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Damac Group ramps up data center investments: Damac Group plans to invest approximately USD 3 bn in establishing data centers across Southeast Asia through its subsidiary Edgnex, Bloomberg reports. The investment will primarily target Malaysia, Indonesia, and Thailand over the next three to five years.
Key updates:
- The first of three planned data centers in Thailand will launch in Bangkok in March 2025, utilizing Nvidia chips;
- Edgnex has secured land for two additional data centers in Malaysia and Indonesia, incorporating Nvidia’s Blackwell chips;
- Edgnex is forming a joint venture with Siam AI, a Nvidia cloud partner, allocating part of its Bangkok data center’s capacity to the partnership, with plans to acquire Nvidia chips for the facility;
- Edgnex is exploring opportunities for similar projects in Vietnam and the Philippines, with agreements expected in 2025.
Market potential: Edgnex estimates Southeast Asia could represent a USD 5 bn market, with its projected capacity exceeding 550 MW. Regional demand for data center services is forecasted to grow from 14.3 GW in 2024 to 23.2 GW by 2029, Nayar said.
Background: Earlier this year, Damac announced plans to invest USD 1 bn in data centers through Edgnex to address rising demand for digital infrastructure. This comes as part of the group’s broader strategy of investing USD 5 bn to 7 bn globally over the next few years to expand its operations, Danish Nayar, senior vice president of investments and acquisition at Damac Group, told Bloomberg.
The company has been investing outside of SouthEast Asia as well: Edgnex is investing USD 600 mn in data centers in Dammam and Riyadh in Saudi Arabia, expected to launch next year. The company also signed a MoU with Salam, Cinturion, and Emaar, Economic City, to develop a digital infrastructure hub in Jeddah. Additionally, Edgnex allocated USD 100 mn with Vodafone Turkey for a 6 MW data center in Izmir, also set to go online next year.
