Data Centers in Khalifa City
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Khalifa City – Low Power Costs and Strategic Capital Access
Khalifa City serves as a primary point of presence for enterprises targeting the capital region of the United Arab Emirates. With exceptionally low power costs and a stable regulatory environment, it provides a secure foundation for local edge computing and backup operations. Businesses benefit from proximity to Abu Dhabi industrial and government sectors, ensuring low-latency access to critical regional markets.
Khalifa City: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Reliable links with maturing international capacity. |
| Direct Cloud On-Ramps | 0 – as of December 2025 | Nearest on-ramp hub is located in Dubai. |
| Power Cost | $0.03/kWh – as of December 2025 | Competitive rates driven by gas and nuclear. |
| Disaster Risk | Low (2.1/10) – as of December 2025 | Risk managed through modern infrastructure. |
| Tax Incentives | No | No specific data center incentives available. |
| Sales Tax | 5% VAT – as of December 2025 | Low consumption tax for the region. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5. As of December 2025, the local market is concentrated yet maintains reliable connections to major regional telecommunications providers. Access remains consistent with the broader Abu Dhabi metropolitan area.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions. Currently, there are no direct native on-ramps in Khalifa City as of December 2025. Enterprises typically reach cloud regions for AWS, Microsoft Azure, or Google Cloud (GCP) via private network interconnects to the primary hub in Dubai.
Internet Exchange Points (IXPs): Most traffic peers via UAE-IX in Dubai, which serves as the primary interconnection point for the region. This ensures efficient traffic routing within the Emirates without needing to leave the national network.
Bare Metal: Dedicated hardware services are available through regional providers. Platforms like Latitude.sh or Hivelocity can bridge local compute needs with global management tools for users in this region.
Power Analysis
Average Cost Of Power: $0.03/kWh, as of December 2025. This rate is among the most competitive globally, supported by a mix of 87% natural gas, 7% nuclear, and 6% solar generation. Low utility costs significantly reduce the total cost of ownership for high-density deployments.
Power Grid Reliability: The grid is well-engineered and benefits from substantial investment in the Barakah Nuclear Energy Plant. Redundant substation support across the industrial corridor ensures a steady supply for mission-critical operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Khalifa City is centrally located near the Abu Dhabi International Airport and the capital administrative core. This placement is ideal for firms serving government entities and the growing aerospace and logistics sectors.
Regional Market Reach: This location provides a gateway to the entire Abu Dhabi Emirate and serves as a secondary site for Dubai-based operations. Its position allows for low-latency delivery to millions of consumers across the Arabian Peninsula.
Tax Advantage For Data Centers: The United Arab Emirates offers a low-tax environment with a standard 5% VAT and no corporate income tax for many business activities. This fiscal stability provides a predictable cost structure for long-term infrastructure investment.
Natural Disaster Risk
Overall Risk: Low (2.1/10), as of December 2025. The market faces very low exposure to natural hazards, with most risks managed through advanced engineering.
- Coastal Flood: 8.4 (Regional). While a higher statistical score, modern facilities are purpose-built with elevation to mitigate sea-level risks.
- Tsunami: 6.0 (Regional). This is an indirect risk for the Gulf region, managed through strict coastal building codes.
- Epidemic: 5.2. Standard regional risk profile with advanced healthcare response systems.
- Drought: 5.0. Managed through extensive desalination infrastructure and water security programs.
