Damac to invest $1bln in data centres; eyes more Saudi units

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Damac Group, a leading conglomerate known for its diverse investment portfolio including luxury real estate, hospitality, property management and logistics, has announced plans to invest up to $1 billion in the data centres sector over the next couple of years.

Recognising the growing demand for digital infrastructure worldwide, Damac has been expanding its presence in this critical area.

One key milestone in Damac's diversification vision was the launch of Edgnex Data Centres in 2021. This strategic move has positioned the group to capitalise on the increasing need for robust digital infrastructure.

According to Damac, Edgnex is making significant strides in Saudi Arabia, with facilities under construction in Dammam and Riyadh that will deliver 55MW by 2025. Additionally, plans are underway for a data centre in Amman, Jordan, and another in Turkey in partnership with Vodafone.

In May, Damac had announced its entry into the Indonesian market with plans to build a data centre in Jakarta. The 15MW facility, located along MT Haryono, is scheduled to complete its first construction phase in the fourth quarter of 2025.

"This substantial investment in the data centre sector reflects our commitment to advancing digital infrastructure and supporting the technological transitions that are essential for future growth and innovation," said Hussain Sajwani, the Founder and Chairman of Damac Group.

In addition to the technological transitions and diversification, particularly in the data centres sector, Damac Group is heavily focusing on its Artificial Intelligence (AI) investments.

The increased focus on AI and technological infrastructure, he stated, is expected to bolster the Group's existing portfolio and pave the way for new strategic partnerships and collaborations.

By investing in AI and data centres, it aims to leverage advanced technologies to create value and drive sustainable growth, he added.

The Damac Group's diversified family office has already invested in over 70 funds across various strategies, demonstrating its commitment to fostering innovation and growth across multiple industries.

With this new focus on AI, the Group aims to further enhance its role in advancing foundational AI models and infrastructure.

"As a forward-thinking organisation, we recognise the transformative potential of AI in shaping the future," remarked Sajwani.

"Our increased investment in AI reflects our commitment to supporting the development of groundbreaking technologies that can drive significant progress and create new opportunities across various sectors," he stated.

According to him, Damac has made notable investments in leading AI companies including a $50 million in the AI startup, Anthropic – as one of the top investors who have bought into the company from the bankrupt cryptocurrency exchange, FTX.

Also it has made investments in xAI – an American AI startup founded by Elon Musk and in Mistral – a France-based AI company which is one of the best European large-language model open source.

"We are excited to be part of the AI revolution and to contribute to the growth of this dynamic industry," said Sajwani.

"Our investments in companies like Mistral, Anthropic, and xAI underscore our dedication to fostering innovation and driving the next wave of technological advancements," he added.