Tech

Dubai’s Damac to invest $990m in data centres in Germany

August 23, 2022, 10:40 AM

Damac's data centre company Edgnex has started work on a Riyadh facility

UAE property developer expanded into data centre sector last year
Continues real estate development in Europe and North America
Growing in luxury goods sector having acquired Swiss jewellery brand

Dubai-based conglomerate Damac Group is planning to invest $990 million in data centres and technology acquisitions in Germany.

The company is currently on a fact-finding expedition in the European country to identify opportunities.

“It’s a very interesting time now in Germany, especially for future-oriented industries and the country has a lot of opportunities in sectors such as data centres,” Hussain Sajwani, chairman of the Damac Group, said.

“I see a lot of opportunity and potential, especially in Eastern Germany that I would like to explore and learn more.”

The Dubai family business is best known for its property developments but last year it expanded into the data centre sector with the launch of Edgnex.

In October 2021, Edgnex bought a stake in Irish data centre firm Dataplex and in March 2022 began work on a facility in Riyadh.

Damac is planning to spend $1 billion expanding its data centre business through Edgnex and is investing $100 million in its D-Labs subsidiary, which aims to develop digital properties in the metaverse.

Designer residences: Damac’s Cavalli Tower in Dubai

Jewellery partnerships

As part of its expansion plans, the company told AGBI in June it is looking at real estate projects in Europe, as well as seeking more partnerships with jewellery brands in Asia, the US and Europe.

“Damac Group is on an expansion curve, expanding across geographies and sectors,” Niall McLoughlin, senior vice president at Damac, said.

“We are expanding in all aspects of property – residential and commercial luxury and uber-luxury buildings, resorts and hotels, logistics and data centres.”

The private developer has projects in Saudi Arabia, Qatar, Lebanon and Jordan. Its first European project is the Damac Tower Nine Elms in London.

In May it announced its first US development, buying a $120 million beachside plot in Miami. McLoughlin confirmed that Damac was looking at other opportunities in North America, particularly in Canada.

“We are in the UK, the US, Toronto and the Middle East and looking keenly towards expanding to Copenhagen and Germany in Europe subsequently, as well as further expansion in the region,” McLoughlin said.

The developer is also expanding into the fashion sector. It bought Italian fashion house Roberto Cavalli in 2019 and acquired the bankrupt Swiss jewellery brand de Grisogono in May. It is now offering de Grisogono-branded luxury apartments next to Safa Park in Dubai.

“The group aims to expand within the fashion industry, with accelerated plans to enhance the brands. We are looking to partner with jewellery companies in Asia, the US and Europe,” McLoughlin said.

Established in 2002, the Dubai firm has developed nearly 40,000 homes and has partnered with brands such as the Trump Organization, Versace, Rotana, Paramount Hotels & Resorts and Radisson Hotel Group.