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  Data centres churn investments

  8 May 2025

  

   

  Global investment firm KKR appointed retired US Army general and former Central Intelligence Agency director David Petraeus as chairman of its Middle East operations in mid-April.

  The move is indicative of the region’s importance as a destination for the firm’s future investments, and capitalises on the strength of the relationships Petraeus has forged with Gulf country leaders during his years as a top US military strategist.

  KKR’s most recent commitment in the region entails acquiring a stake in UAE-based Gulf Data Hub (GDH), which operates seven data centres in the UAE and Saudi Arabia. The UAE firm plans to build additional data centre facilities in Kuwait, Qatar, Bahrain and Oman, and KKR has committed to support its $5bn expansion plan.

  “[Petraeus' appointment] is a good move on their part. It reinforces the region’s growing status and importance as a data centre investment destination, due to a significant interest in artificial intelligence (AI) deployments,” says a senior executive with an international data centre operator.

  KKR’s prior investments in the region include a partnership with Abu Dhabi National Oil Company (Adnoc) in 2019 to create Adnoc Oil Pipelines, and acquiring a portfolio of commercial aircraft from Abu Dhabi’s Etihad Airways in 2020.

  The private equity firm’s investment in GDH, however, shows only part of the picture as far as the rapidly evolving data centre investment landscape is concerned.

  In March, Abu Dhabi-based critical infrastructure-focused sovereign investor ADQ and US-headquartered power developer Energy Capital Partners agreed to establish a 50:50 partnership to build new power generation and energy infrastructure that will serve the long-term needs of data centres and industrial clusters in the US and selected other international markets.

  The two firms plan to make total capital investments of more than $25bn across 25GW-worth of projects. The combined initial capital contribution from the partners is expected to amount to $5bn.

  That announcement came a day after UAE National Security Adviser and Deputy Ruler of Abu Dhabi, Sheikh Tahnoon Bin Zayed Al-Nahyan, met with US President Donald Trump at the White House. During the meeting, the UAE is understood to have committed to a 10-year, $1.4tn investment framework for the US.

  Tech funds

  In the past 24 months, Abu Dhabi and Riyadh in particular have set up funds, sometimes in partnership with global firms, to invest in AI and data centre infrastructure, both domestically and abroad.

  Abu Dhabi’s MGX aims to build $100bn in assets under management within a few years, along with US-headquartered and Blackrock-backed Global Infrastructure Partners and Microsoft, the fund's key partners. It is part of the US’ Stargate consortium, which aims to mobilise up to $500bn to build AI infrastructure in the US over the next four years.

  In Riyadh, a $100bn AI initiative known as Project Transcendence is expected to invest in data centres, technology startups and other related infrastructure for the development of AI.

  US-based Silver Lake announced in March 2025 that, together with MGX, it has become a minority shareholder in state-backed, Abu Dhabi-based Khazna Data Centres, one of the region’s largest data centre operators.

  In 2023, Saudi sovereign wealth vehicle the Public Investment Fund (PIF) partnered with US-based DigitalBridge to develop data centres in Saudi Arabia and across the GCC states.

  In early 2025, Saudi Arabia-based DataVolt – which is owned by Vision Invest, a major shareholder in Saudi utility developer Acwa Power and a public-private partnership advocate – signed a preliminary agreement to build a data centre in Neom, Saudi Arabia. The $5bn facility, with an initial phase of 300MW, is the first of many such schemes that DataVolt is planning.

  Not to be outdone, the founder of Dubai-based private real estate developer Damac pledged to invest $20bn in data centre projects in several US cities earlier this year.

  And there is more to the growing – if outsized – number of bidirectional data centre-focused investment flows than meets the eye.

  Given the global AI race and mounting competition, investment decisions regarding data centres are moving from a simple, commercial focus to account for complex geopolitical considerations, according to Jessica Obeid, a partner at Dubai-headquartered New Energy Consult.

  “As the US weaponises its technological advancements, decisions to invest in US-based data centres hedge against the risks of US export controls, positioning developers in proximity to suppliers, ensuring reliable access to components.

  “Yet, this access could become costlier, driven by trade tariff wars, heightened regulations and limited access to grid infrastructure,” Obeid says.

  She adds that the GCC is quickly positioning itself as a global digital hub, driven by cost-competitive energy, advanced infrastructure and strong government backing.

  “Proximity to reliable power supply at an affordable cost, and speed in licensing processes and grid connections, are increasingly becoming strategic factors in data centre deployment – and the GCC offers that.”

  Powering AI strategies

  Almost all of the GCC states have formulated AI strategies that aim to improve operational efficiencies, create jobs and support their energy transition and net-zero initiatives.

  As a result, analysts expect the region to register double-digit annual growth in data centre construction activities in the next few years.

  In a recent update, global consultancy PwC projected that the Middle East data centre capacity could triple from 1GW in 2025 to 3.3GW in five years’ time.

  According to data from regional projects tracker MEED Projects, as of April, an estimated $12bn-worth of data centre construction projects are in the planning stage, in addition to over $820m under bid and $7bn under construction.

  Li-Chen Sim, assistant professor of civil security at Abu Dhabi’s Khalifa University, says that AI investments are, on the one hand, “all part of a carefully conceived strategy to … diversify out of a hydrocarbons-driven economy, to create new revenue streams from overseas data centres, build new growth sectors, support business requirements and offer more knowledge-based jobs as opposed to traditional manufacturing from domestic investments”.

  On the other hand, AI investments also aim to future-proof the hydrocarbons sector, which Sim expects will continue to be a significant driver of growth, revenue and exports, even as the use of renewable power grows.

  However, the ability of Gulf states to execute their plans for leveraging AI to diversify economies and create jobs –and specifically to address youth unemployment – depends on two factors, according to Obeid.

  The first factor is the ability of countries to advance their AI goals from infrastructure to capital and partnerships. The second involves the speed with which they can build up adequate human capital and a skilled workforce.

  “We will have to see how governments align their educational curricula with the AI policies and electricity infrastructure development,” she says.

  Ecosystem investment

  AI and data centre investments go beyond the facilities that house thousands of advanced graphics processing units, miles of cables and many cooling systems. To run and execute applications – particularly AI inferencing tasks – data centre facilities require a substantial amount of energy. 

  Moreover, data centres in the Middle East and North Africa region face elevated environmental risks due to the high ambient temperatures, which increase energy demand for cooling, as well as water requirements.

  This presents both a challenge and an opportunity, according to Obeid. "The GCC has an opportunity to advance innovation in energy and cooling technologies. Liquid cooling is necessary for AI workloads, and small modular reactors will become central in these data centres.” 

  In January, Abu Dhabi’s Emirates Water & Electricity Company (Ewec) appeared to show the way with a plan to build a round-the-clock solar photovoltaic (PV) plant combined with a battery energy storage system (bess) facility.

  The 5.2GW solar PV and 19 gigawatt-hour bess plant is expected to deliver renewable power as baseload, and UAE President Sheikh Mohamed Bin Zayed Bin Sultan Al-Nahyan has said that the project will help power advancements in AI and emerging technologies, and support the delivery of the UAE National AI Strategy 2031 and 2050 Net Zero initiative.

  Sim agrees that renewables combined with battery storage is part of the answer when it comes to building sustainable data centres. “Globally, data centres consume about 1% of electricity, and this figure – together with carbon emissions by data centres – is expected to grow significantly.”

  He notes that Goldman Sachs Research forecasts that global power demand from data centres will increase 50% by 2027, and 165% by the end of the decade, compared to 2023.

  “The other part of the puzzle with regard to sustainability is water consumption by data centres, particularly those in the Gulf, where high temperatures necessitate even more cooling measures.

  “Singapore, for instance, has pioneered integrated water systems that recycle treated wastewater for reuse – and this circular water model could be an option for data centres in the Gulf, instead of using expensive desalinated water,” says Sim.

  As things stand, the GCC can play a key role in the advancement of these and other technologies, along with efficiency measures and the optimisation of server utilisation through AI applications such as digital twins, says Obeid.

  This is just as well, since the region appears to be on the cusp of a boom in inbound and outbound investments that will build data centre capacity abroad and closer to home.

  “We are at a pivotal moment for innovation, where the intersection of digital advancements and energy innovation could position the GCC as a global leader, shaping the future of sustainable digital infrastructure,” concludes Obeid.

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  Jennifer Aguinaldo
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  Diriyah floats museum tender

  8 May 2025

  Saudi gigaproject developer Diriyah Company has tendered a contract to build the new iconic museum in the DG2 area of the Diriyah project in Riyadh.

  MEED understands that the tender was issued in April, with the bid submission deadline in June.

  Diriyah completed the prequalification process for the project in February this year.

  Diriyah Company is expected to award more multibillion-dollar contracts this year. In April, MEED exclusively reported that the client had awarded an estimated SR4bn ($1.1bn) contract for a utilities relocation package for the King Salman University (KSU) project located in the second phase of the Diriyah Gate development (DG2).

  The contract was awarded to the joint venture of Beijing-headquartered China Railway Construction Corporation and China Railway Construction Group Central Plain Construction Company.

  Last month, MEED also reported that the company had awarded an estimated SR5bn ($1.3bn) construction deal to build the Royal Diriyah Opera House.

  The contract was awarded to a joint venture of local firm El-Seif Engineering & Contracting, Beijing-headquartered China State Construction Engineering Corporation and Qatari firm Midmac Contracting.

  Tendering activity is also progressing on several other major schemes at Diriyah, including the King Khalid Road project, which passes through the development. The client received bids from firms in the second week of April for the main construction works on this project.

  The client is also expected to finalise the contract award shortly for the Arena Block assets in the Boulevard Southwest section in the DG2 area.

  Diriyah gigaproject

  The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh’s city centre, it will cover 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

  The company awarded several significant contracts last year, including three contracts worth over SR21bn ($5.5bn). These included an estimated $2bn contract awarded to a joint venture of El-Seif Engineering & Contracting and China State to build the North Cultural District.

  In late July, Diriyah also awarded a $2.1bn package to a joint venture of local contractor Albawani and Qatar’s Urbacon to construct assets in the Wadi Safar district of the gigaproject.

  In December, MEED reported that Diriyah Company had awarded an estimated SR5.8bn ($1.5bn) contract to local firm Nesma & Partners for its Jabal Al-Qurain Avenue cultural district, located in the northern district of the Diriyah Gate project.

  Once complete, Diriyah will have the capacity to accommodate 100,000 residents and visitors.

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838747/main.jpg

  Yasir Iqbal
• 
  Arada acquires Australian construction firm

  8 May 2025

  Sharjah-based real estate developer Arada has acquired Australian construction firm Roberts Co as part of the developer’s expansion plans for the Australian market.

  According to an official statement, Arada will invest about $20m in Roberts Co, giving it greater control over the development of its future projects in Australia and opening routes for Roberts Co to expand into new markets, including the UAE.

  “Arada is prepared to invest up to $100m in Roberts Co’s expansion into new sectors and geographies, intending to build a global presence and target annual revenues of $1bn by 2028,” the statement added.

  The acquisition also ensures uninterrupted progress across four major construction projects in Sydney, including two schools, a residential project and a children’s hospital.

  In 2024, Arada announced plans to invest $2.5bn in Australia, including major investments in Sydney.

  The firm is expected to start the construction of its projects in Australia by the end of 2025.

  Arada is the developer behind three masterplanned residential communities in Sharjah. The Aljada, Masaar and Nasma Residences communities are together valued at AED33bn.

  Spread across 24 million square feet in the Muwaileh district, the masterplan for Aljada contains residential districts, retail, hospitality, entertainment, sporting, educational and healthcare components, and a business park.

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  READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF

  Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

  Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:

  > AGENDA 1: GCC shelters from the trade wars > AGENDA 2: Gulf markets slide as US tariff shockwaves hit > AGENDA 3:  Lower oil prices raise Gulf’s fiscal pressure > SYRIA: Syria makes progress towards reunification > GCC CONTRACTORS: Contractors take on more work in 2025 > MINERALS: Saudi Arabia and Oman open up their minerals potential > INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector > INTERVIEW: Roshn outlines its procurement strategy > LEADERSHIP: Rethinking investments for a lower-carbon future > UAE REPORT: UAE is poised to weather the storm  > GULF PROJECTS INDEX: Gulf projects index inches upwards > CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025 > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s new world order

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838129/main.jpg

  Yasir Iqbal
• 
  Local firm wins next phase of DMCC Uptown project

  8 May 2025

  

   

  Dubai free zone operator Dubai Multi Commodities Centre (DMCC) has appointed local construction firm Ali & Sons as the main contractor to build the estimated AED1bn ($272m) next phase of its Uptown Dubai development.

  The second phase includes constructing two 28- and 21-storey mid-rise towers featuring approximately 67,500 square metres (sq m) of commercial space and 5,000 sq m for retail and food and beverage outlets.

  The construction work began last year when local enabling contractor Swissboring started the foundation works on the project.

  In May last year, DMCC said it had appointed the local Brewer Smith Brewer Group as the lead consultant for the design and executive architecture, interior design and structural engineering for the next two commercial towers at the development.

  Uptown Dubai, formerly known as the Burj 2020 District, is being built on a 106,000 sq m site next to Jumeirah Lakes Towers within the DMCC Free Zone. The original masterplan includes seven towers ranging in height from 60 metres to more than 500 metres. The towers will have commercial, residential and hotel space.

  DMCC awarded Belgium’s Six Construct the contract to build a mixed-use high-rise tower as part of the first phase of Uptown Dubai in 2019. The 78-storey tower is about 300 metres tall and has a total gross floor area of about 103,650 sq m.

  In June, DMCC appointed UK-based Mace to provide building operations management services for its 81-storey Uptown Tower in Dubai. The 340-metre-tall tower will feature a 188-key, five-star hotel, branded residences, commercial office spaces and restaurants.  

  ---

  READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF

  Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

  Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:

  > AGENDA 1: GCC shelters from the trade wars > AGENDA 2: Gulf markets slide as US tariff shockwaves hit > AGENDA 3:  Lower oil prices raise Gulf’s fiscal pressure > SYRIA: Syria makes progress towards reunification > GCC CONTRACTORS: Contractors take on more work in 2025 > MINERALS: Saudi Arabia and Oman open up their minerals potential > INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector > INTERVIEW: Roshn outlines its procurement strategy > LEADERSHIP: Rethinking investments for a lower-carbon future > UAE REPORT: UAE is poised to weather the storm  > GULF PROJECTS INDEX: Gulf projects index inches upwards > CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025 > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s new world order

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13838057/main.jpg

  Yasir Iqbal
• 
  Omniyat appoints Vela and Vela Viento contractor

  7 May 2025

  Register for MEED’s 14-day trial access 

  Dubai-based private real estate developer Omniyat has appointed Abu Dhabi-based Arabian Construction Company (ACC) as the main contractor for its Vela and Vela Viento projects.

  The Vela by Omniyat project is a 31-storey residential building, whereas Vela Viento is a 44-storey building. Both are located in the Business Bay area of Dubai.

  Dubai-based firm Rice Perry Ellis is the project consultant.

  The enabling works on both projects are under way and are being undertaken by the local International Foundations Group.

  The award marks another major contract win for ACC in Dubai. Last month, the firm also won an estimated AED2bn contract ($544m) from Dubai-based real estate developer Meeras for the Design Quarter residential project in the Dubai design district.

  The development is spread across three buildings, offering over 558 residential apartments.

  The construction works are expected to be completed in 2027.

  Dubai’s heightened real estate activity is in line with GlobalData’s forecast that the construction industry will register annual growth of 3.9% in 2025-27, supported by investments in infrastructure, renewable energy, oil and gas, housing, industrial and tourism projects. 

  The residential construction sector is expected to record an annual average growth rate of 2.7% in 2025-28, supported by private investments in the residential housing sector, along with government initiatives to meet rising housing demand.

  

  ---

  READ THE MAY 2025 MEED BUSINESS REVIEW – click here to view PDF

  Gulf hunkers down as US tariffs let fly; Abu Dhabi looks to secure its long-term economic prosperity; Nesma stays on top as China State moves up in 2025 GCC contractor ranking

  Distributed to senior decision-makers in the region and around the world, the May 2025 edition of MEED Business Review includes:

  > AGENDA 1: GCC shelters from the trade wars > AGENDA 2: Gulf markets slide as US tariff shockwaves hit > AGENDA 3:  Lower oil prices raise Gulf’s fiscal pressure > SYRIA: Syria makes progress towards reunification > GCC CONTRACTORS: Contractors take on more work in 2025 > MINERALS: Saudi Arabia and Oman open up their minerals potential > INTERVIEW: CCED seeks growth in Oman’s hydrocarbons sector > INTERVIEW: Roshn outlines its procurement strategy > LEADERSHIP: Rethinking investments for a lower-carbon future > UAE REPORT: UAE is poised to weather the storm  > GULF PROJECTS INDEX: Gulf projects index inches upwards > CONTRACT AWARDS: Region records $70.3bn of deal signings in Q1 2025 > ECONOMIC DATA: Data drives regional projects > OPINION: Trump’s new world order

  To see previous issues of MEED Business Review, please click here

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13831389/main0710.jpeg

  Yasir Iqbal