Exploring the establishment of data centers in the UAE, driven by the surge in artificial intelligence (AI)
Alpha Dhabi Holding Explores Data Centre Construction Amid AI Boom
Alpha Dhabi Holding, a regional conglomerate with interests in construction, health care, hospitality, and industry, is exploring opportunities to participate indirectly in the data centre sector. The company, which is a unit of Abu Dhabi's International Holding Company, sees data centre construction as a significant future growth area and new market opportunity.
According to Derek Nicholson, the chief strategy and investor relations officer at Alpha Dhabi Holding, the company's revenues are growing, and they are benefitting from the initiatives launched by the UAE government. In the first half of 2025, Alpha Dhabi's revenue jumped nearly 22% year-on-year to Dh35.85 billion, with the industrial portfolio contributing the most at Dh13.4 billion. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the same period jumped 34% to Dh8.4 billion. Real estate was the second-largest contributor with Dh12.8 billion, and construction contributed Dh6 billion.
Despite not having specific plans to invest in data centres, Alpha Dhabi Holding is considering building them. Trojan Construction Group, which Alpha Dhabi controls, could establish a dedicated division focused on data centre construction projects. This strategy reflects the UAE's broader push to advance technology infrastructure, notably in Abu Dhabi amid the AI boom and the imminent Stargate data centre development. The Stargate data centre, a 1-gigawatt data centre, is to be built in the UAE capital.
Alpha Dhabi Holding's total assets are about Dh200 billion ($54.5 billion). The company has plans to float more of its companies, although the details have yet to be determined. In May, Alpha Dhabi signed a partnership agreement with Abu Dhabi's Al Jazira Sports Club to run until the end of the 2027-28 football season.
It's important to note that Alpha Dhabi is open to building key components of the AI boom, rather than owning data centre assets outright. This approach aligns with the company's focus on leveraging its existing construction capabilities to tap into new market opportunities.
[1] Source: Gulf Business, Khaleej Times, The National, Zawya, and Alpha Dhabi Holding's official website.
- Alpha Dhabi Holding, a multinational entity active in the UAE, is delving into the data centre sector, seeing it as a promising future growth area and new market opportunity.
- The conglomerate's revenue has been escalating, with the industrial portfolio being the primary contributor, followed by real estate and construction, as reported by Gulf Business, Khaleej Times, The National, Zawya, and Alpha Dhabi Holding's official website.
- Despite not committing to investing in data centres directly, Alpha Dhabi Holding may establish a dedicated division for data centre construction projects through its subsidiary, Trojan Construction Group.
- Abu Dhabi, the UAE capital, is witnessing a push for technological advancements, particularly in the AI domain, which coincides with the area's imminent Stargate data centre development, a 1-gigawatt facility.
- In addition to its interests in the UAE, Alpha Dhabi Holding has total assets valued at approximately Dh200 billion ($54.5 billion) and plans to float more of its companies, as per their official website.
- Beyond data centre ownership, Alpha Dhabi Holding intends to build essential components of the AI boom, aligning with its strategy to capitalize on new market opportunities using its existing construction capabilities.
- Besides its investments in the Middle East, Alpha Dhabi has recently entered into a partnership agreement with Abu Dhabi's Al Jazira Sports Club, scheduled to run until the end of the 2027-28 football season, signifying its engagement in the sport industry in Europe.
){kind=link}