Dubai-based Damac invests $1 billion in data centre development

The Damac Data Centre will be fully operational with locations in Riyadh and Dammam by the close of 2023.

The Damac Group is planning to invest $1 billion in the data center industry throughout the Middle East, Asia, and Africa, according to its chairman, Hussain Sajwani. Sajwani stated that the company is eager to enter the information technology sector due to increasing demand from tech-savvy customers in the region. The company will be investing $600 million in Saudi Arabia as part of its $1 billion data center strategy aimed at meeting growing demand in Africa, Asia, and the Middle East.

Damac has accelerated its data center rollouts in response to local and international demand, with customers finalizing agreements to secure all available capacity. The goal is to develop data centers in markets where investment in digital infrastructure can have the maximum impact on local economies, businesses, and end-users. The Damac Data Center is expected to be operational in Riyadh and Dammam by the end of 2023, with 20 megawatts of IT capacity currently under construction in Saudi Arabia. The facilities will each have 5 megawatts of IT capacity by the fourth quarter of 2023, with a full 55 megawatts of IT capacity available by 2025.

The investment in data center development is part of the company's strategy to diversify its business beyond real estate and into industries such as hospitality, logistics, fashion and retail, and capital markets. Sajwani noted that data centers are an extension of the real estate sector, with added technology and MEP engineering. The company aims for a 20-30% profit rate from data centers and is in a period of digital transition, constantly seeking new and technologically advanced industries and investments to add to its portfolio.

Sajwani believes the future of the IT sector is promising, with technology evolving at a rapid pace to meet rising demand from the tech-savvy population. He said that Saudi Arabia has a young, digitally savvy population and a lot to offer in terms of digital innovation and smart cities, and the company looks forward to supporting the growth of its digital economy. Through its facilities, the Damac Group aims to offer local diversity and quick access to subsea cable systems serving regional and global needs.