DAMAC targets 4GW increase in data centre capacity by end of 2027

DAMAC Group aims to increase the planned capacity of its global data center portfolio to 10 gigawatts by the end of 2027, up from about 6GW, as it expands to meet demand for artificial intelligence and cloud computing.

Hussain Sajwani, founder and Chairman of DAMAC Group, said the UAE developer is pursuing projects across 14 countries through its global digital infrastructure company, DAMAC Digital. Its current planned capacity includes about 1 GW in the United States and 2.5 GW each in Europe and Asia.

The expansion will span Thailand, Malaysia, the Philippines, Finland, Spain, Greece, Italy, Türkiye and the United States. Sajwani said the group is also in advanced negotiations to acquire a large site in Australia and is exploring further growth in the United Kingdom.

DAMAC plans to acquire additional land outside the United States over the next 12 to 18 months. Access to electricity, infrastructure and logistics will determine the pace of expansion, he said.

The expansion follows DAMAC’s announcement last year of a planned $20 billion investment in US data centers, unveiled at a press conference with then-President-elect Donald Trump.

Sajwani reaffirmed that commitment, saying that about $9 billion had already been invested. Further development will depend on the availability of suitable land and power.

Much of the reason for that investment comes from the scale of demand concentrated in the United States. Sajwani expects the United States to remain the world’s largest data-centre market, although constraints involving power, land and environmental requirements may encourage companies to increase investment in international markets.

According to Sajwani, data-centre development costs have risen by around 30 percent and could increase by a further 20 to 30 percent. He noted that the United States and Europe are among the most expensive markets for development, while Asian markets offer comparative advantages in labour and equipment costs.

Supply-chain disruption and recurring equipment delays remain major obstacles to completing projects, he said. However, he noted that higher development costs can be managed through pricing and contracts with large corporate customers.

On the outlook for AI, he said he does not consider the sector’s current expansion merely an investment bubble, but rather a long-term technological transformation that will reshape work, production and everyday life.

The challenge now, he says, is for the group to focus on larger data centers, starting at around 100 MW, as well as doubling down on liquid-cooling technologies designed to support AI chips and high-density computing.

Modern liquid-cooling technologies can improve water-use efficiency, while electricity-pricing mechanisms could allow data centers to bear higher costs while providing benefits to consumers, he said.

He described investments in data centers as essential infrastructure for the development of artificial intelligence, warning that delays in building such facilities could affect economies’ ability to keep pace with technological transformation and strengthen competitiveness.

Alongside its infrastructure expansion, Sajwani said his investments in OpenAI, SpaceX and Anthropic had generated gains totaling billions of dollars.

His investment in Anthropic, made less than two years ago, had produced gains comparable to those accumulated over roughly three decades of his earlier business activity, he said.

His technology portfolio also includes xAI, Databricks, ByteDance, Together AI and Reflection AI, alongside investments in about 100 US funds, including venture capital funds.

Sajwani said he expects revenues to grow as adoption broadens, while acknowledging that market valuations could face corrections in the coming years.

Diversification, risk management and identifying companies with strong business models remain central to his investment approach, he concluded.