Driving resilience and sustainability in Middle East growing data centre boom
Dubai — With unprecedented investment flowing into digital infrastructure across the Middle East, the region is experiencing a boom in data centre development. But with fast-tracked timelines, skills shortages, and mounting sustainability pressures, critical questions arise about the long-term resilience and operational performance of these facilities.
Graham Easton, Managing Director of ENGIE Solutions IFM GCC, sheds light on the challenges and solutions facing the sector—from talent retention and commissioning risks to bridging the gap between green construction and true sustainability.
Interview Excerpts:
How does the rapid expansion of the Middle East data centre market impact the long-term quality and resilience of infrastructure, particularly with projects being fast-tracked to meet investor timelines? Rapid growth in Middle East data centers prioritises speed over quality, leading to facilities being rushed to market before full commissioning. This creates risks throughout their operational life. Data centers are complex ecosystems that require thorough validation of critical systems, which is often bypassed due to pressure to meet investor timelines.
With a growing talent shortage in the data centre sector, how are operators addressing the dilution of expertise, and what strategies are being adopted to attract and retain critical skills in the region?
A significant skills crisis in data centers is driven by a lack of technical expertise and experience. This is exacerbated by talent poaching instead of workforce development, leading to diluted expertise, increased salary costs, and higher operational risks. The solution requires a shift in human capital development, including standardised certification programs for technicians, similar to existing facility benchmarks. Educational partnerships, data center-specific curricula, apprenticeships, and minimum certification standards are crucial for protecting industry investments.
What potential risks are associated with commissioning data centre facilities prematurely under commercial pressure, and how can stakeholders enforce more rigorous testing protocols pre-launch?
Premature data center commissioning, driven by commercial pressure, is a significant risk. Rushing this critical phase, where design meets reality, leads to inadequate testing, poor knowledge transfer, and unvalidated emergency systems. Consequences include higher failure rates, reduced energy efficiency, increased maintenance, and critical failures during peak demand due to inadequately tested, interconnected systems. Mitigating this requires rigorous testing protocols, ample time for integration testing, early engagement, and deep collaboration with service partners, fostering a shared responsibility for facility safety and reliability.
While many data centres boast green construction certifications, there appears to be a disconnect regarding operational sustainability. How can we close the green finance gap and drive true efficiency beyond the build phase?
Middle East data centers struggle with operational sustainability despite green building certifications. The harsh climate, high energy costs, and regulations necessitate it, but initial sustainability efforts often neglect operational systems like cooling (40-50% of energy). Bridging this gap requires dynamic solutions from design, including hybrid/free cooling and active energy monitoring. AI-driven smart O&M systems offer significant opportunities to optimise performance, predict maintenance, and continuously adjust operations for energy efficiency, reducing costs and environmental impact while addressing skill shortages. Financial structures must also evolve, with green financing tied to performance metrics throughout the facility's operational life.
In light of global geopolitical tensions disrupting just-in-time supply chains, how are data centre operators in the Middle East adapting their procurement and inventory strategies to safeguard uptime and avoid costly disruptions?
Geopolitical volatility and supply chain issues necessitate a strategic approach to procurement for critical infrastructure, particularly in the Middle East, due to its transit vulnerabilities. Developers must prioritise regional support, spare parts, and supply chain resilience over initial cost in supplier evaluations, adopting total-cost-of-ownership models. Strategic stockpiling and diversified, regional supplier relationships are crucial for risk mitigation, offering faster response times and reduced global dependency despite local challenges. Data center operators need to become proactive supply chain managers, investing in expertise, inventory systems, and regional relationships to ensure reliability for digital transformation.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
19 minutes ago
- Khaleej Times
India's Titan to acquire majority stake in Dubai's Damas for over Dh1 billion
India's Titan Company on Monday said it would acquire a majority stake in UAE's Damas LLC, the current holding company for Damas jewellery business in GCC countries, from Mannai Corporation for an enterprise value of Dh1.038 billion. Titan Holdings will hold 67 per cent of the equity share capital and voting rights in Damas. It hopes to complete acquisition by January 31, 2026. It will have the right to acquire the remaining 33 per cent stake after December 31, 2029, it said in a statement to the National Stock Exchange, where it is listed. The acquisition will facilitate the fashion accessories manufacturer's expansion across six GCC countries. Founded in 1907 in Dubai, Damas has a network presence of 146 stores across GCC. Mannai Corporation is a publicly listed company headquartered in Qatar with activities mainly focused on the business-to-business segment based on trade and IT services. 'After successfully establishing Tanishq in GCC countries and the USA, our ambition for a global jewellery play is moving to the next stage. With the Damas acquisition, Titan Company is stepping out from its diaspora focus into other nationalities and ethnicities,' said CK Venkataraman, managing director of Titan. 'The acquisition not only creates a significant new global opportunity for Titan, but also enhances Titan's overall position in the jewellery market in GCC countries and brings in multiple synergy benefits in talent, retail networks and supply chain,' Venkataraman said. Alekh Grewal, group CEO of Mannai Corporation, said Damas became a subsidiary of Mannai in 2012, and the time has come for investment in the next phase of its expansion in the region. 'We are confident that the combination of Damas and Titan will drive Damas in the next chapter of its growth trajectory in the GCC. Mannai will continue to own a minority stake in Damas for the next four years as growth plans for Damas are taken forward. It is intended that the proceeds of the sale transaction will be deployed by Mannai to strengthen its resources in support of further expansion of its core trade and IT services businesses, in addition to reducing the group debt,' said Grewal. As per the proposed transaction, Signature Jewellery Holding Limited, a DIFC company, will become a holding company after acquiring the fully-paid shares of Damas LLC and its subsidiaries. Damas recorded a turnover of Dh1.461 billion in 2024. The acquisition would be subject to certain conditions and regulatory requirements.
Khaleej Times
an hour ago
- Khaleej Times
Dubai office market shows early signs of rate stabilisation
Rents for prime office spaces in Dubai have risen 36 per cent compared to last year, data showed on Monday. New findings from Savills latest Dubai Office Market in Minutes report for Q2 2025 indicate a shift from last year's pattern of across-the-board rental growth, with signs that rents are beginning to level out in several submarkets. At the same time, the market continues to see strong appetite for larger office spaces and an evolving mix of future supply, marking a noticeable change from the trends observed in 2024. The report highlights that 11 of the 23 submarkets tracked by Savills saw no quarterly change in rents, a contrast to last year's steady and constant growth. This points to a more cautious approach by some occupiers as they wait for new developments to be delivered before committing to commercial space. Savills Middle East data also shows a clear shift in demand towards bigger spaces. In Q2 2025, 44 per cent of leasing enquiries were for offices between 10,000 and 20,000 sq ft, reflecting a move by new entrants and existing firms looking to expand their operations. By comparison, spaces below 10,000 sq ft accounted for 38 per cent of total demand. Toby Hall, Head of Commercial Agency at Savills Middle East said: 'We're seeing clear evidence that businesses continue to commit to Dubai, with larger footprint requirements becoming more common. Despite global economic headwinds, the city remains an attractive hub, supported by a strong pipeline of international companies establishing or growing their regional operations here.' Rachael Kennerley, Director of Research at Savills Middle East added: 'The stabilisation of rents in several submarkets suggests the market is entering a more balanced phase. While core areas remain in high demand, we're now seeing occupiers adopt more considered strategies, including securing future space in advance or exploring emerging locations with better affordability.' In another shift from previous years, Savills has observed traditionally residential developers now exploring strata office developments, which could bring more diversified ownership models and broaden the office landscape beyond the usual central business districts. This aligns with Dubai's 2040 Urban Master Plan, which seeks to build a 20-minute city with commercial activity spread across more areas. With recent rental rises still fresh in mind, more occupiers are now securing rights of first refusal on additional space within their existing buildings. This gives them the ability to grow as needed while maintaining the benefits of their current lease agreements. Looking ahead, Savills expects demand to increasingly spill over into locations such as Dubai South and Expo City, supported by the availability of larger spaces, more competitive rents, and improved transport links.
Khaleej Times
an hour ago
- Khaleej Times
Sales soar as Abu Dhabi off-plan projects attract strong demand
Abu Dhabi's real estate market recorded strong performance in the first half of 2025, with property sales accelerating across affordable, mid-tier, and luxury segments amid rising prices and growing investor appetite. According to the latest data from dubizzle's H1 2025 Abu Dhabi Property Sales Market report, the emirate continues to emerge as one of the most attractive real estate investment destinations in the region, thanks to large-scale infrastructure projects, increased transparency, and diversified off-plan offerings. Transaction values surged in the first six months of 2025, underpinned by demand for ready and off-plan properties. The introduction of digital platforms like Madhmoun and headline developments such as the upcoming Disneyland on Yas Island have bolstered buyer confidence and elevated price points across key neighborhoods. In the ready property segment, prices rose across the board. Affordable apartment prices increased by 6.44 per cent, while affordable villas appreciated by up to 3.38 per cent. Mid-tier apartments and villas recorded gains of 4.91 per cent and 4.84 per cent, respectively. Luxury apartment prices surged by 8.95 per cent, with high-end villas climbing by 4.92 per cent, reflecting the strong appeal of waterfront and island communities such as Yas Island, Saadiyat Island, and Al Jubail Island. Villas in Al Reef topped the affordable segment with a return on investment (ROI) of 6.18 per cent. Al Shamkha, Khalifa City, Zayed City, and Hydra Village also registered notable performance. In the mid-tier category, Al Raha Gardens and Al Samha gained traction among buyers, while the luxury market remained centered around prime coastal destinations. Al Maryah Island led luxury apartments with an ROI of 8.48 per cent, followed by Yas Island and Al Raha Beach. Abu Dhabi's off-plan market gained further momentum in H1 2025, with increased inventory and demand across all pricing tiers. In the affordable category, projects in Al Shamkha and Zayed City stood out, including Al Reeman 1 and Granada at Bloom Living. Luxury developments such as Gardenia Bay and Yas Bay on Yas Island saw significant buyer interest, with apartments averaging Dh2.11 million and Dh1.96 million, respectively. Saadiyat Cultural District reached even higher with average prices of Dh4.66 million. Mid-tier off-plan apartments on Al Reem Island — such as Vista 3, Reem Hills, and Renad Tower — drew considerable attention, alongside communities in Masdar City and Shakhbout City. On the villa side, Reem Hills and Royal Park at Masdar City dominated mid-tier demand, while luxury villa investors targeted Yas Riva and projects in Saadiyat Island and Al Jurf. Returns across the board reflected the capital's investment appeal. Affordable apartments in Al Reef delivered ROIs of 9.46 per cent, while Al Ghadeer followed closely with 8.42 per cent. Mid-tier apartment yields peaked at 7.33 per cent on Al Reem Island and 7.20 per cent in Masdar City. Villas in Hydra Village, Al Raha Gardens, and Saadiyat Island offered solid rental yields, with the latter delivering a top-tier ROI of 5.56 per cent. Supporting dubizzle's findings, Bayut's H1 2025 data confirms a parallel trend of rising demand, especially in off-plan developments. Affordable sectors such as Al Reef, Al Ghadeer, and Khalifa City remained favored by budget-conscious buyers, while Al Reem Island and Masdar City attracted mid-segment investors. For luxury buyers, Yas Island and Saadiyat Island stood out, buoyed by the anticipation surrounding Disneyland and expanding waterfront amenities. Bayut's research also noted that listing prices for affordable apartments increased by up to 7 per cent, while mid-tier apartments appreciated by 6 to 11 per cent. Mid-tier villas in Al Samha posted a steep 26.7 per cent rise, indicating a rising appetite for family homes. In the luxury bracket, apartment prices in Yas and Saadiyat Islands rose by as much as 17 per cent, although some villa communities like Al Jubail Island experienced a price correction of 17.8 per cent due to shifting buyer focus. The market's robust digital transformation has also played a role in improving buyer confidence. CEO of dubizzle and Bayut, and Board Member of the Dubai Chamber of Digital Economy, said: 'Abu Dhabi's real estate landscape is evolving rapidly. With over 9.3 million visits recorded on Bayut's Abu Dhabi listings alone in six months, demand is clearly on the rise. Smart platforms like Madhmoun and landmark projects are reshaping the capital into a transparent, future-ready market.'
