Research — OCTOBER 27, 2025
Coverage Initiation: Khazna set to build out the largest AI-ready hyperscale facility in UAE
By Mai Barakat
Khazna Data Center has emerged as a pivotal player in the United Arab Emirates' digital infrastructure landscape. The company's commitment to innovation is exemplified by its latest development in Ajman, UAE, a 100-MW datacenter designed to be AI-ready, set to become operational by 2026. Beyond the UAE, Khazna is extending its reach into emerging markets, collaborating with Benya Group in Egypt and EcoCloud in Kenya. This proactive expansion strategy aims to position Khazna as a leader in the Middle East and a key player in the global datacenter market, catering to the increasing demand for advanced digital infrastructure.
The Take
Khazna's commitment to innovation is highlighted by its latest project in Ajman. By positioning itself as a provider of AI-ready facilities, Khazna not only attracts hyperscalers, but also strengthens its value proposition in a competitive market landscape. Additionally, the company is strategically expanding into new markets, such as Egypt and Kenya, through partnerships that enable it to leverage local expertise while mitigating risks associated with market dependency. This diversification is crucial for helping Khazna navigate potential vulnerabilities linked to possible shifts in the UAE market.
Context
Khazna Data Centers was set up in 2012 with funding from sovereign investment firm Mubadala, which held a majority stake in the company and the land Khazna had built on. Khazna built out three wholesale datacenters in the UAE. Its flagship facility is in Meydan, Dubai; Equinix Inc. leases space in Khazna's datacenters in Dubai and Abu Dhabi. In 2020, Mubadala acquired a minority stake in Group 42 Holding (G42), an Abu Dhabi-based artificial intelligence and cloud computing company. In October 2021, G42 signed an agreement with Emirates Telecommunications Group Co. (e&) to Coverage Initiation: Khazna set to build out the largest AI-ready hyperscale facility in UAE © 2025 S&P Global Market Intelligence. All rights reserved. Merge their datacenter offerings in the UAE and in doing so Khazna acquired all of e&'s datacenters in the region. The agreement saw Khazna's footprint grow to 12 datacenters. At present, Khazna operates 25 facilities with an operating capacity of over 360 MW.
Khazna's datacenters are strategically located in specific economic zones to allow for connectivity and accessibility. Its facilities in Abu Dhabi are in Masdar City, Zayed Military City and Khalifa City, all three of which are government-designated digital transformation zones. In Dubai, Khazna operates in Meyden, Dubai Design District and Jebel Ali Village, all areas where there is a strong commerce ecosystem. Khazna's most recent development is its 100-MW datacenter in Ajman. Announced in October 2024, the facility is being built to accommodate AI workloads and is currently under construction. Offering 20 data halls of 5-MW IT capacity each, the facility will be the Khazna's largest datacenter and is expected to become operational by the second half of 2026.
Outside of the UAE, Khazna has collaborated with Benya Group to develop Egypt's' first hyperscale datacenter in Cairo's Maadi Technology Park. The facility is set to provide an initial 25 MW of IT power. In Kenya, Khazna's parent company G42 has partnered with EcoCloud to develop a geothermal-powered datacenter offering an initial capacity of 100 MW.
AUH6 spotlight
Khazna's AUH6 facility was opened in February 2024 in Abu Dhabi. The investment came as a result of existing customer demand for more wholesale availability in Abu Dhabi. IT whitespace can accommodate 31.8 MW and much like the rest of Khazna's datacenters in the country, the space is made up of modular pods. Each pod has about 2-3 MW, with some smaller capacity pods about 300- 500 kW. Each data hall at the new facility is 1,000 square meters and Khazna has rolled out six halls; two on the ground floor, three on the first floor and then some spare rooms that make up the rest of the 2 MW. The ground floor is roughly 600 square meters for whitespace and the first floor is about 800 square meters. The whole building is 20,000 square meters and the full land plot is 50,000 square meters. AUH6 can support 17.5 kW per rack but on average, Khazna runs its datacenters in Abu Dhabi at roughly 8 kW/rack. AUH6 is powered by Emirates Water and Electricity, the local utility provider, but 7.2 MW is supported by solar power. Khazna has built the facility with fan wall units, hot air containment and a slab (not raised) floor.
Competition
Khazna is the largest wholesale provider in the UAE. Its most direct competition comes from Gulf Data Hub. Gulf Data Hub was established in 2012 in Dubai, UAE, by Tarek Al Ashram, who remains the company's CEO. Prior to the establishment of Gulf Data Hub, Al Ashram was CEO of the Al Ashram Contracting group that has served as a construction company in the region since 1975. The creation of Gulf Data Hub, which focuses primarily on wholesale, was funded by a combination of private investments and partnerships with technology and telecom companies in the UAE that were looking to move off-premises and for leased datacenter space. Gulf Data Hub also received debt financing from local banking institutions. In January, Gulf Data Hub signed a partnership agreement with global investment firm KKR & Co. Inc., whereby both parties have committed to invest over $5 billion in further developing Gulf Data Hub's footprint not only in the UAE but across the Gulf Cooperation Council markets. The investment will be made through KKR's Global Infrastructure strategy team and is pending customary regulatory approvals.
SWOT Analysis
Strengths |
Weaknesses |
Khazna is the largest wholesale provider in the UAE and has a rapidly growing footprint. It has strong financial backing from Mubadala and G42, and it has established itself in the region as a provider that can build at scale and bring on facilities within a competitive time frame. |
Khazna's focus on purely wholesale has so far worked in its favor, and it can cater to hyperscalers that need speed to market and do not want to self-build. As digital transformation accelerates in the region, competitors that offer a mix of wholesale and retail could attract a broader customer base, potentially limiting Khazna's growth opportunities. |
Opportunities |
Threats |
Increasing demand for AI-ready infrastructure presents strong growth opportunities for Khazna. Expansions into Egypt and Kenya also allow for the provider to tap into emerging markets where hyperscalers are looking to create a presence without the heavy up-front investment of building facilities themselves. |
Being over-reliant on the UAE could make Khazna vulnerable to government policy changes or shifts in demand in the UAE market. Its decision to look further afield in Egypt and Kenya could also be a challenge as the dynamics of these markets are not only very different from the UAE, but also different from each other. |
Coverage Initiation: Khazna set to build out the largest AI-ready hyperscale facility in UAE © 2025 S&P Global Market Intelligence. All rights reserved. Source: 451 Research
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