Khazna Data Centers to Boost Capacity by 1 GW by 2030
Khazna Data Centers, a prominent player in the UAE’s hyperscale infrastructure sector, has announced an ambitious plan to increase its operational capacity by over 1 gigawatt (GW) by 2030. This expansion is driven by the rising demand for AI-ready data infrastructure across various global markets, particularly in Saudi Arabia and Italy.
Expansion Plans and Key Markets
The company plans to develop more than 400 megawatts of new capacity in Saudi Arabia, Italy, and other strategic locations. The remaining capacity will be allocated to significant projects in Abu Dhabi, Dubai, and Ajman. This move signifies a pivotal moment for Khazna as it seeks to enhance its regional presence and global competitiveness.
Johan Nilerud, Chief Strategy Officer at Khazna, emphasized that the surge in customer demand is the primary catalyst for this expansion. He noted, “The AI boom is really shaping up now. The UAE has something unique; we’ve been preparing for this expansion for years, but now we’re seeing demand materialize from clients who need AI-optimized capacity.”
Construction and Investment Insights
Nilerud described the expansion as a massive construction effort involving thousands of engineers, planners, and technicians. He stated, “We’re building the buildings that will host all the compute power, the equipment that produces intelligence.” Each project represents a multi-million-dollar investment, although Khazna has not disclosed the total investment amount. Nilerud mentioned that constructing one megawatt of data center capacity typically costs around $10 million, depending on various design and resilience factors.
Khazna’s extensive experience in the industry gives it a competitive edge in a market filled with new entrants. “We own the full lifecycle—design, construct, and operate,” Nilerud explained. “Many players specialize in one stage, but when you serve clients investing for decades, you need that continuous learning loop from design to operations.”
Focus on Innovation and Sustainability
Innovation, speed, and sustainability are now critical components of Khazna’s strategy. Nilerud highlighted the need for continuous evolution in construction timelines and energy efficiency, noting that data centers are becoming increasingly energy-intensive. To address this, Khazna collaborates closely with utilities and power producers to facilitate the transition to cleaner energy sources.
Each new facility developed by Khazna contributes over $320 million to the GDP and creates more than 1,150 jobs, spanning from construction to long-term operations. “However you look at it, these are projects that move economies,” Nilerud remarked. “They also move skills; we’re building the next generation of electrical and mechanical engineers right here in the region.”
Notable Projects and Collaborations
Khazna’s upcoming campus in Italy, developed in collaboration with Eni, will utilize Blue Power, a low-carbon energy system that integrates gas and carbon capture technologies. Additionally, Khazna is responsible for delivering the infrastructure layer for Stargate UAE, a five-gigawatt AI campus in Abu Dhabi that will feature some of the region’s most advanced computing clusters.
The demand for data center capacity in the Gulf region is projected to triple by 2030, with the GCC expected to account for over 60% of the new capacity in the Middle East and Africa.
FAQs
What is Khazna Data Centers’ expansion plan?
Khazna plans to increase its operational capacity by over 1 gigawatt by 2030, focusing on markets like Saudi Arabia and Italy, along with significant projects in the UAE.
How does Khazna ensure sustainability in its operations?
Khazna collaborates with utilities and power producers to transition to cleaner energy sources, emphasizing energy efficiency and sustainable practices in its data centers.
What economic impact do Khazna’s facilities have?
Each new facility contributes over $320 million to the GDP and creates more than 1,150 jobs, supporting both construction and long-term operations.
Conclusion
Khazna Data Centers is poised for significant growth as it expands its capacity to meet the rising demand for AI-driven infrastructure. With a focus on innovation and sustainability, the company aims to strengthen its position in the global market while contributing positively to the regional economy. As these projects unfold, they will play a crucial role in shaping the future of data infrastructure in the Middle East.
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