Khazna builds the UAE’s largest data center

UAE’s Khazna Data Centers will develop the UAE’s largest data center in Ajman with a capacity of 100 MW, according to a press release. Set for completion in 3Q 2025, the new facility is (surprise) designed for AI applications. Khazna is the largest player in the industry by market share, operating centers with a combined capacity of 360 MW right now.

The rationale: The company is expecting data center capacity in the UAE to double to 850 MW by 2029, so it aims to take advantage of the growing demand, CEO Hassan Al Naqbi told The National. Demand is being driven by both domestic use of cloud services and growing international investment in tech here.

The company is also eyeing two additional 30 MW data centers, Al Naqbi said, suggesting announcements on that front will come within a matter of weeks.

Total investment cost? The average cost of construction of a data center clocks in at USD 8-12 mn per MW, Al Naqbi says, suggesting a total investment plan of about USD 720 mn by our math. Khazna currently has 24 live data centers in the UAE and eight under construction, amounting to a 74% market share, he added.

REMEMBER- The Dubai-based firm recently partnered with US cloud service provider Hewlett Packard Enterprise to build the UAE’s first direct-liquid cooled data center, capable of handling AI tech and high-performance computing.

Khazna plans to expand further into the Middle East and Asia. It is closing in on the location for a USD 250 mn data center in Egypt (set for completion in 2026) and is in advanced stages of construction in Saudi Arabia. Turkey and Southeast Asia are also on its radar.