ZAWYA-PROJECTS: DEWA approves expansion of green data centre in Dubai

Staff WriterDubai Electricity and Water Authority (DEWA) has approved the awarding of the second phase of the solar-powered green data centre in the emirate's Warsan area.The first phase of the data centre is scheduled to be launched in the second half of 2026, the Dubai-listed utility provider said in a statement.The expansion was endorsed by Saeed Mohammed Al Tayer, Managing Director and CEO of DEWA, during his inspection tour at the site.The green data centre is the fourth such facility of Moro Hub, a subsidiary of Digital DEWA, the digital arm of DEWA. Covering 66,000 square metres (sqm), the facility will have a planned capacity of more than 100 megawatts (MW).In January 2025, Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister and Minister of Finance of the UAE inaugurated the second phase of Moro Hub's Green Data Centre located at the Mohammed Bin Rashid Al Maktoum Solar Park. The first phase of that facility was inaugurated in 2023 by Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai.The solar park data centre facility covers 100,000 sqm and is designed to reach a total capacity of 100 MW over ten phases. Following the opening of its first phase in 2023, it was recognised by Guinness World Records as the largest solar-powered data centre.Rapid growthThe data centre sector in the UAE and the region is witnessing rapid capacity growth. In April 2025, Emirates Integrated Telecommunications Company (du) had announced a 2 billion UAE dirhams ($544.54 million) hyperscale data centre deal with Microsoft.In October 2025, Abu Dhabi-backed AI firm G42 said that the first 200 MW of a planned 5-gigawatt (GW) artificial intelligence campus in the UAE is expected to come online in 2026.The "Stargate UAE" project is part of a deal brokered by US President Donald Trump in May 2025 to build the world's largest set of AI data centres outside the US.In December 2025, UAE-based Khazna Data Centres acquired a 225,000-sqm land parcel in Dammam to develop up to 200 MW of AI-ready data centre capacity. In October 2024, the company had started construction of 100MW AI-optimised data centre, the region’s first, in the Emirate of Ajman. In a report released in October 2025, global property consultancy Knight Frank had observed that despite the wave of development, available capacity in the EMEA region is limited. It said vacancy rates in the UAE sit at just 2.4 pecent, one of the lowest in EMEA , underscoring the strength of demand from AI-driven and hyperscale operators establishing a regional foothold.The consultancy had also noted that the EMEA region’s data centre sector requires more than $560 billion in development capital to fund the development pipeline.(Writing by P Deol; Editing by Anoop Menon)(anoop.menon@lseg.com)Subscribe to our Projects' PULSE newsletter that brings you trustworthy news, updates and insights on project activities, developments, and partnerships across sectors in the Middle East and Africa. Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.