Damac unit in big US data market expansion with $20bn investment
DUBAI, 11 hours, 34 minutes ago
Edgnex Data Centers by Damac, a major digital infrastructure company and a fully owned unit of
Dubai-based real estate developer Damac, has announced its strategic entry into the US data centre market, marking a transformative phase in its international expansion.
Since its inception in 2021, the group has rapidly expanded across the Middle East, Southeast Asia and Europe, setting the stage for a strategic entry into the US market.
It brings and sets new benchmarks in secure, scalable, and sustainable digital infrastructure.
Edgnex, with a management team of 100+ professionals based in the Middle East, Europe and Asia, is actively expanding its team to support these growth plans.
The Damac unit is set to initially pump $20 billion into the market with a plan to potentially double the investment based on future demand, market opportunity and scalability.
The announced US expansion will deliver state-of-the-art data centers targeting a 2000MW capacity over the next four years.
This endeavour is aligned with Edgnex's commitment to building world-class digital infrastructure platforms targetting hyperscalers, AI players, and Fortune 500 companies alike, fostering innovation and delivering sustainable, high-quality infrastructure that powers customers in the U.S. and around the globe.
Edgnex said its expansion plan will focus on sunbelt states specifically Texas, Arizona, Oklahoma, and Louisiana and midwest states: Ohio, Illinois, Michigan, and Indiana.
The first phase includes capacity build-up through joint ventures with partners, acquiring land banks in conjunction with utilities, and acquiring existing data centers and platforms.
It will represent approximately 500MW capacity—one in the Sunbelt and one in the Midwest. This will meet the growing current demand as Edgnex continues to scale.
On the strategic move, Hussain Sajwani, the Founder of Damac, said: "This is an extremely exciting moment for us. Our foray into the U.S. market in data centers represents a significant milestone in our journey to build a global digital infrastructure platform that will empower businesses today and in the future."
Damac's success in real estate in the Middle East and globally has provided the foundation for ventures into high-capex, high-yield asset classes like data centers, he stated.
Enterprises of all sizes adopting cloud and AI technologies present a significant 15-year growth opportunity that reinforces the Dubai group's commitment to seizing opportunities and establishing a robust global platform that serves international markets.
"Leveraging our expertise in real estate and data centers, we aim to deliver best-in-class infrastructure that supports the next wave of cloud and AI growth, helping further to position the U.S. in the technology and global data ecosystem," he stated.
Damac is an infrastructure provider and does not handle or manage data privacy or compliance. Edgnex plans to leverage Damac's equity, bank debt, and potential third-party capital to fuel expansion in the US.
Besides its latest foray into data centres, Damac as a Group is significantly invested in the US in real estate and through several private equity funds.
In Miami, Damac is planning a boutique condo project designed by Zaha Hadid Architects with a $1 billion GDV development value. It continues to look for strategic real estate opportunities in the US.
Edgnex's existing portfolio includes operations in 10 countries (UAE, KSA, Turkey, Thailand, Malaysia, Indonesia, Greece, Spain, Finland and Italy) with a projected capacity exceeding 1000MW+.
Current operational data centers include over 10MW in Saudi Arabia and 5MW in Thailand, which will be operational by Q1 2025. By 2026, Edgnex aims to have over 300MW+ operational globally, it added.-TradeArabia News Service
