Dubai Internet City and Khazna Data Centres to build two data storage units

Technology services will offer long-term growth benefits to partners and businesses in Dubai

Dubai Internet City is the region’s largest hub for technology companies and talent. Photo: DIC

Dubai Internet City has teamed up with Khazna Data Centres, one of the largest data centre providers in the Middle East and North Africa, to establish two data storage centres in Dubai that will support enterprises by enabling the integration of technology across business functions.

The services will feature data centre pods designed by Khazna, which allow the rapid scaling of operations when required, offering partners long-term growth benefits, the companies said on Tuesday.

Businesses involved in 5G, smart city projects and cloud computing can also leverage the technology

“Building data centres and enhancing the overall technological infrastructure plays a key role in providing an investment-friendly environment," said Ammar Al Malik, managing director of Dubai Internet City.

"This agreement marks the next chapter in our commitment to supporting widespread digital transformation to increase our economic competitiveness globally well into the future," he said.

Demand for data centres has risen in recent years as the volume of digital data generated in the region surges exponentially. The UAE government is also carrying out a major programme of transforming the country into a smart nation, which requires secure cloud infrastructure and data storage across all industries.

The Mena region's data centre market is projected to grow at a compound annual growth rate of about 8 per cent and hit $5 billion by the end of 2026, a report by Arizton Advisory and Intelligence shows.

Rapid investments in new-generation 5G technology and its expansion across the region have led to the generation of a substantial amount of data, which, in turn, has further increased investments in data centres across the Mena region.

The UAE is one of the preferred data centre locations in Mena, attracting investments of about four co-location data centre facilities in 2020, data provider Research and Markets has said.

In October, Etisalat and artificial intelligence services provider G42 signed a binding agreement to merge their data centre services to create the UAE's largest data centre provider.

It will combine 12 data centres by the Abu Dhabi-based companies and will operate under Khazna.

Etisalat has its SmartHub data centres in Dubai and Fujairah while Emirates Integrated Telecommunications Company, also known as du, began operations at its two data centres in Abu Dhabi and Dubai in September.

Global technology companies have also launched data centres in the UAE.

Microsoft opened two data centres, one each in Abu Dhabi and Dubai, in 2019 while Amazon Web Services, the world's largest cloud storage service provider, has said it will open three data centres in the UAE in the first half of 2022.

As digital adoption sweeps through the greater Mena region, the opening of data privacy and storage centres can enhance business activity. Wholesale storage providers such as Khazna can play a key role in catering to the recording, movement and security of increasingly large amounts of information.

“The partnership between Khazna and Dubai Internet City will further support the UAE’s digital ecosystem, with technology businesses such as cloud computing operators able to achieve the level of connectivity they need to more effectively deliver services to partners, customers and employees," said Hassan Al Naqbi, chief executive of Khazna Data Centres.