UAE government eyes federal data centre policy
3 February 2025
A UAE national team has been formed to assess the impact of data centres on the domestic energy sector and work on developing a federal policy aimed at regulating the operation of local data centres.
The UAE Ministry of Energy and Infrastructure (MoEI)-attached national team held its first meeting in Dubai, Emirates News Agency (Wam) reported on 3 February.
At its inaugural meeting, the National Team for Reviewing the Impact of Data Centres on the Energy Sector, explored the development of data centres in the UAE and their influence on the local energy sector.
The report added: "It also highlighted the challenges facing data centres, ways to make them more sustainable, and the importance of adopting global best practices to ensure efficient operation of these centres".
Related read: AI chip restriction may slow down GCC data centre boom
The team is tasked with a"nalysing and reviewing the impact of data centres on energy demand, evaluating the local market and projected economic return for this key sector, identifying all data centres in the country and classifying them according to specific standards".
The team will also conduct a geographical study of the distribution of current and future data centres to ensure optimal infrastructure distribution, perform benchmark comparisons to review global best practices in data centres, and work on developing a federal policy aimed at regulating the operation of local data centres.
Sharif Al-Olama, Undersecretary for Energy and Petroleum Affairs at MoEI and Saif Ghubash, assistant undersecretary for Petroleum, Gas, and Mineral Resources at MoEI participated in the meeting, along with key team members from various ministries including the Ministry of Industry and Advanced Technology, the Ministry of Climate Change and Environment, the Telecommunications and Digital Government Regulatory Authority, the Artificial Intelligence, Digital Economy, and Remote Work Applications Office, among others.
Related read: AI underpins 5GW Abu Dhabi solar project
During the meeting, Al-Olama underscored the importance of collaboration among member entities to achieve the team's objectives, including adopting innovative solutions to reduce energy consumption and enhancing the operational efficiency of data centres.
He added that the formation of the National Team is part of the country's strategic directions towards digital transformation and enhancing sustainability in the energy sector.
He emphasised the need to develop innovative solutions to ensure a balance between the demands of technological development and the sustainability of energy resources in alignment with national goals.
Al-Olama also highlighted the importance of establishing a comprehensive framework that includes analytical studies and clear recommendations based on accurate data, which will contribute to making strategic decisions capable of achieving the country's energy goals, particularly in clean and renewable energy.
Close to $2bn worth of data centre projects are under construction in the UAE, according to latest available MEED Projects data.
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 across the GCC states.
Photo credit: Wam
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Chinese engineering, procurement and construction (EPC) contractor Harbin Electric International has awarded Germany’s Siemens Energy a contract to supply combined-cycle gas turbine (CCGT) units for the Rumah 2 and Nairiyah 2 independent power projects (IPPs) in Saudi Arabia.
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Chinese builders go global
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Commentary
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EditorRead the March MEED Business Review
It is difficult to fathom the scale of growth experienced by China’s construction sector over the past 20 years. Since 2004, it has grown by over 800%, with a compound annual growth rate of 11% to reach an estimated value of $4.5tn.
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