The Emirates Integrated Telecommunications Company PJSC (du) will be investing in a $544.54 million hyperscale data center deal with Microsoft who will be its main tenant.
The hyperscale datacenter capacity will be delivered in tranches, du said in a statement. Hyperscale centers are large facilities that are mainly used to provide data storage and cloud computing services to businesses at scale.
The deal, made during Dubai AI Week, “represents a pivotal leap in our strategic goal to revolutionize the digital ecosystem of the UAE”, Fahad Al Hassawi, CEO of du, said.
Currently, du operates five data centers across the United Arab Emirates, which has been heavily investing to become a global hub for AI outside of the US.
Almost 150 MW of additional power capacity is expected to be added by the end of 2025. The existing data center capacity in UAE is over 250 MW, while the upcoming capacity in the region is expected to be around 500 MW. Around $1.5 billion in new investments is expected to flow into upcoming data centers in UAE by 2027.
The datacenters will be used to host AI computing power, digital assets, Blockchain solutions, IOT, and other technology solutions. Beyond the UAE, the The MENA data center market is experiencing rapid growth, with 4.5 GW of additional capacity expected by 2027, driven by a $12 billion investment surge. Saudi Arabia dominates the market, accounting for 50% of upcoming power capacity.
