Today's Edition
ISIDORA CIRIC (ABU DHABI)
Abu Dhabi is making a decisive leap onto the global digital infrastructure map, with its live data centre capacity expected to nearly double by 2026, rising from 241MW this year to 398MW, according to Knight Frank's Global Data Centres Report 2025. This growth is the main force behind a nationwide expansion that is projected to push the total live capacity across the UAE to 500MW.
Knight Frank ranks the UAE as one of the world's "momentum markets" for digital infrastructure due to its growing appeal to hyperscalers and international investors. Abu Dhabi alone is described as a "stronghold for Microsoft", thanks to its $1.5 billion investment in G42 to accelerate AI development - a move the report says is positioning the UAE as a key player in the global AI and cloud computing sectors.
And, the UAE is making sure to grab its slice of that momentum. BlackRock, Microsoft, and Abu Dhabi-backed MGX have jointly launched a $100 billion AI Infrastructure Partnership, with advisory support from Nvidia. Oracle is scaling up too, with plans to multiply its investment fivefold in Abu Dhabi and deepen its work on sovereign cloud solutions in partnership with telecom provider du.
This isn't a short-lived boom. Knight Frank's breakdown of Abu Dhabi's infrastructure trajectory shows the emirate has gone from around 30MW of live capacity in 2018 to an estimated 210MW by the end of 2024. Meanwhile, the total supply across all stages - including under-construction and early-stage projects - is projected to exceed 450MW.
The pace of development places Abu Dhabi ahead of regional peers such as Riyadh and Cairo and puts it in the same league as more mature Asian tech hubs like Seoul and Jakarta. While still dwarfed by established giants like Virginia's Ashburn (over 6,000 MW), the UAE capital's rapid scale-up is attracting serious attention - and it's part of a broader national trajectory.
Middle East's Digital Backbone
A February report by Blackridge Research said that the UAE's data centre market is projected to reach $2.65 billion by 2029, growing at an annual rate of nearly 10%.
Abu Dhabi's AUH6 facility, developed by Khazna Data Centers in Masdar City, is singled out for its 31.8MW capacity and integration of solar power via Masdar-EDF's new PV plant, with its second phase coming online in late 2023.
Dubai is no less active. Blackridge cited Khazna's DXB2 and DXB3 sites, which together add 43MW of capacity, built through a strategic tie-up between G42 and e&. Equinix has also recently opened DX3, its largest regional data centre to date, designed to host 1,800 cabinets over two phases on the same site as its existing DX1 facility.
What's clear is that the UAE is no longer testing the waters, as these projects reflect a coordinated national push for Tier 3 standards and LEED Gold certification. With hyperscalers moving in, major builds underway, and policy support taking shape, Abu Dhabi is positioning itself to lead the Middle East's next wave of digital growth.
In February, the Ministry of Energy and Infrastructure convened the National Team for Reviewing the Impact of Data Centres on the Energy Sector, bringing together federal and emirate-level digital and energy authorities. The group is now working on everything from energy demand modelling to a federal policy framework for future builds. It's a strategic move to ensure that digital expansion goes hand in hand with sustainability and stays aligned with the UAE's clean energy ambitions.
