Since its entrance into the residential real estate market, Damac Properties’ foray into the data centre industry is a logical next step.
According to Hussain Sajwani, founder and CEO of Damac Properties, data centre development was a “natural extension of the business” given that the global data centre market will grow to around US$517 billion by 2030, according to Allied Market Research.
The company’s data centre subsidiary, formerly known as Edgenex, was launched in 2021 to “disrupt the data centre market”.
However, it has since announced a rebrand into Damac Data Centres, aligning the subsidiary with the wider known brand.
Since its inception, Sajwani says that Damac has been able to look for talent that possess skills that match the “hyperscale era”.
“As we’ve developed our team, we’ve looked at energy efficiency, sustainability and partner management and development as core competencies,” he said.
“We’ve hired highly skilled data centre experts that are building facilities for the future.
Expansion
Damac Data Centres will now expand further, with a profound focus on the Middle East, Asia and Africa.
This begins in Saudi Arabia, where the company is investing US$600 million as part of its US$1 billion development strategy that seeks to serve emerging demand across the aforementioned regions.
Sites selected in Saudi Arabia include Damman and Riyadh, which are key local and international hubs “with tremendous growth potential,” according to Sajwani.
“Saudi is a big economy, it has a strong leader with a clear vision, and he is driving the economy and the country to the next level,” he added.
“It is a country we have been doing business in for the last 37 years now, so we know it inside out.”
Additionally, Sajwani believes there is tremendous potential in Africa and Southeast Asia.
“Both regions have huge potential for digital adoption and digital transformation across vertical industries,” he said.
According to McKinsey Research, Covid-19 brought about ten years of technological change to Asia, meaning there is vast growth potential on the continent.
Africa, meanwhile, boasts a digital economy that is worth US$115 billion, but only 33% of people on the continent use the internet, compared to the global average of 66% according to the International Telecommunications Union (ITU).
Much of the digital development in Africa has been focused on Nigeria, Kenya, Egypt and South Africa, but Sajwani reminds us that there are 54 countries on the continent that are equally poised for growth.
Future plans
Damac Data Centres continues to develop new sites across a global footprint, while assessing where it should go next.
Sajwani says the company will make strategic decisions about where to develop its next facilities in order to ensure that it delivers both for customers and local communities.
Success for the company in its data centre venture will be multiple facilities in unique markets that have long-tenants that land and expand with the company.
