Tarun Tyagi, Senior Vice President of DAMAC Properties
Fast-becoming one of the largest hyperscale investors worldwide, DAMAC Properties has a desire to continue expanding its presence.
In 2024, the real estate giant further expanded its European data centre reach, as part of its plans to provide scalable and efficient data centres. Most significantly, the company’s data centre arm, EDGNEX Data Centers by DAMAC, acquired land in Madrid to develop a cutting-edge data centre. What made this announcement powerful at the time was that it not only agrees to support AI and high-performance computing (HPC) expansions, but will also contribute to wider sustainability commitments.
Data Centre Magazine spoke exclusively with Tarun Tyagi, Senior Vice President at DAMAC Properties, about how the company will continue strategically expanding across the EMEA region. He speaks about how the company is eager to support the AI and computing needs of hyperscalers, whilst prioritising issues of sustainability and renewables.
Tell us about yourself and your role at DAMAC Properties.
As Senior Vice President of International Operations at DAMAC, I lead multidisciplinary teams in sourcing, evaluating and negotiating high-value opportunities across global markets, driving strategic growth in digital infrastructure, data centres and real estate.
My career spans more than 20 years in acquisition, development, asset management and disposal of diverse asset classes, including residential, office, retail and hospitality. My experience includes leadership roles in major financial hubs like New York, London, Singapore and Dubai, with a proven track record in equity and debt capital markets, IPOs, M&A and global fundraising initiatives.
My expertise lies in aligning our development projects with emerging market demands and technological advancements, ensuring DAMAC remains at the forefront of the real estate and digital infrastructure sectors.
How have you seen the data centre industry evolve over the last 12 months in line with the global technology boom?
Over the past year, the data centre industry has experienced rapid evolution, primarily driven by the global surge in data consumption and cloud services. The pandemic accelerated digital transformation, pushing more businesses to adopt cloud-based solutions, thereby significantly increasing demand for data centres.
Innovations in AI, big data and IoT have further necessitated robust, scalable and highly resilient data infrastructure, leading to a shift towards developing more advanced and sustainable data centre solutions.
DAMAC has focused on designing data centres with flexibility in mind, ensuring they can accommodate varying workload densities as customer needs evolve. For instance, the growing power of video chips and the continual innovation in cooling technologies demand adaptive solutions to meet these changes effectively.
While these evolving customer requirements present challenges, they also open exciting opportunities to innovate and remain at the forefront of this dynamic industry.
Why is EMEA such an important location for the company?
EMEA is a vital region for DAMAC's data centre expansion due to its strong digital infrastructure, growing data demands and its role as a global hub for finance, technology and commerce.
Europe offers robust data protection regulations and advanced connectivity, while the Middle East is experiencing rapid digital transformation, fuelled by government initiatives and increased cloud adoption. Together, these factors position EMEA as a prime location for growth.
Our recent expansion in Spain complements our ongoing investments in the Middle East and Turkey, where data demand continues to surge and adds to our growing presence in Asia-Pacific markets like Bangkok and Indonesia. Our vision is to provide high-capacity, sustainable and innovative data solutions across key global markets, creating long-term value for our clients while supporting regional digital economies.
How is DAMAC positioning itself to cater to the needs of major hyperscalers in the European market?
DAMAC is strategically positioning itself in the European market by developing state-of-the-art data centres that meet the rigorous, high-capacity needs of major hyperscalers.
Our facilities are designed to provide the scalability, reliability and security that hyperscalers require, with an emphasis on adopting the latest in energy-efficient technologies and network architectures. This approach ensures that we can support the expansive and dynamic needs of these large technology entities.
How does EDGNEX Data Centers by DAMAC plan to cater to the needs of both hyperscalers and enterprise clients with its new data centre facilities?
EDGNEX by DAMAC delivers versatile, tailored data centre solutions to meet the needs of hyperscalers and enterprises alike.
Our Madrid facility exemplifies this flexibility, featuring modular designs that support both large-scale and customised configurations. From wholesale colocation to fully managed services, we offer scalable solutions for businesses of all sizes. Spain’s commitment to renewable energy, with 60% of its power sourced from renewables, aligns seamlessly with our sustainability goals.
Strategically located just five kilometres from an Internet Exchange and 10 kilometres from the airport, the Madrid facility boasts exceptional connectivity and infrastructure. With 40 megawatts (MW) of committed power from two substations set for delivery within two years, it offers an unparalleled combination of reliable power and robust fibre connectivity.
Acquired from real estate private equity manager ActivumSG, the 22,000 square-metre facility is slated to commence operations by 2026. This marks a significant milestone in DAMAC’s expansion across Spain and strengthens our position as a leading global data centre operator. Outside the FLAP-D markets (Frankfurt, London, Amsterdam, Paris and Dublin), Madrid is emerging as a key data centre market, with a dynamic landscape and strong growth potential to meet the surging demand for digital infrastructure.
Madrid’s role as a connectivity hub, coupled with Spain’s growing green energy ambitions, makes it the perfect launchpad for EDGNEX’s European expansion. This investment not only addresses the increasing need for efficient digital infrastructure but also reinforces our commitment to delivering sustainable and innovative data solutions in critical global markets.
What role do you see your new data centres playing in supporting advanced HPC and AI capabilities across the EMEA region?
Our new data centres are set to play a pivotal role in supporting HPC and AI-driven applications across the EMEA region. By providing high-density computing environments, enhanced by energy-efficient cooling systems and robust direct-connect networking capabilities, these facilities are equipped to handle the intense workloads that HPC and AI require.
This support is crucial for advancements in areas such as machine learning, research and complex data analytics, where processing speed and data integrity are paramount.
How does DAMAC plan to prioritise sustainability and renewable energy in the development and operation of its data centres?
Sustainability is at the heart of our data centre development and operations. We are committed to integrating renewable energy sources and deploying energy-efficient technologies to minimise environmental impact. This includes leveraging solar energy as a primary power source in regions with abundant sunlight and exploring advanced solutions like battery storage, fuel cells and renewable grid power to meet our energy demands sustainably.
Our approach is guided by frameworks like the UAE’s 2030 Green Energy Agenda, ensuring our projects align with the nation’s sustainability and innovation goals. Site-specific factors, such as geography, play a key role in determining optimal energy solutions, with our Lead Design Consultants continuously evaluating alternative energy technologies.
One of our notable innovations is the Adiabatic Cooling System, implemented in Riyadh City. By reducing the ambient temperature around air-cooled chillers from 48°C to less than 37°C year-round, this system has achieved a 21% reduction in energy consumption and optimised water usage efficiency (WUE) at 0.3 through effective water recirculation.
These initiatives reflect our unwavering commitment to sustainability, ensuring our data centres operate efficiently while contributing to shared prosperity for our stakeholders and the environment.
Moving forward, how will DAMAC continue to invest in data centres?
DAMAC is on a dynamic growth trajectory, consistently exploring and evaluating opportunities across diverse geographies to disrupt the data centre market with agility and innovation. Our strategy prioritises identifying emerging markets and investing in next-generation facilities that integrate cutting-edge technologies like liquid cooling and AI-driven management systems to meet the evolving demands of the digital economy.
Exciting developments include our planned expansion into APAC markets, where rapid digital growth positions us as a key player in global data infrastructure. This includes our recent investment of US$1bn (32 billion Baht) in overall upcoming data centre projects in Thailand to meet the rising demands of advanced AI technology and data processing capabilities, in a strategic JV with ProEn. In total, we have committed to 55MW to support digital transformation in APAC.
We are also advancing strategic partnerships, such as our joint venture with Vodafone to build a state-of-the-art data centre in Izmir, Türkiye. With an estimated US$100m investment and a capacity of 6MW, this facility is set to be operational by 2025, supporting Türkiye’s digital transformation.
In the Middle East, EDGNEX is spearheading significant projects, including multi-tenant colocation facilities delivering 55MW Saudi. Phase 1 in Riyadh, with a committed capacity of 5.2MW fully let, is nearing operational status, while Dammam is set to launch with limited white space availability. We are also planning additional capacity expansions in Saudi Arabia and new locations to support our long-term growth strategy.
DAMAC remains committed to delivering high-quality, scalable and sustainable data centre solutions while exploring collaborative opportunities through partnerships and joint ventures to strengthen our global footprint.
To read the full story in the magazine click HERE
Explore the latest edition of Data Centre Magazine and be part of the conversation at our global conference series, Tech & AI LIVE and Data Centre LIVE.
Discover all our upcoming events and secure your tickets today.
Data Centre Magazine is a BizClik brand