment of a data center in Cyberjaya, Malaysia, demonstrates Damac’s dedication to expanding its presence beyond the Middle East and capitalizing on the vast opportunities in the APAC region. Alongside its ongoing projects in Saudi Arabia, Jordan, and other future endeavors worldwide, Damac is positioned to become a key player in driving digital transformation and fostering economic growth in diverse markets globally.

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