EnergisationData
UAE data centre power pipeline reaches 2GW as grid advantage meets delivery test
Two gigawatts of dedicated generation now under construction, but corporate PPAs remain unavailable and full 5GW campus plan still on paper.
The UAE has 2GW of generation capacity under construction specifically for data centres, with financial close reached on both projects in 2025. Masdar and Emirates Water and Electricity Company closed $6.1bn of financing for a 5.2GW solar array paired with 19GWh of batteries, designed to deliver 1GW of firm power around the clock and due in 2027. Taqa and Ewec are building a 1GW gas-fired plant at Al Dhafra, financed at $980m, also for data centre supply. Both projects target completion by 2027.
Stargate first phase at 200MW, full campus at planning stage#
Stargate UAE is a 1GW data centre cluster being built by G42 with OpenAI, Oracle, Nvidia, Cisco and SoftBank as partners. Its first 200MW are expected to energise in 2026. The broader UAE-US AI Campus is a master plan covering 26 square kilometres near Abu Dhabi, designed to host up to 5GW of data centres. Everything beyond Stargate's first 200MW remains at planning stage. At full load, 1GW of data centre capacity would consume approximately 8.8TWh annually, almost three times the 3TWh that all UAE data centres used in 2025, according to Wood Mackenzie. The full 5GW campus would add demand equivalent to a quarter of the country's 173TWh total 2025 consumption.
Corporate PPA framework not yet available#
The UAE does not yet permit corporate power purchase agreements or virtual PPAs, according to Wood Mackenzie. Renewables are procured only through utility auctions. For hyperscale operators with clean energy commitments, that limits how they can contract for green power directly. Rival markets that offer corporate PPA structures may close that gap ahead of the UAE.
Grid interconnection queue at 2,300GW in US market#
In the United States, the grid interconnection queue holds approximately 2,300GW of projects, and new AI data centre campuses can wait years for electricity connection. TrendForce estimates that by 2030, global data centre demand could exceed available grid capacity by more than 250GW. The UAE's advantage is co-ordination: state-backed entities plan generation, transmission and much of the demand together, reducing the queue time that developers face in deregulated markets.
Sources1 source across 1 domain
- thenationalnews.comThe NationalUAE consumed 173TWh in 2025, data centres used 3TWh, Masdar and Ewec reached financial close on $6.1bn project for 5.2GW solar with 19GWh batteries delivering 1GW firm power due 2027, Taqa and Ewec building 1GW gas plant at Al Dhafra financed at $980m, Stargate first 200MW expected 2026, full campus
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Every announced MENA data centre and IPP: announced capacity, financing status, EPC awarded, chip licence status, stated energisation quarter, slip to date in quarters.