meed-logo

line1 line2 line3
SIGN IN / REGISTER

Abu Dhabi plans estimated 10GW data centre capacity

4 February 2025

 

Abu Dhabi is planning to invest in data centres with a total combined IT load capacity equivalent to an estimated 10,000MW.

According to industry sources, the locations that are being considered are in Abu Dhabi's Dhafra region, previously known as the Western or Al-Gharbia region, including one close to the Barakah nuclear power plant.

In addition to the nuclear power plant, which has a total nameplate capacity of 5,600MW, Abu Dhabi's second utility-scale solar photovoltaic (PV) independent power project is located in Al-Dhafra.

Abu Dhabi National Energy Company (Taqa) is also procuring an open-cycle gas turbine (OCGT) plant to be located in the region. The Al-Dhafra OCGT plant is being tendered on a fast-track basis and is expected to have an installed capacity of 1,000MW-1,100MW.

State utility offtaker Emirates Water & Electricity Company and Abu Dhabi Future Energy Company (Masdar) have yet to disclose the locations for the gigawatt-scale solar PV and battery energy storage system (bess) plants that they are planning to develop as part of the UAE's national net-zero target and artificial intelligence (AI) strategy.

The project comprises 5,200MW solar PV and 19 gigawatt-hour (GWh) bess plants that are expected to supply 1,000MW of round-the-clock renewable power.     

Experts have advised colocating data hyperscale centres, particularly those designed for training AI large-language models that have an electrical output similar to small towns or cities, with power generation sources.

This helps bypass complex and time-consuming grid connection upgrades and approvals processes and minimises energy waste.

Data centres designed for inferencing AI models, however, need to be built close to load centres or cities for improved latency.  

"Lots of data centre project activity in Abu Dhabi at the moment," said a senior technical consultant, who also cautions there might be duplications in terms of these "concept projects".

Karen Young, senior research scholar at Columbia University’s Centre on Global Energy Policy, also observes the uptick in project activity, as well as in policies directly related to AI and data centres in the UAE.

"It's a lot to keep track of, and the new doubt that we may be able to do supercomputing with less power and investment, and cheaper inputs, makes the race for energy infrastructure and data centre placement slightly more risky," she tells MEED.

Related read: DeepSeek complicates regional data centre choices

"All the same, the UAE has made a strategic decision to lead the space and it changes the global landscape of where this advances and which countries have advantages to control it."

GCC data centre market

Over $10.6bn-worth of data centres, some catering to hyperscalers such as Amazon Web Services and Microsoft, are planned to be developed and built in the GCC states, according to the latest available data from regional projects tracker MEED Projects.

This is a conservative estimate, given potential investments such as the $5bn planned between US asset investment firm KKR and the UAE-based Gulf Data Hub.

It also excludes spending by government entities to develop AI capabilities in defence, security, healthcare and energy.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13360347/main1606.jpg
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Kurdistan plant to deploy GE Vernova technology

    30 April 2025

    The 1,250 MW Bazyan power plant in the Iraqi Kurdistan region will deploy the US-based GE Vernova's first upgrade of its Advanced Gas Proven (AGP) technology that runs on its 9E.03 gas turbine fleet.

    Known as AGP Xpand, the technology can increase their 9E.03 gas turbines' output by up to approximately 7%, with an approximately 1% incremental efficiency, GE Vernova said.

    Taurus Energy, a portfolio company of Onex Group, operated the Bazyan power plant. Onex Group is a private energy group with a portfolio of power generation, utilities, energy trading, shipping and refining companies.

    Qubad Talabani, deputy prime minister of the Kurdistan Regional Government,  Kamal Mohammad Salih Khalil, Minister of Electricity in the Kurdistan Regional Government and Steven Bitner, consul general at the US Consulate General Erbil, along with other senior government officials and local business leaders witnessed the signing of the agreement held in Sulaymaniyah.

    In addition to increasing the gas turbines' efficiency, the technology enables exhaust energy to increase by up to 2.6% to produce more steam or power, for combined heat and power (CHP) plants or combined cycle plants, like the Bazyan power plant.

    Taurus is welcoming this technology, which could modernize its

    The Bazyan power plant is powered by

    Four GE Vernova 9E.03 and two 9F.04 gas turbines power the  Basyan power plant, which uses natural gas as the primary fuel source and light fuel oil as backup fuel.

    Taurus designed and engineered the power plant for baseload operations with an expected lifetime of 25-30 years.

    The AGP XPAND upgrade is expected to enhance the current capacity and deliver additional, much-needed electricity to the Kurdistan Region as well as nearby cities and governorates such as Mosul and Salahaddin.

    In addition, GE Vernova and Taurus Energy signed a new 17-year long-term service agreement covering four GE Vernova’s 9E units with the first 9E rotor life extension package in Iraq.

    “By utilising Kurdistan Region’s natural gas resources and power generation capacity, we are laying the foundation to create an energy hub," said Saad Tayeb Hasan, Onex founder and chairman.

    "Through projects like Bazyan, we can contribute to the efforts to meet local energy needs as well as transmit additional power to other parts of the country."

    According to GE Vernova, it has added more than 19GW of power capacity in Iraq since 2011, built and energised more than 30 substations since 2015, and mobilised over $3bn in financing for energy projects since 2015. 

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13783196/main.jpg
    Jennifer Aguinaldo
  • Algeria holds talks with Chinese nuclear firm head

    30 April 2025

    Algerian State Minister and Energy, Mines and Renewable Energies MInister, Mohamed Arkab, met with China National Nuclear Corporation (CNNC) president, Wang Yongge in Algiers on 26 April.

    According to a local media report citing a ministry statement, the two reviewed the ongoing cooperation between Algeria's Commissariat for Atomic Energy (Comena) and CNNC,  focusing on the peaceful use of nuclear energy, its medical applications, and prospects for future development.

    They also assessed the progress of the previously established specialised working group tasked with preparing and launching a radioactive isotopes production project in Algeria.

    This project holds strategic importance in supporting the national healthcare sector, particularly in diagnosis and radiation therapy, with a special emphasis on cancer treatment.

    MEED understands that Yongge expressed his firm's "readiness" to support Algeria in implementing the radioactive isotope production project.

    MEED reported in May 2013 that Algeria was planning to build its first nuclear power plant by 2025 as part of efforts to meet the rapidly growing demand for electricity.

    “We plan to have our first nuclear power plant in 2025 and we are in the process of working on this project,” Youcef Yousfi, the country’s Energy and Mines Minister at the time, was quoted in the Algerian state media outlet Algerie Presse Service (APS).

     Algeria has uranium reserves of 29,000 tonnes, which is enough to supply two 1,000MW nuclear power plants for 60 years, said Yousfi.

    That project has yet to move beyond the planning stage.

    Relations between China and Algeria have become increasingly close over recent years.

    In November 2023, China’s Chery Automobile Company said it plans to build a car plant in the province of Bordj Bou Arreridj with a preliminary capacity of 24,000 units a year.

    In July the same year, President Xi Jinping held talks with Algerian President Abdelmadjid Tebboune and agreed to increase economic cooperation between the two countries.

    The two leaders said they would deepen cooperation in sectors including infrastructure, petrochemicals, mining and agriculture.

    They also said that they would expand cooperation in high-tech fields including aerospace, nuclear energy and renewable energy to nurture new growth drivers of cooperation.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13775261/main.jpg
    Jennifer Aguinaldo
  • Oxagon discloses capacity of data centre phase

    29 April 2025

    The region's first planned net-zero and artificial intelligence (AI)-powered data centre project in Oxagon, the industrial cluster of Saudi gigaproject Neom, will have an initial capacity of 300MW.  

    The first phase of the data centre facility, which local data centre developer DataVolt will own and operate, is expected to begin operations in 2028.

    "Over time, the data centre’s total capacity is expected to reach 1.5GW, supporting anticipated local and global demand," Oxagon announced.

    It added that the projected output will place the kingdom among a "select group of countries boasting operational capacities of 1GW or more, comparable to those in the US, China, Japan, Australia and India".

    The project is estimated to require an investment of several billion dollars.

    The initial 300MW facility’s modular design will ensure scalability to meet future demand in terms of information technology infrastructure, rack power density and cooling systems, said Oxagon. 

    The DataVolt facility will be located on a 350,000 square-metre area and will ultimately be powered by renewable energy, primarily from solar and wind sources within the Neom region.

    The current plan entails deploying large-scale battery storage for system stability and gas turbines for redundancy, "enabling up to 48 hours of autonomous operation with green hydrogen fuel, if needed".

    According to Oxagon, these energy solutions will enable the facility to meet the enormous power demands of AI workloads with Tier 3 levels of redundancy and availability while maintaining net-zero emissions during operations.

    Founded in 2023, DataVolt has previously announced a plan to invest $5bn in developing data centres in Saudi Arabia, without specifying potential locations.

    DataVolt is a wholly owned subsidiary of Saudi public-private partnership-focused developer and investor Vision Invest.

    According to the International Energy Agency, data centres currently consume 1%-1.3% of global electricity demand. Advancements in generative AI mean that power consumption is expected to grow exponentially in the next decade.

    Photo credit: Oxagon

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13775650/main.jpeg
    Jennifer Aguinaldo
  • Abu Dhabi reaches Shuweihat 1 plant conversion deal

    29 April 2025

    Abu Dhabi state offtaker and utility Emirates Water & Electricity Company (Ewec) has signed a new power purchase agreement (PPA) for the conversion of the existing Shuweihat 1 (S1) independent water and power project (IWPP) into an independent power plant (IPP).

    Under the new PPA, S1 will be converted to a natural gas-fired open-cycle power plant only, providing up to 1.1GW of "flexible" reserve supply for 15 years, with commercial operations beginning from 2027, Ewec said.

    It added: "S1 will be reconfigured from a cogeneration power and water desalination facility to a power plant only, providing flexible reserve supply to support the increased integration of renewable and clean energy sources."

    MEED reported in June 2023 that Ewec intended to seek interest from developers for the potential conversion or extension of the S1 IWPP as well as another plant, Taweelah A1.

    A team of France's Engie and Japan's Sumitomo won the contract to develop the S1 IWPP in 2001. The project reached commercial operations in 2004 under a 20-year PPA.

    Engie and Sumitomo each own a 20% interest in Shuweihat CMS International, the project company, while Abu Dhabi National Energy Company (Taqa) owns 60%.

    The plant's desalination units ran on multi-stage flash and multi-effect distillation technologies.

    Mohamed Al-Marzooqi, Ewec's chief asset development and management officer, said: “By strategically reconfiguring this power plant we are maximising the efficient use of existing infrastructure to deliver a reliable, flexible power supply while reducing carbon emissions associated with the project."

    He added that using natural gas as a "flexible transition fuel" enables the accelerated integration of renewable and clean energy projects, such as solar and wind, into the energy mix, and preserves resources.

    Located approximately 250 kilometres southwest of the city of Abu Dhabi, the Shuweihat IWPP features a 1,500MW combined-cycle power plant, a 120-million-gallon-a-day desalination plant, 220 kilovolt (kV) and 400 kV power substations and a 188-million-gallon-a-day water pumping station.

    At the time of commissioning in 2024, the plant was the largest IWPP ever procured.

    Germany's Siemens Energy executed the $895m power generation package and Italy's Fisia Italimpianti undertook the $500m contract for the plant's desalination package 24 years ago.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13774242/main0632.jpg
    Jennifer Aguinaldo
  • Unec wins $200m Dubai Tilal Al-Ghaf villas deal

    28 April 2025

    Register for MEED’s 14-day trial access 

    Local firm United Engineering Construction Company (Unec) has won a AED736m ($200m) contract from local real estate company Majid Al-Futtaim Development to construct its Plagette 32 and Amara residential developments in the Tilal Al-Ghaf community in Dubai.

    The scope of the contract covers the construction works on about 116 villas in the Amara cluster and 32 mansions in the Plagette 32 residential development.

    The contract award follows Majid Al-Futtaim Development's appointment of Unec in January last year for the construction of 130 villas across a 2 square-kilometre neighbourhood.

    The construction of both clusters has begun and is expected to be completed by the second half of 2026.

    Unec was also awarded a contract in 2021 to deliver more than 900 three- and four-bedroom townhouses as part of the Elan project at Tilal Al-Ghaf.

    The 300-hectare Tilal Al-Ghaf project will be developed in phases over 10 years and will feature 6,500 freehold apartments, townhouses, bungalows and luxury villas upon completion in 2027.

    Earlier in April, MEED reported that Dubai-based firm Dutco Construction had won a AED1.5bn ($427m) contract from Majid Al-Futtaim Development to construct 109 mansions in the Tilal Al-Ghaf community.

    The project, known as Serenity Mansions, was designed by South African architectural firm Saota and Lebanon’s Nabil Gholam.

    According to the official statement, Dutco’s scope of work comprises the construction of the Serenity Mansions, including interior fitout, public realm landscaping, gatehouses, ancillary buildings and infrastructure works.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/13768229/main0819.jpg
    Yasir Iqbal