Khazna to double cloud capacity as Amazon Web Services enters region

Mubadala-owned provider to benefit as regional entities move business to the cloud

Khazna chief executive Hassan Al Naqbi. Reem Mohammed / The National

Abu Dhabi-based Khazna Data Centers will double its server capacity by end-2019, tapping increasing demand for cloud-based services among local businesses and government entities, as industry leader Amazon Web Services plans its first regional data centres.

Khazna, which is majority-owned by Abu Dhabi’s Mubadala Investment Company, said its expansion will cover a total built-up area of around 31,000 square meters across the company’s existing facilities in Abu Dhabi and Dubai. The combined facilities will deliver over 24 megawatt (MW) of IT load once complete, the company said.

“Outsourcing data centre capabilities allows companies to focus on their core operations. Our wholesale model provides our customers with the benefits of both renting and owning their data centre space,” said Khazna chief executive Hassan Al Naqbi.

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“The expansion of our facilities is an indicator that our clients are looking towards long-term growth strategies in the region.”

Demand for cloud services in the Mena region is outpacing global growth rates, according to industry analysts Gartner.

The market for cloud computing services in the region is expected to grow by 22.2 per cent to $1.2 billion in 2017, Gartner forecasts. By contrast, global demand is predicted to grow 18 per cent to $246.8bn over the same period.

Khazna’s announcement comes a week after Amazon Web Services (AWS), the world’s largest cloud services provider, said it would launch its first physical data services in the region, located in Bahrain, by early-2019.

Telecoms operator du last week said that it had joined AWS's partner network, enabling the telco's enterprise customers to gain access to AWS's cloud solutions.