Damac Group to Invest $3 Billion in Southeast Asia Data Centers

Dubai’s Damac Group, led by billionaire Hussain Sajwani, plans to invest $3 billion in building data centers across Southeast Asia, a region rapidly emerging as a hub for artificial intelligence (AI) and cloud services. The investment will focus on Malaysia, Indonesia, and Thailand over the next three to five years, according to Danish Nayar, senior vice president of investments and acquisitions at Edgnex Data Centers, a Damac subsidiary.

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First Steps in Thailand

The first of three planned data centers in Thailand will begin operations in Bangkok this March and will feature Nvidia Corp.'s advanced chips. Damac has already secured land for two additional facilities in both Malaysia and Indonesia, with plans to integrate Nvidia’s state-of-the-art Blackwell chips into the majority of these centers.

Diversification Beyond Real Estate

Traditionally a real estate powerhouse in Dubai, Damac Group has been diversifying into technology and fashion. The Southeast Asian project is part of a broader global expansion strategy for Edgnex, which plans to spend $5 billion to $7 billion on its operations worldwide.

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Since its founding in 2021, Edgnex has focused on creating digital infrastructure capable of supporting high-performance servers needed for data storage and AI services. It currently operates two data centers in Riyadh and Dammam and aims to expand further into Vietnam and the Philippines, with announcements expected in 2025.

Vision for Southeast Asia

Damac’s vision for Southeast Asia includes delivering 550 megawatts of data center capacity across the region, making it a potential $5 billion market for the company, according to Nayar. Thailand, in particular, is seen as a promising market due to its reliable power grid and growing investments in high-tech industries.

Collaboration and Challenges

In Thailand, Edgnex is forming a joint venture with Siam AI, a local security startup and official Nvidia cloud partner. This partnership will allocate data center capacity and secure Nvidia chips to meet the region's growing demands.

While Thailand is making strides to compete with regional leaders like Malaysia and Singapore, challenges such as a shortage of skilled workers remain. However, collaborations like Nvidia CEO Jensen Huang’s recent meeting with Thai Prime Minister Paetongtarn Shinawatra to promote AI education signal steps toward addressing these hurdles.

Southeast Asia’s Data Center Boom

As global demand for AI and cloud services continues to rise, Damac Group’s ambitious plans position it as a key player in Southeast Asia’s growing digital economy. With strong infrastructure investments and strategic partnerships, the region is poised to play a significant role in the future of data centers and technology.

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