Khazna has broken ground on two new data centers in the UAE.

The two facilities will be located in Mafraq and Masdar City, providing a combined 60MW of capacity.

It is expected the data centers – AUH4 in Mafraq and AUH8 in Masdar City – will be completed in late December 2026 and August 2026, respectively.

Khazna Dubai.jpg
– Khazna Data Centers

“The UAE economy is transforming rapidly as industries across the board continue to embed AI into more of their critical processes. This is creating unprecedented capacity demand for AI-optimized infrastructure, and we’re proud to be meeting this demand,” said Khazna CEO Hassan Alnaqbi.

The two data centers will use a modular design architecture, which is intended to improve efficiency during the build phase, and will use adiabatic free cooling.

Plans for the AUH4 data center in Mafraq were first shared by the company in May 2024. It is being built on government-owned land and was originally slated for a mid-2026 launch date.

Khazna launched a 31.8MW data center in Abu Dhabi in February 2024, known as AUH6, and also in Masdar City.

The company is backed by G42, and in April 2025 secured additional funding from MGX and Silver Lake, with the investment firms becoming minority shareholders in the business. It currently operates 30 data centers across the UAE and is also developing a facility in Egypt.

Khazna is also currently developing QAJ1, which it claims will be the region’s first AI-optimized data center. QAJ1 will be located in Ajman and was first announced in October 2024. According to the company, it will be designed to Tier 3 standards.

This data center will have 100MW of IT capacity and use liquid cooling. The company said the steel structures are now complete, and the initial project phase is due for completion in December 2026.

Subscribe to The Data Center Construction Channel for regular news round-ups, market reports, and more.