Khazna invests in US infrastructure following UAE's $1.4 trillion commitment
- Khazna is considering investing in the US as part of the UAE's long-term economic strategy.
- The company aims to establish a foothold in the US artificial intelligence infrastructure market.
- This move reflects the growing interdependence between the UAE and the US in technology and economic sectors.
The UAE is looking to strengthen its position in artificial intelligence and data management by making significant investments in the United States. In a groundbreaking move, the UAE has pledged to invest $1.4 trillion in the US economy over the next decade, with Khazna, the country's leading data center firm, expressing interest in entering the US market. Khazna's Chief Executive, Hassan Alnaqbi, emphasized the necessity of having a presence in the US to compete effectively in AI infrastructure. The firm already collaborates with major hyperscalers like Amazon Web Services and Microsoft and has established a robust operational capacity with G42, its majority shareholder. The relations between the UAE and the US have become increasingly vital for the UAE's ambitions in AI technology. As the country attempts to digitize and enhance its technological capabilities, having reliable partners and infrastructures is essential. Khazna was formed in 2012 amid the UAE's push to digitize its economy and create local data storage solutions. With G42 taking a controlling stake in Khazna, the firm is set for expansion both locally and internationally. In 2022, Khazna removed Chinese components from its data centers to comply with US demands, reflecting the shifting dynamics in global trade and technological partnerships. The firm is also exploring opportunities in other regions, including Kenya, Saudi Arabia, Turkey, and Europe, showcasing its commitment to being a key player in the global data center market. As the AI sector expands, the demand for data centers is poised to rise, prompting Khazna to adapt and evolve. On the other hand, hyperscalers such as Microsoft are experiencing a slowdown in their expansion plans. Microsoft announced a halt to several of its data center projects, indicating a potential shift in the market dynamics. Concurrently, rising competition from lower-cost Chinese-developed AI platforms raises questions about the future demand for data centers. With the landscape of AI constantly changing, Khazna and its parent company G42 will need to remain agile in their strategies and investments to maintain a competitive edge.