Khazna's Quiet Rise as the UAE's AI Infrastructure Leader

Innovation: The invisible backbone of the UAE's AI ambitions

19 September 2025 * Dubai, United Arab Emirates

Khazna controls over 70% of the UAE's operational data center capacity. Its sites host the servers of Google, Amazon, and Microsoft, and the company now has a footprint reaching Turkey, France, Italy, and Kenya.

Started in 2014 with only 2 MW, Khazna has grown into the region's AI infrastructure leader. Its facilities today support an electrical load comparable to what 200,000 households consume, acting as the secure, cooled, and connected "digital warehouses" that keep streaming, cloud, and AI services online.

From niche developer to national infrastructure

Khazna's rise mirrors the UAE's move to diversify beyond hydrocarbons. The company's mandate is straightforward: build at scale, deliver fast, and support AI-grade density.

New sites include a 32 MW build in Masdar City and a 100 MW GPU-focused campus in Ajman. These projects are less about floor area and more about megawatts, fiber routes, and integrated cooling that can handle extreme heat loads.

Why this matters for real estate and construction

• Data centers have become a core asset class. Deals follow megawatts, latency, and uptime guarantees, not just location and shell specs.
• AI density changes everything: rack loads of 30-80 kW are common, with different structural, electrical, and mechanical requirements.
• Utility interconnects, multi-carrier fiber, and cooling water access now drive site feasibility and schedule risk.
• Speed to revenue demands modularity, repeatable design blocks, and early procurement of long-lead equipment.

The new heat reality: GPUs rewrite mechanical design

High-density GPUs generate intense heat. Traditional air-based systems hit limits at these loads.

Khazna is deploying direct liquid cooling and immersion solutions that remove up to 10x more heat with lower energy use. Its Ajman campus combines closed-loop liquid systems with chip-to-chip cooling to improve efficiency and stabilize performance at high density.

For teams scoping AI-ready builds, plan for liquid-ready rooms, rear-door heat exchangers, higher floor loading, and service corridors for coolant distribution. Standards such as the Uptime Institute Tier framework remain useful for reliability planning, while vendor guidance on liquid cooling-see NVIDIA's reference approaches-helps de-risk integration.

Standardization by partnership

Backed by G42, Khazna leverages partnerships with U.S. technology firms to standardize "AI factory" designs. Using certified templates shortens design cycles, streamlines commissioning, and reduces interface risk across electrical, mechanical, and IT stacks.

Growth beyond the Gulf

Projects are active in Turkey and Saudi Arabia, with identified sites in France and Italy. In Turkey, an Ankara facility is structured to serve local demand and meet data sovereignty needs in an underserved hyperscale market.

In Africa, Kenya stands out for renewable potential and improving connectivity. Khazna prefers to partner with local firms to accelerate delivery and fit into national digital strategies.

Market signals developers should watch

• Cloud infrastructure spend in the UAE is projected to grow about 11% annually through 2029.
• Localization rules in banking and health care are driving steady on-prem growth at a five-year CAGR near 4%.
• Hyperscalers are building closer to end users to reduce latency, favoring markets with supportive regulation and fast permitting.

Constraints that will hit your timeline

• AI hardware supply: Access to new GPUs and AI servers remains tight and can stall fit-outs.
• Skilled labor: Shortages in critical fields-controls, commissioning, high-voltage, and liquid cooling-are global.
• Climate and sustainability: Desert conditions raise thermal design complexity and water stewardship requirements.
• Geopolitics: Regional tensions add uncertainty to long-term planning and capital allocation.
• Utilities and fiber: Substation builds, transformers, switchgear, and diverse long-haul routes often dictate the true critical path.

Build faster without cutting corners

• Adopt repeatable blocks: 4-8 MW modules with standardized electrical rooms, cooling skids, and controls.
• Prefabricate and test off-site: Factory-built MEP skids and containerized plant reduce site work and rework.
• Design for density: Engineer rooms to support 30-80 kW/rack with liquid-ready distribution and adequate floor loading.
• Dual-path cooling strategy: Air-first with liquid-ready provisions, or full liquid from day one in GPU halls.
• Front-load procurement: Lock transformers, switchgear, generators, chillers, pumps, and heat exchangers early.
• Commissioning discipline: Plan Level 5 integrated systems testing, including liquid loop failover and thermal soak.
• Energy and water planning: Secure PPAs, add on-site solar where viable, and evaluate biofuels; set WUE and PUE targets by hall.
• Operations by design: Instrument for granular telemetry-tie BMS, DCIM, and asset management into a single pane.

Site selection checklist

• Utility: New or adjacent substation capacity with short interconnect distance; roadmap for step-ups to site build-out.
• Connectivity: Three or more carriers, diverse paths, and direct routes to regional IXPs and cloud on-ramps.
• Permitting: Clear process for hazardous fuel storage, water use, noise, and standby generation.
• Cooling water: Access to reclaimed water or seawater district cooling options; confirm make-up and blowdown handling.
• Resilience: Flood risk, dust mitigation (high MERV filtration), and heat-island effects addressed in design.
• Room to grow: Land bank for future phases, including set-backs for additional electrical yards and cooling plant.

Sustainability and economics

Khazna is integrating solar and biofuels to reduce environmental impact, in line with the UAE's net-zero 2050 target. Heat reuse, higher-temperature loops, and water reuse are moving from optional to expected.

At a national level, the UAE's Digital Economy Strategy aims to raise the non-oil share of GDP to more than 20% by 2031. As airports enabled tourism, large-scale data centers will do the same for digital services.

What Khazna's playbook signals

Scale, standardization, and partnerships are winning. Deliver on 12-18 month cycles, build for high-density AI loads, and lock utilities and hardware early.

For real estate and construction teams, this is a clear brief: treat megawatts, fiber, and cooling capacity as your primary design variables. Those who adapt their delivery model to these constraints will capture the next wave of demand in the UAE and beyond.