Arab News
Trade Arabia, Thurs, Feb 05, 2026 | Sha'ban 17, 1447
UAE to launch AI pilot to boost data centre energy efficiency
United Arab
Emirates: The UAE Ministry of Energy and Infrastructure, Khazna Data Centres,
and Agility announced a pilot to implement Phaidra’s AI technology to accelerate
energy efficiency across data centres and district cooling operations in the UAE.
The announcement was made on the sidelines of the World Governments Summit in
Dubai and builds on a Memorandum of Understanding (MoU) previously signed
between the Ministry and Agility.
The MoU, signed during Abu Dhabi Sustainability Week.
As part of the initiative, the pilot will evaluate the deployment of advanced
control system technology developed by Phaidra, a global leader in artificial
intelligence agents for optimising AI infrastructure.
Phaidra’s AI agents orchestrate the complex power, cooling and workload
management systems that underpin modern AI data centers for peak tokens-per-watt
efficiency — a critical consideration as AI workloads drive higher energy and
performance requirements.
This initiative builds upon Khazna’s existing collaboration with NVIDIA to
accelerate AI infrastructure development across the MEA region.
Khazna is designing and building next-generation AI factories using the NVIDIA
DSX Blueprint — an open and comprehensive reference architecture for large-scale
AI infrastructure.
Khazna’s hyperscale operational expertise will support the deployment and
evaluation of Phaidra’s reinforcement learning agents across selected data
centre campuses.
The pilot will assess the potential to significantly reduce cooling energy
consumption, increase IT capacity, and enhance the resilience and reliability of
mission-critical AI infrastructure, particularly in high ambient-temperature
environments.
The multi-party collaboration enables the Ministry, Khazna, and Agility to
assess opportunities to scale AI-enabled optimisation solutions more broadly
across the UAE, advancing sustainability and energy-efficiency objectives
aligned with the UAE Net Zero 2050 Strategy and the Ministry’s Energy Efficiency
Strategy.
Sharif Al Olama, Undersecretary for Energy and Petroleum Affairs at the UAE
Ministry of Energy and Infrastructure, said: “Enhancing the efficiency of
energy-intensive infrastructure, especially data centers and artificial
intelligence applications, is a key pillar of the UAE’s competitiveness and
sustainability agenda. This partnership comes within the framework of adopting
practical solutions based on advanced technology, which contribute to reducing
energy consumption, enhancing the reliability of the infrastructure, and
advancing the country’s leadership in developing the new generation of
artificial intelligence data centers.”
Tarek Sultan, Chairman of Agility, said: “This initiative underscores the
importance of effective public-private collaboration as AI reshapes global
digital and physical infrastructure. As AI workloads scale, infrastructure
efficiency becomes a binding constraint. Advanced AI control systems allow
complex power and cooling environments to operate as integrated, adaptive
systems - materially improving efficiency, resilience, and long-term economics.
Phaidra brings deep capability in intelligent data center control, and Khazna is
setting the benchmark for sustainable hyperscale data centers. Together, this
collaboration supports the UAE’s ambition to lead at the intersection of
physical infrastructure, digital capability, and sustainability.”
Hassan Alnaqbi, CEO, Khazna Data Centers, said: “AI-driven demand is
fundamentally reshaping the requirements of modern data centers. As the
operators powering tomorrow’s digital economies, we carry a clear
responsibility: to scale sustainably while enabling nations to achieve their
digital and AI ambitions. This pilot reflects that commitment. By advancing
intelligent efficiency through collaboration, we want to ensure that the
infrastructure underpinning AI and digital growth is as sustainable as it is
powerful.”
Jim Gao, CEO, Phaidra, said: “AI infrastructure is fundamentally different from
traditional data centers. The previous technologies that got us here no longer
suffice at gigawatt-scale. Phaidra is humbled by the opportunity to partner
closely with NVIDIA, Khazna, Agility, and the UAE MoEI to pioneer next-gen
digital infrastructure in the MEA region.”