Data Centers in Kizad
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Kizad – Strategic Hub for Middle East & Africa
Kizad, part of Abu Dhabi's industrial and economic zone, is an excellent location for enterprises requiring low-cost, scalable power and strategic access to Middle Eastern, African, and South Asian markets. Its purpose-built infrastructure ensures high uptime and growth potential for deployments that demand both reliability and global reach. This market is ideal for hyperscale, government, and large-scale enterprise data center operations.
Kizad: At A Glance
| Factor | Rating / Data | Notes |
|---|---|---|
| Global Connectivity Grade | B | Strong regional connectivity with developing global interconnection options. |
| Direct Cloud On-Ramps | 0 – as of September 2025 | Direct access is available via nearby Dubai hubs through private network extensions. |
| Power Cost | ≈ USD $0.03/kWh – as of September 2025 | Among the lowest industrial power costs globally, ideal for dense compute. |
| Disaster Risk | Very Low (2.1/10) – as of September 2025 | Minimal exposure to significant natural disasters, ensuring operational stability. |
| Tax Incentives | No | The UAE's favorable tax environment does not include specific data center incentives. |
| Sales Tax | 5% VAT – as of September 2025 | A low and straightforward value-added tax applies to services. |
Network & Connectivity Ecosystem
Carrier Density & Carrier Neutrality: As a developing hub, Kizad offers access to a focused set of regional and international carriers, with estimates in the range of 10-20 providers as of September 2025. The market supports carrier-neutral facilities, allowing tenants to connect with their preferred network partners.
Direct Cloud On-Ramps: There are no direct public cloud on-ramps located within Kizad itself. However, dedicated, low-latency connectivity to all major cloud providers, including AWS, Google Cloud (GCP), and Microsoft Azure, is readily available via private network extensions to the primary interconnection hubs in nearby Dubai.
Internet Exchange Points (IXPs): Peering is primarily managed through the UAE-IX in Dubai, the region's largest carrier-neutral internet exchange. Accessing UAE-IX from Kizad enables efficient traffic exchange and improved network performance across the Middle East.
Bare Metal: Bare metal server options are available, providing dedicated compute resources for performance-sensitive applications. Providers such as phoenixNAP and Leaseweb can service the region, often deploying from nearby established markets.
Power Analysis
Average Cost Of Power: The industrial power cost in Kizad is exceptionally low, approximately USD $0.03/kWh as of September 2025. This aggressive pricing is a significant advantage, directly reducing operational expenditures for power-intensive workloads like AI training and high-performance computing. The grid mix is primarily natural gas, with growing contributions from nuclear and solar power.
Power Grid Reliability: The electrical grid serving Kizad is modern and well-engineered, benefiting from significant government investment in infrastructure. Data centers in the area are supported by redundant power feeds from multiple substations, ensuring high levels of uptime and service continuity.
Market Access, Business & Tax Climate
Proximity To Key Business Districts: Kizad is strategically located between Abu Dhabi and Dubai, offering excellent access to the UAE's primary commercial, financial, and logistics centers. This proximity allows businesses to serve both metropolitan areas with minimal latency.
Regional Market Reach: From Kizad, organizations can effectively serve a vast geography spanning the Gulf Cooperation Council (GCC), North and East Africa, and South Asia. Its location is central for multi-continent digital service delivery.
Tax Advantage For Data Centers: The primary financial benefit in the UAE is its overall low-tax environment, including a complete absence of corporate income tax for most businesses. This structure creates a highly attractive financial model for data center operators and their customers, simplifying accounting and maximizing profitability.
Natural Disaster Risk
Kizad and the surrounding region have a Very Low natural disaster risk profile, with an INFORM Risk score of 2.1 out of 10 as of September 2025. The area is not prone to significant seismic or severe weather events, making it a physically secure location for critical IT infrastructure.
The primary environmental hazards to consider are:
- Coastal Flood: The most notable risk for the coastal nation, though modern infrastructure mitigates direct impact.
- Tsunami: A low-probability, high-impact risk inherent to its coastal location.
- Drought: A persistent environmental condition for the arid region.
- Epidemic: A generalized risk factor common to all population centers.
