Khaleej Times reports that Khazna Data Centers, a developer of artificial intelligence infrastructure in the United Arab Emirates, has integrated climate risk assessments into its facility planning. According to the company’s first environmental, social, and governance report, published this month, these evaluations address extreme heat, flooding, and water stress. The findings are being applied to the initial 200-megawatt development at the UAE-US AI Campus in Abu Dhabi, influencing decisions regarding site layout, drainage, and cooling systems.
Elisabetta Baronio, the ESG Director at Khazna, explained to Khaleej Times that the environmental footprint of a data centre is determined before operations begin. She noted that factors such as location, materials, and supplier choices shape the facility's impact. The company is preparing for conditions where temperatures exceed 45°C or heavy rains disrupt operations, ensuring that electricity and cooling systems remain functional around the clock. This approach reflects a broader trend in the region, where operators are considering environmental pressures years before new facilities become operational.
The International Energy Agency provides context on the global scale of this challenge. Its recent analysis indicates that capital expenditure for major technology companies exceeded $400 billion in 2025, with a projected 75% increase in 2026. This surge in investment is driving rapid expansion of AI-focused data centres, which have more than tripled in capacity over the past 18 months. The IEA notes that while efficiency per AI task is improving, the sheer volume of energy-intensive use cases is causing total electricity demand to soar. In 2025, data centre electricity demand grew by 17%, significantly outpacing the 3% growth in global electricity consumption.
Khaleej Times highlights that the physical constraints of AI computing are intensifying. As more powerful equipment is concentrated in smaller spaces, heat generation increases, placing additional strain on cooling infrastructure. Baronio stated that power distribution must support higher loads while maintaining the redundancy required for mission-critical facilities. The IEA adds that supply chains for components like gas turbines and transformers have tightened, creating bottlenecks that limit the rate of expansion. Consequently, operators are adopting new approaches, including increased investment in renewable energy and nuclear power, to meet the growing energy demands of the AI sector.