Data Centers in Kizad
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Kizad – Strategic Hub for Middle East & Africa
Kizad, within the United Arab Emirates, is a purpose-built economic zone designed for enterprises requiring hyperscale infrastructure and strategic market access. It offers an exceptionally stable and low-cost operating environment, making it a prime location for deploying compute-intensive workloads serving the rapidly growing digital economies of the Middle East, Africa, and South Asia. This market provides a powerful combination of low-cost power, minimal disaster risk, and a business-friendly tax structure.
Kizad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with room to grow into a top-tier global hub. |
| Direct Cloud On-Ramps | Over 0 – as of September 2025 | Direct access to major clouds is available via hubs in Dubai and Abu Dhabi. |
| Power Cost | ≈ $0.03/kWh (Industrial) – as of September 2025 | Exceptionally competitive power pricing, among the lowest for major data center markets globally. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, enhancing operational resilience. |
| Tax Incentives | No | The UAE's broader business-friendly tax environment compensates for a lack of specific incentives. |
| Sales Tax | 5% VAT – as of September 2025 | A low and straightforward value-added tax applies to goods and services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: Kizad benefits from proximity to the UAE's dense connectivity ecosystem, with access to a wide range of regional and international carriers. While specific numbers for the zone are developing, the broader UAE market features dozens of carriers, and facilities in Kizad are designed with carrier neutrality as a core principle, ensuring competitive network pricing and choice.
Direct Cloud On-Ramps: Direct cloud access is readily available through facilities in nearby Dubai and Abu Dhabi. This enables low-latency private connections to all major hyperscale cloud providers, even if on-ramps are not physically located within Kizad itself. Private network extensions are the standard method for establishing secure, high-performance cloud links.
Internet Exchange Points (IXPs): The primary Internet Exchange in the region is UAE-IX, located in Dubai. Peering at UAE-IX significantly improves traffic routing and reduces latency for users across the Middle East, making it a critical interconnection point for any deployment in Kizad.
Bare Metal: Bare metal server options are available from providers operating within the UAE. Global providers such as phoenixNAP and Hivelocity offer solutions that can serve the region, providing dedicated compute for performance-sensitive applications.
Power Analysis
Average Cost Of Power: The United Arab Emirates offers some of the most competitive power rates globally, with industrial electricity costing approximately $0.03/kWh as of September 2025. This extremely low cost is a significant advantage, directly reducing the total cost of ownership for high-density compute and large-scale data center operations. The grid mix is primarily natural gas, with a growing share from nuclear and solar power.
Power Grid Reliability: The electrical grid serving major industrial and economic zones like Kizad is modern, well-engineered, and highly reliable. Infrastructure is built with redundancy to support critical facilities, with multiple substations commonly available to ensure consistent uptime for data center operations.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Kizad is strategically located between Abu Dhabi and Dubai, the UAE's two largest economic centers. This positions data centers within easy reach of the financial, logistics, trade, and technology hubs in both emirates, providing low-latency connectivity to a vast corporate and governmental customer base.
Regional Market Reach: A deployment in Kizad provides a strategic base for serving a massive and fast-growing user population. It effectively covers the entire Gulf Cooperation Council (GCC) region, North and East Africa, and key markets in South Asia, including India and Pakistan, with impressive latency.
Tax Advantage For Data Centers: The UAE's primary tax advantage is its zero percent corporate income tax for most businesses, creating a highly favorable financial environment. This policy allows companies to retain more revenue, accelerating return on investment for capital-intensive data center projects.
Natural Disaster Risk
The United Arab Emirates has a Very Low overall natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10 as of September 2025. This stability is a key factor for ensuring high uptime and protecting critical infrastructure investments.
The most significant environmental risks for the region are primarily related to extreme climate conditions rather than seismic or cyclonic events. Key hazards include:
- Coastal Flood: Rated at 8.4, this is the highest individual natural hazard, impacting low-lying coastal areas.
- Tsunami: Rated at 6, reflecting a regional exposure from the Arabian Sea, though historical impact is low.
- Drought: Rated at 5, a persistent climatic challenge in the arid region.
- Epidemic: Rated at 5.2, a general risk factor for any major population and logistics hub.
Risks from earthquakes (0.1), river floods (0.6), and tropical cyclones (0.4) are negligible, making Kizad an exceptionally secure location from a natural hazard perspective.
