Abu Dhabi data-centre expansion accelerates as 100% carbon-free cooling power set as 2035 goal

Abu Dhabi's burgeoning data centre industry is ramping up growth as demand for AI infrastructure surges, prompting operators to address the environmental impact of increasingly energy-intensive facilities. Elisabetta Baronio, ESG Director at Khazna Data Centers, aims to achieve 50% carbon-free electricity coverage for mechanical load by 2030, rising to 100% by 2035.

This focus specifically targets mechanical cooling load, excluding total electricity consumption involving compute tasks. Khazna Data Centers CEO Hassan Alnaqbi notes growing demand for data centre capacity, fueled by the rapid acceleration of AI. This growth presents opportunities but also sets expectations for Abu Dhabi's digitization efforts.

The emirate's 2025-2027 Government Digital Strategy, backed by AED13 billion in investment, seeks to expand AI adoption and digitize government processes to establish the world's first AI-native government by 2027. The expansion of data centres becomes a crucial component in supporting these digital transformation ambitions. Khazna highlights that the rise in AI computing drives increased demand for capacity both locally and internationally.

In its first standalone environmental, social, and governance (ESG) report, the company outlined its plans to incorporate sustainability and resource efficiency into data centre design and operations. The data center build-out is a cornerstone of Abu Dhabi's effort to build an AI-driven economy and solidify its role as a regional digital infrastructure hub.

However, the city's hot climate amplifies the energy demands of cooling systems, emphasizing the need for efficient technologies, cleaner power sources, and careful water management in the sector's expansion. As of 2025, Khazna's data centre achieved 27% carbon-free electricity coverage for its mechanical cooling load through onsite solar generation and certified clean energy instruments.

On-site solar contributed to approximately 20% of the reported carbon-free coverage, while the remaining 80% was sourced from certified clean energy instruments. The company's future data centres in the Gulf region are engineered for energy efficiency, boasting a power usage effectiveness (PUE) rating of 1.5 or lower. This efficiency is backed by modular construction, advanced cooling systems, and real-time energy monitoring.

By 2025, recycled water accounted for 19.8% of the water used for cooling purposes, as reported by Khazna. Looking forward, Abu Dhabi's data centre development will be judged not only by the increase in capacity but also by the sector's ability to secure cleaner power, enhance cooling efficiency, and minimize water usage as AI workloads continue to expand.

Abu Dhabi has committed a staggering 250 billion dirhams in investment to fuel the next decade of growth, positioning the economy for further development.