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Data Centers in Zayed Military City

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Zayed Military City – Strategic Digital Hub for the UAE

Zayed Military City is emerging as a strategic location for digital infrastructure within the United Arab Emirates. It offers exceptionally low power costs and a stable, low-risk environment, making it a compelling choice for hyperscale and large-scale deployments that require secure, cost-effective operations to serve the growing regional demand.

Zayed Military City: At A Glance

FactorRating / DataNotes
Global Connectivity GradeBSolid regional connectivity, though not yet a primary international hub.
Direct Cloud On-Ramps0 – as of September 2025Direct access is available via Dubai and Abu Dhabi through private network extensions.
Power Cost≈ USD 0.03/kWhExceptionally low pricing driven by favorable Power Purchase Agreements (PPAs).
Disaster RiskVery Low (2.1/10)Minimal exposure to significant natural hazards, ensuring high operational uptime.
Tax IncentivesNoThe UAE's broader business-friendly environment is the main financial attraction.
Sales Tax5% VATA standard Value Added Tax applies to services, as of September 2025.

Network & Connectivity Ecosystem

Carrier Density & Carrier Neutrality: As a developing market, Zayed Military City has a focused carrier presence. Initial deployments rely on connectivity from major national providers, with an estimated 5-10 carriers available as of September 2025. Facilities are purpose-built to be carrier-neutral, accommodating new providers as the ecosystem grows.

Direct Cloud On-Ramps: There are no public cloud on-ramps located directly within Zayed Military City. High-speed, low-latency connectivity to major cloud providers is achieved via dedicated fiber links to the primary interconnection hubs in nearby Dubai and Abu Dhabi.

Internet Exchange Points (IXPs): The primary national IXP is UAE-IX in Dubai. Peering for Zayed Military City data centers is routed through Dubai, enabling efficient traffic exchange and optimized network performance across the Middle East.

Bare Metal: Bare metal server options are available, typically provisioned from providers located in Dubai's established data center hubs. Services from providers like Hivelocity can be connected via dedicated network links.

Power Analysis

Average Cost Of Power: The industrial power cost in the region is exceptionally competitive, at approximately USD 0.03/kWh as of September 2025. This rate, secured through long-term PPAs, provides significant operational cost savings for high-density computing. The grid mix is primarily natural gas (~87%), with growing contributions from nuclear (~7%) and solar (~6%).

Power Grid Reliability: The national grid is modern, well-engineered, and reliable, with significant investment in generation and transmission redundancy. Data centers in the area are supported by this sturdy infrastructure, ensuring high levels of uptime.

Market Access, Business & Tax Climate

Proximity To Key Business Districts: While a distinct location, Zayed Military City is strategically positioned between Abu Dhabi and Dubai. This provides secure digital infrastructure that can serve the UAE's primary economic centers, government entities, and financial districts with low latency.

Regional Market Reach: Deployments in this market effectively serve the entire UAE and can act as a disaster recovery or secondary site for operations across the broader Gulf Cooperation Council (GCC) region.

Tax Advantage For Data Centers: The United Arab Emirates offers a compelling business environment with no federal corporate income tax. This absence of direct taxation on corporate profits is a primary financial benefit for data center operators and their customers.

Natural Disaster Risk

Zayed Military City has 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 environmental threats, which is a major advantage for mission-critical facilities.

The most notable, though still low, environmental risks include:

  • Coastal Flood: Rated 8.4, this reflects a regional consideration for the UAE coastline, not a direct threat to this inland location.
  • Tsunami: Rated 6, this is also a coastal-specific risk for the UAE and does not directly impact the city.
  • Drought: Rated 5.
  • Epidemic: Rated 5.2.
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