Data Centers in Kizad
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Kizad – Industrial Power at Scale
Executive Summary
Kizad is the primary destination for organizations requiring heavy industrial capacity alongside digital infrastructure. It offers some of the lowest power costs globally, making it a premier site for high-density compute and energy-intensive AI workloads.
Kizad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional hub for international subsea cable landings. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Nearest primary on-ramp hub is located in Dubai. |
| Power Cost | $0.03/kWh – as of September 2025 | Exceptionally low rates driven by diverse generation sources. |
| Disaster Risk | Low (2.1/10) – as of September 2025 | Geologically stable zone with very low seismic activity. |
| Tax Incentives | No – as of September 2025 | General free zone and industrial benefits apply. |
| Sales Tax | 5% VAT – as of September 2025 | Standard national value added tax rate. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Carrier count: over 5, as of September 2025. High-capacity fiber connects the zone to the broader Abu Dhabi and Dubai networks, ensuring reliable transit for industrial tenants.
Direct Cloud On-Ramps: Over 0, enabling access to 0 cloud regions, as of September 2025. There are no direct physical on-ramps for AWS, Google Cloud (GCP), or Microsoft Azure within this specific zone. Connectivity to these providers is typically handled via private transport or software-defined interconnection to the nearest hub in Dubai.
Internet Exchange Points (IXPs): UAE-IX in Dubai serves as the primary regional exchange. Peering for assets in this zone often routes through this central hub to ensure low-latency access across the Middle East.
Bare Metal: High-performance compute options are available through providers such as Latitude.sh and Hivelocity, supporting local industrial automation and data-heavy logistics.
Power Analysis
Average Cost Of Power: Industrial electricity costs approximately $0.03/kWh, as of September 2025. This rate is highly competitive and provides a significant margin for large-scale operations compared to other regional markets. The energy mix consists of approximately 87% fossil fuels, 7% nuclear, and 6% renewables.
Power Grid Reliability: The local grid is purpose-built for heavy industry with multi-substation support. Redundant infrastructure ensures high uptime for both manufacturing and data center tenants.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Located adjacent to Khalifa Port, these facilities provide low-latency connectivity for logistics, maritime, and supply chain management systems.
Regional Market Reach: Kizad acts as a strategic gateway for the Arabian Peninsula. It offers a resilient alternative to the denser Dubai market while serving the digital needs of the Abu Dhabi metropolitan area.
Tax Advantage For Data Centers: The absence of corporate income tax and a low 5% VAT create a predictable financial environment. This stability allows for long-term capital planning for massive infrastructure deployments.
Natural Disaster Risk
The overall risk profile for Kizad is Low (2.1/10), as of September 2025. This location is one of the safest for physical assets in the Middle East due to its geological stability.
- Coastal Flood: 8.4/10. As a maritime industrial zone, this is a regional risk managed through advanced engineering and breakwater systems.
- Tsunami: 6.0/10. This is identified as a regional risk but is mitigated by localized maritime defense infrastructure.
- Epidemic: 5.2/10. This score reflects national health preparedness and response infrastructure.
- Drought: 5.0/10. Arid regional conditions are standard and have minimal impact on climate-controlled environments.
- Natural Hazard (General): 4.4/10. This composite score confirms the overall environmental stability of the geography for industrial development.
