Khazna Data Centers, a prominent provider of hyperscale wholesale data centers in the Middle East and North Africa (MENA), has announced an ambitious project to construct a 100 megawatt (MW) AI-optimized data center in Ajman, United Arab Emirates (UAE). This initiative is a crucial step in Khazna’s strategy to enhance its capabilities in the rapidly evolving landscape of artificial intelligence (AI) and digital infrastructure.
Project Overview
The announcement was made during GITEX Global 2024 by Khazna’s CEO, Hassan Alnaqbi, in the presence of significant figures such as H.E. Suhail Mohammed Al Mazroui, Minister of Energy & Infrastructure, and H.E. Yousif Al Ali, CEO of Etihad Water and Electricity Company (EtihadWE). Khazna’s new facility, spanning 100,000 square meters, will feature 20 data halls, each with a capacity of 5 MW. This state-of-the-art Tier 3 data center is designed to meet the growing demands for data processing power, particularly in AI applications.
The electricity for the Ajman data center will primarily come from EtihadWE, which underscores the collaboration between major players in the region to ensure reliable energy supply for innovative technologies. The facility’s construction employs an energy-efficient, modular design, aimed at optimizing resource utilization and enhancing operational efficiency.
Previous Developments
Earlier this year, Khazna launched a 40 MW AI-ready data center in Abu Dhabi’s Masdar City and announced plans for another 30 MW facility in Mafraq, Abu Dhabi, set to become operational by mid-2026. This proactive approach indicates Khazna’s commitment to expanding its footprint in the UAE and meeting the rising demand for AI infrastructure. With 12 operational data centers and a planned total capacity of 300 MW, Khazna is poised to strengthen its leadership in the region.
Strategic Importance
The new data center represents a significant milestone not only for Khazna but also for the UAE’s broader ambition to establish itself as a leader in AI technology. The International Energy Agency predicts that power demands related to AI could double by 2026, highlighting the necessity for robust and scalable data infrastructure. By investing billions of dirhams in this facility, Khazna aims to not only enhance its operational capabilities but also support the local economy through the creation of skilled jobs in AI and technology sectors.
Hassan Alnaqbi emphasized the correlation between a nation’s readiness for AI and the proficiency of its data infrastructure. “Our new data center in Ajman has been specifically designed for the high computing power and scalability requirements of AI,” he stated. The facility’s advanced cooling techniques and energy-efficient designs are tailored to meet the unique demands of AI workloads while also promoting sustainability.
Impact on Local Economy
The construction of the Ajman data center is expected to yield significant benefits for the local economy. By generating highly skilled job opportunities, particularly in AI and technology sectors, Khazna is contributing to the UAE’s goal of fostering a knowledge-based economy. Additionally, the establishment of such a cutting-edge facility positions the UAE as an attractive investment hub for businesses focused on AI and digital innovation.
Eng. Yousif Ahmed Al Ali, CEO of EtihadWE, remarked on the strategic importance of the project, stating that providing reliable energy solutions is essential for enabling advanced technology infrastructures that align with the UAE’s strategic objectives for digital and economic growth.
Opportunities:
- AI Leadership: The construction of the AI-optimized data center positions the UAE as a frontrunner in AI and technology innovation in the region. This can attract global businesses seeking advanced data infrastructure.
- Economic Growth: The facility is set to create numerous job opportunities in technology and engineering, boosting the local economy and contributing to a skilled workforce.
- Sustainability Initiatives: By utilizing energy-efficient designs and cooling techniques, the data center aligns with global trends towards sustainability, enhancing the UAE’s reputation as a responsible player in the tech space.
- Enhanced Digital Services: With the increased computing power available, local businesses can leverage advanced AI technologies for better service delivery, innovation, and customer engagement.
Challenges:
- Infrastructure Strain: The rising demand for power due to AI and data center operations may strain existing energy infrastructures. Ensuring a sustainable and reliable energy supply will be crucial.
- Competition: As more companies enter the AI and data center space, competition will intensify, which could impact pricing and profitability for Khazna and its peers.
- Skill Gap: While the project aims to create jobs, the rapid pace of technological change may lead to a skills gap, making it essential for educational institutions to adapt their programs to meet industry needs.
- Environmental Concerns: Despite advancements in energy efficiency, data centers consume substantial energy. Continuous efforts are needed to mitigate the environmental impact of such facilities.
Khazna’s announcement of a 100 MW AI-optimized data center in Ajman marks a pivotal development in the UAE’s journey toward becoming a global leader in AI and digital infrastructure. By addressing the growing demands for AI capabilities and positioning itself as a key player in the regional market, Khazna is not only enhancing its operational capacity but also contributing to the broader economic and technological goals of the UAE.
While the project presents numerous opportunities, it also poses challenges that must be navigated thoughtfully to ensure sustainable growth and development in the age of artificial intelligence.
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tags: Artificial Intelligence, Ai, Dhaka Ai, Ai In Bangladesh, Ai In Dhaka, Future of AI, Artificial Intelligence in Bangladesh, Khazna, UAE
