Abu Dhabi data‑centre expansion accelerates with 100% carbon‑free cooling target for 2035

AI-driven demand fuels expansion

Abu Dhabi’s expanding data‑centre industry is entering a new phase of growth as demand for artificial intelligence infrastructure accelerates, putting greater pressure on operators to curb the energy, water and carbon impact of increasingly power‑intensive facilities. Hassan Alnaqbi, CEO at Khazna Data Centers, noted that the growth brings both opportunity and expectations for the sector.

Sustainability targets and progress

Elisabetta Baronio, ESG Director at Khazna Data Centers, said the company aims to reach 50% carbon‑free electricity coverage for mechanical load by 2030 and 100% by 2035. She added, “Our 2035 ambition specifically covers mechanical cooling load, rather than total electricity consumption including compute load.” Elisabetta Baronio, ESG Director at Khazna Data Centers, said, “In our 2025 ESG Report, we disclosed 246,468 MWh of grid electricity consumption associated with mechanical cooling across our fully owned facilities”. Baronio said the data centre accounted for 27% carbon‑free electricity coverage of its mechanical cooling load in 2025, achieved through onsite solar generation and certified clean‑energy instruments. She further explained, “Approximately 20% of that reported carbon‑free coverage came from on‑site solar generation, with the remaining 80% covered through certified clean‑energy instruments.” Khazna’s first standalone ESG report outlines how the company intends to expand while embedding sustainability and resource efficiency into data‑centre design and operations.

Alignment with Abu Dhabi’s digital strategy

The data‑centre expansion runs parallel to Abu Dhabi’s broader push to digitise government services and build sovereign cloud infrastructure. The emirate’s 2025–2027 Government Digital Strategy, backed by AED13 billion in investment and led by the Department of Government Enablement, aims to expand AI adoption and digitise government processes, with the goal of transforming Abu Dhabi into the world’s first fully AI‑native government by 2027. Khazna said the surge in AI computing is driving demand for additional capacity both domestically and internationally, and the growth of data centres is becoming an important part of the infrastructure underpinning these ambitions. The data‑centre build‑out is becoming a key pillar of Abu Dhabi’s push to develop an AI‑driven economy and strengthen its position as a regional digital‑infrastructure hub.

Water and energy efficiency measures

High temperatures in Abu Dhabi make cooling especially energy‑intensive, so efficient systems, cleaner power and careful water management are central to the sector’s expansion. Alnaqbi noted that the expansion also brings expectations for operators to reduce environmental impact and report progress more consistently. Khazna’s new data centres in the Gulf are designed for a power usage effectiveness (PUE) rating of 1.5 or lower, supported by modular construction, efficient cooling systems and real‑time energy monitoring. According to the company’s 2025 report, recycled water accounted for 19.8% of the water used for cooling. Looking ahead, Abu Dhabi’s next stage of data‑centre development will be measured not only by new capacity but also by operators’ ability to secure cleaner power, improve cooling efficiency and limit water use as AI workloads grow.