In The Spotlight
Shell Lubricants showcased a highly specialised proof-of-concept vehicle at ADIPEC 2026 in Abu Dhabi.
Rethinking EV efficiency with advanced thermal management
The automotive industry faces critical hurdles surrounding energy efficiency, vehicle weight, and charging infrastructure, as the global transition toward electric mobility accelerates.
Historically, manufacturers addressed range anxiety by integrating increasingly larger battery packs. However, this approach inherently adds substantial weight, compromising overall driving efficiency. Today, the focus is shifting toward an alternative solution: advanced thermal management. By regulating heat generation more effectively, engineers can extract greater performance and faster charging capabilities from smaller, more compact battery systems.
Demonstrating the viability of this approach, Shell Lubricants showcased a highly specialised proof-of-concept vehicle at ADIPEC 2026 in Abu Dhabi. The showcase highlighted how next-generation fluid technologies can fundamentally alter the physics of electric vehicle (EV) charging, negating the need for oversized battery architectures.
Overcoming the charging bottleneck
Presented as the Triple 10 Challenge car, the concept vehicle serves as a working exploration into the future of electric mobility. Rather than equipping the vehicle with a cumbersome battery pack, engineering teams combined a compact energy storage system with pioneering thermal fluid technology. This architecture is designed specifically to manage heat distribution across the vehicle during high-stress operations.
The project was anchored around three defining ambitions:
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Achieving a charging cycle from 10% to 80% in under 10 minutes.
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Reaching a driving efficiency metric of 10 kilometres per kilowatt-hour (km/kWh).
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Targeting a total lifecycle carbon footprint of approximately 10 tonnes of CO2 equivalent (CO2e).
During testing, the vehicle charged from 10% to 80% in just 9 minutes and 54 seconds. Notably, this was achieved using a standard 175 kW public charger, adding 24 kilometres of driving range for every minute plugged in. The design targets 10 km/kWh driving efficiency, representing an improvement of more than 30% compared with many current-generation electric vehicles.
Next-generation thermal fluid technology
At the core of this engineering breakthrough is the Shell Recharge Thermal Fluid. This specialised dielectric fluid facilitates a dual-cooling approach that manages thermal loads dynamically. It enables direct immersion cooling for battery cells, ensuring uniform temperature regulation, while providing indirect cooling for powertrain components, including the electric motor and power electronics. This supports a simplified cooling architecture, reducing the thermal stress typically caused by fast charging.
Addressing this development, Haytham Yehia, General Manager, Shell Lubricants Middle East, Egypt and Central Asia, stated: "The Shell Triple 10 Challenge concept car is a powerful example of how we're taking our expertise in advanced fluids beyond traditional lubrication. We're increasingly looking at how our technology can help customers address challenges around efficiency, performance and thermal management. For the Middle East, where we see growing opportunities across mobility, digital infrastructure and industrial applications, innovations like these demonstrate the value of combining Shell's global technology capabilities with strong regional partnerships."
Expanding cooling solutions across industries
The implications of sophisticated thermal management extend beyond the automotive sector. Alongside the concept car, the showcase featured comprehensive portfolios of coolants and immersion cooling solutions tailored for broader industrial demands. As global reliance on artificial intelligence and cloud computing intensifies, data centres and battery energy storage systems face unprecedented cooling requirements. Specialised fluids are becoming essential to maintain operational reliability.
Aysun Akik, Shell Lubricants’ Vice President of New Business Development and Global Key Accounts, highlighted this potential: "It's exciting to bring the Triple 10 Challenge concept car to ADIPEC and give visitors the opportunity to see the technology up close. What makes this concept so interesting is how much difference effective thermal management can make to EV performance. We've also had some great conversations with customers and partners about how advanced cooling technologies can support their own operations, and we're looking forward to building on those discussions beyond ADIPEC."
The exhibition coincided with the company marking 20 consecutive years as the world's number one finished lubricants supplier, according to Kline & Company's 2026, 24th Edition Global Lubricants Market Analysis and Assessment. Through ongoing technical innovation, advanced fluid capabilities continue to address changing requirements across mobility, energy, and digital infrastructure.
Artificial intelligence (AI), digital infrastructure and energy resilience took centre stage on the third day of ADIPEC 2026.
Scaling AI in energy operations at ADIPEC 2026
The global energy landscape is undergoing a profound transformation, moving rapidly from digital experimentation towards the enterprise-scale deployment of artificial intelligence.
Driving this shift is an urgent need to strengthen productivity, bolster cyber resilience, and ensure long-term security in a data-hungry world. This transition was the central focus on the third day of ADIPEC 2026 in Abu Dhabi, where technology leaders mapped out the definitive path for industrial AI adoption.
Building an AI-ready energy system
Realising the full potential of machine learning depends on robust data foundations and updated operating models. Helmut von Struve, CEO, Siemens UAE & Middle East, outlined the objective: "The greatest value from an AI perspective is where industries, and also the essential services we depend on, can be improved. It is really about how we can make essential operations more productive and reliable, and how we can make them more resource-efficient."
This requires significant cross-sector collaboration. Discussing this convergence, John Gilley, CEO, Kent, stated: "We are seeing that it is not just about energy; it is about connecting the world's appetite for data with the world's appetite for energy. Each country wants to have control of its own data and energy."
Addressing workforce anxieties regarding intelligent systems, Ashish Koshy, CEO, Inception42, firmly argued: "It has to be not AI versus humans, but humans augmented by AI."
Sovereignty, security and community inclusion
As digital infrastructure merges with critical energy assets, data ownership has become paramount. Dennis Jol, CEO, AIQ, highlighted how essential this foundation is for progress: "Collaboration moves at the speed of trust. If we look at the UAE ecosystem, it is a five-layer cake: energy, data, infrastructure, sovereign cloud and the models we have access to, which maintain security. We sit on top of that. Ultimately, data has to belong to the customer, and customers have to trust us. Cybersecurity rules need to be enhanced. Sovereignty does not need to be national; it just needs to exist within your own framework."
Simultaneously, expanding physical computing infrastructure faces public scrutiny. Joseph McMonigle, President, Global Center for Energy Analysis, stressed the importance of community engagement: "I do not think it is going to be possible to avoid moving forward with AI and digital computing, but the industry needs to be much more effective and change its strategy. It needs to pay more attention to the local level. There needs to be some kind of inclusion.”
Attracting capital for complex infrastructure
Deploying these digital solutions at scale requires massive private investment. Tarek El Molla, Founder & Principal Consultant, Luminant Energy Consultancy, and former Minister of Petroleum & Mineral Resources Egypt, detailed the financial hurdles: "Unless governments are more tolerant and open, and offer more incentives for the use of infrastructure, helping secure buy-in from the private sector and multinationals, these projects will not succeed in attracting investment. This is not investment that is easily raised. Therefore, I think that in the coming years, policies will become more relaxed, inviting more private-sector capital."
This shift in perspective is gradually gaining traction among global investors. Ambassador Martina Strong, Region President, Central Europe and the Middle East, Bechtel, confirmed: "Markets are already looking at the proposition of investing in large, complex infrastructure very differently from how they did, certainly in this part of the world."
Real-world operational deployment
The expanded AI Zone provided practical demonstrations of this industrial shift. Instead of isolated concepts, companies showcased intelligent tools embedded directly into the energy value chain:
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Stone Ridge Technology introduced a pioneering AI-native orchestration layer for its ECHELON simulation software, accelerating subsurface reservoir management.
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Honeywell presented its Forge Upstream platform, allowing operators to utilise advanced analytics for fully autonomous upstream operations.
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EY and Gecko Robotics demonstrated robots that climb, crawl, swim, and fly to inspect critical pipelines, predicting equipment failures.
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Sinaha exhibited Autonomous Mobile Robots coordinated via a proprietary system, with UAE-based manufacturing commencing in 2027.
The Abu Dhabi Department of Energy (DoE) has partnered with Evolve Fuels AG, a Swiss-based company operating under the Smartenergy Group, to evaluate the Emirate’s potential as a global hub for synthetic aviation fuels.
Driving the future of sustainable aviation fuel
As the global aviation industry faces mounting pressure to reduce its carbon footprint, synthetic sustainable aviation fuel (e-SAF) is rapidly emerging as a critical pathway to decarbonisation.
Manufactured using a combination of renewable electricity, hydrogen, and captured carbon dioxide, e-SAF offers a viable alternative to traditional fossil fuels. With new fuel requirements in the UK and Europe set to drive up demand for clean alternatives, the market for e-SAF is on the cusp of significant expansion over the coming years.
Recognising this shift, major energy players are positioning themselves to meet future supply needs. Against the backdrop of the ADIPEC 2026 conference, a strategic collaboration agreement was signed on 3 November 2026 to explore large-scale e-SAF production. The Abu Dhabi Department of Energy (DoE) has partnered with Evolve Fuels AG, a Swiss-based company operating under the Smartenergy Group, to evaluate the Emirate’s potential as a global hub for synthetic aviation fuels.
Core pillars of the strategic collaboration
The partnership will leverage Abu Dhabi’s vast renewable energy resources, alongside its established capabilities in hydrogen and carbon capture, to assess the technical and commercial feasibility of local e-SAF production.
To facilitate this transition, the agreement is structured around three primary areas of cooperation:
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Connecting investors: Linking potential partners and investors in Abu Dhabi with Evolve Fuels’ expansive international project pipeline.
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Regulatory frameworks: Supporting the development of robust policy and regulatory environments necessary to foster an e-SAF industry.
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Strategic roadmapping: Designing a comprehensive strategy and roadmap for the eventual production of synthetic fuels within the Emirate.
A newly established joint steering committee will oversee these initiatives, assessing infrastructure demands, necessary technology transfers, and the development of local workforce capabilities. This phase will also involve identifying future industry partners and aligning prospective production facilities with actual market demand.
Aligning vision with market demand
For Abu Dhabi, the initiative represents a prime opportunity to diversify its industrial development and attract international investment. Established in 2018, the DoE is focused on transforming the Emirate’s energy sector through sustainable technologies while establishing a prosperous, low-carbon economy.
H.E. Abdulaziz Mohammed Al Obaidli, Director General of Regulatory Affairs at the Abu Dhabi Department of Energy, highlighted the importance of laying solid groundwork: “Sustainable aviation fuel has the potential to play an important role in the future of aviation. This agreement gives us an opportunity to assess how Abu Dhabi’s energy resources and industrial capabilities can support the development of this market, while creating opportunities for investment and technology partnerships. Our focus is on building the right regulatory and commercial foundations, so that any future projects are competitive, practical and able to deliver long-term value.”
Evolve Fuels functions as an investment platform designed to aggregate and accelerate renewable fuels of non-biological origin. Backed by Smartenergy—a firm founded in 2011 that specialises in green energy assets across the aviation, maritime, and data centre sectors—the company brings substantial market expertise to the region.
Horst H. Mahmoudi, CEO and Executive Chairman of Smartenergy, explained the strategic timing of the partnership: “Evolve Fuels is an investment platform that, starting in Europe, aggregates and accelerates e-SAF projects at a time when the market needs scale and speed. Through this agreement with the Department of Energy, we are opening our project pipeline to Abu Dhabi investors and partners, while jointly evaluating the potential for e-SAF production in Abu Dhabi, building on the Emirate’s renewable energy, PtX and carbon capture resources. Our goal is to position Abu Dhabi as a dominant global player in a market that is set to grow rapidly, as e-SAF quotas, starting in Europe and the UK, take effect.”
The next phase of development
Moving forward, collaborative efforts will focus on pinpointing priority opportunities and evaluating regulatory requirements. Any definitive investments or physical production facilities will be subject to subsequent, separate agreements. These future steps will depend heavily on further evaluations to guarantee that any new infrastructure aligns perfectly with long-term industrial priorities and remains commercially viable in a competitive global landscape.
TITAN Egypt has expanded its strategic partnership with SolarizEgypt, a prominent provider of renewable energy solutions that specialises in solar power development and generation.
TITAN Egypt expands solar footprint to 21.45 MW
Egypt's industrial landscape is undergoing a transformation, with energy-intensive sectors actively seeking cleaner power sources.
Leading this transition within heavy manufacturing, TITAN Egypt has expanded its strategic partnership with SolarizEgypt, a prominent provider of renewable energy solutions that specialises in solar power development and generation. This enhanced collaboration involves a newly signed agreement to add 10 MW of solar power capacity to the existing project at the Beni Suef cement plant, increasing the total planned capacity to an impressive 21.45 MW.
Scaling renewable energy in heavy manufacturing
The expansion builds directly upon the initial power purchase agreement signed by both organisations in June 2026. By integrating large-scale solar infrastructure into a traditionally high-emission sector, the initiative serves as a blueprint for decarbonising heavy industry. Once the expanded project is fully completed and commercially operational, it is expected to generate approximately 43.2 GWh of electricity annually. This substantial output will help meet a vital portion of the Beni Suef plant's electricity requirements through renewable sources, significantly reducing the carbon emissions associated with traditional electricity consumption.
Key details of the solar infrastructure expansion include:
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An additional 10 MW of solar power integrated into the grid.
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A total combined planned capacity reaching 21.45 MW for the Beni Suef facility.
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An expected annual electricity generation of 43.2 GWh upon full project completion.
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A targeted reduction in carbon emissions associated with the plant's electricity consumption.
Driving competitiveness through sustainable operations
For energy-intensive industries such as cement production, transitioning to clean energy is not merely an environmental obligation but a commercial imperative. Amr Reda, CEO of TITAN Egypt, highlighted the strategic importance of this development:
“Expanding our partnership with SolarizEgypt represents another important milestone in our efforts to advance more sustainable operations and strengthen our energy efficiency. We see investment in renewable energy as a key driver of our competitiveness and a practical way to reduce our carbon footprint, enabling us to sustain our growth amid the rapid changes shaping the industrial sector.
“This expansion builds on our ongoing sustainability investments and reflects our commitment to translating our climate ambitions into tangible action. It also reinforces our commitment to supporting the development and competitiveness of Egypt's industrial sector through the adoption of advanced technologies and strategic partnerships that deliver lasting economic and environmental value,”
This ambitious project is intrinsically linked to TITAN Egypt's ongoing efforts to improve the sustainability of its industrial operations and maximise resource efficiency. The organisation continues to advance various dedicated initiatives in this area. Beyond solar power integration, the company is actively increasing its utilisation of alternative fuels and developing lower-carbon cement products. These local sustainability efforts align seamlessly with the broader TITAN Group's global strategy, which places a heavy focus on continuous innovation, long-term business competitiveness, and robust environmental programmes.
Fostering strategic partnerships for clean energy
The collaboration also underscores the critical role of private-sector investment in advancing the transition to more sustainable manufacturing. Mohamed El Foly, Chief Commercial Officer of SolarizEgypt, emphasised the broader implications of the agreement:
“We are pleased to strengthen our partnership with TITAN Egypt and expand the scope of a project that demonstrates the significant potential of solar energy to support the industrial sector's power needs. This expansion reflects the mutual trust between our two companies, as well as the growing recognition of renewable energy as a practical solution for improving operational efficiency and advancing sustainability goals.
“We look forward to building on this collaboration and leveraging our expertise in solar project development to deliver solutions tailored to the needs of energy-intensive industries. We also hope this project will serve as a successful example of how strategic partnerships can accelerate the adoption of clean energy across Egypt,”
This expansion significantly supports Egypt's national efforts to increase the share of renewable energy within its overall energy mix. By championing clean power solutions, such strategic alliances strengthen the competitiveness of the Egyptian industrial sector. Deploying this 21.45 MW solar infrastructure highlights a definitive pathway for regional and international markets, proving that the heavy manufacturing industry can effectively minimise its environmental footprint while maintaining operational excellence and securing a sustainable, lower-carbon future.
Critical advancements in operational visibility are taking centre stage at ADIPEC 2026.
Advancing energy sector resilience with smart surveillance
Safeguarding critical infrastructure has never been more vital for the global energy sector.
From onshore processing plants to isolated offshore rigs and renewable energy installations, operators face immense pressure to maintain safe, resilient operations. A core component of this resilience is operational visibility. Achieving comprehensive oversight in harsh, hazardous, and constantly evolving environments, however, presents significant technological hurdles.
Energy facilities are notoriously complex. Operators must navigate the challenges of securing reliable imagery in low-light conditions, identifying safety breaches without relying on continuous manual observation, and extending surveillance to locations where new data cabling is financially prohibitive. Addressing these pain points requires a shift towards intelligent, easily deployable technology.
Overcoming visibility hurdles with adaptive infrared
A primary difficulty in industrial surveillance is capturing clear footage at night. Industrial scenes are filled with reflective pipework, metallic surfaces, and equipment positioned at varying distances. Traditional fixed infrared (IR) illumination frequently struggles in these settings, overexposing nearby objects and creating glare whilst leaving crucial background details obscured in darkness.
Modern surveillance systems overcome this through adaptive IR technology. By automatically adjusting illumination in response to specific scene conditions, subject distance, and surface reflectivity, these systems deliver consistent imagery. This is crucial for offshore facilities. Clearer visual evidence facilitates reliable remote verification, allowing teams to assess a situation and determine whether a physical intervention is necessary before committing resources to a site visit.
Enhancing site safety through edge-based analytics
The days of relying solely on personnel to monitor screens are fading. Edge analytics are transforming cameras from passive recorders into proactive safety tools. By processing video data directly at its source, these intelligent cameras reduce bandwidth demand and alleviate the load on central servers.
More importantly, edge analytics automatically identify specific events and generate instant alerts. Key capabilities include:
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Personal protective equipment (PPE) detection, ensuring staff are wearing hard hats, goggles, gloves, and high-visibility clothing.
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Intrusion and perimeter breach detection in restricted zones.
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Identification of abandoned objects or the unauthorised removal of critical assets.
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Wrong-direction monitoring to control traffic flow.
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Automated counting of people and vehicles to monitor site occupancy.
Configured for specific zones, PPE detection alerts operators when a safety protocol is breached. This reduces reliance on manual monitoring, generates data for rapid safety reviews, and provides visual evidence to complement established site procedures.
Leveraging private 5G for flexible deployment
As energy facilities evolve and temporary work areas are established, surveillance coverage must adapt. Historically, expanding a network meant installing costly fixed data cabling. Today, integrating private 5G connectivity into surveillance networks provides operators with unprecedented flexibility.
Cameras equipped with 5G can be deployed rapidly, offering a practical solution for difficult-to-cable locations. This ensures comprehensive coverage as site requirements change and allows operators to maximise returns on existing private 5G network investments.
Showcasing surveillance innovations at ADIPEC 2026
These critical advancements in operational visibility are taking centre stage at ADIPEC 2026, where Synectics is demonstrating its latest COEX camera innovations. With over four decades of engineering expertise for harsh environments, Synectics is highlighting how targeted technology investments strengthen resilience across the energy sector.
Darren Alder, Head of Global Energy at Synectics, comments: “More resilient energy operations start with a clearer picture. Operators need reliable information about what is happening across their facilities, including locations where monitoring has been difficult or costly to establish.”
He further notes the practical implications of these upgrades: “That means improving image quality, drawing attention to potential safety issues and making cameras easier to deploy where they are needed. Improvements in these areas help teams make informed decisions sooner and reduce manual effort. At ADIPEC, we’ll show operators what that looks like in practice and how to get more value from their surveillance and network investment.”
Industry professionals can view these COEX developments first-hand by visiting Synectics at ADIPEC from 2-5 November 2026 in Abu Dhabi on Stand 8438.
ALEC FITOUT has inaugurated a state-of-the-art 7,500m² bespoke fabrication facility in Ras Al Khaimah.
ALEC FITOUT opens Ras Al Khaimah facility
The Middle East's luxury hospitality, cultural, and entertainment sectors are experiencing unprecedented development, driving demand for complex architectural finishes and localized production capabilities.
Addressing this regional shift, interior fit-out specialist ALEC FITOUT has inaugurated a state-of-the-art 7,500m² bespoke fabrication facility in Ras Al Khaimah. The strategic investment substantially scales the firm’s domestic manufacturing capacity, enabling it to deliver intricate joinery, metalwork, decorative features, and large-scale immersive installations across the UAE, Saudi Arabia, and the wider region.
Beyond expanding output, the new hub generates over 200 specialist employment opportunities spanning design, engineering, machine operation, and traditional craft disciplines. By anchoring high-value fabrication within the emirate, the facility directly supports the objectives of the federal "Make it in the Emirates" programme. It strengthens domestic supply chain resilience, diminishes reliance on imported architectural elements, and provides the industrial backing required to execute fast-track luxury schemes.
Strategic proximity to landmark tourism developments
The decision to situate the plant in Ras Al Khaimah directly addresses the logistics required for colossal projects underway across the northern emirates. Chief among these is Wynn Al Marjan Island, an ambitious integrated resort development that stands as one of ALEC FITOUT’s largest delivery contracts to date.
Delivering major interior packages for properties of such magnitude requires stringent dimensional control, continuous quality oversight, and rapid turnaround times. By stationing advanced machinery within close physical proximity to the site, the contractor secures immediate fabrication support. This ensures that custom elements for hotels, museums, ultra-prime branded residences, and experiential venues move seamlessly from digital drawings into finished physical installations.
Integrated machinery and advanced production lines
To execute highly intricate designs, the facility integrates 24 specialized machines covering every phase of bespoke fabrication. The infrastructure includes comprehensive timber processing systems, high-specification joinery, and an autonomous metal fabrication division:
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Computerized numerical control (CNC) machining and automated precision cutting units
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Dedicated timber profiling lines, modern veneer-pressing equipment, and specialist surface-finishing systems
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Full-scale metalworking capabilities, encompassing laser cutting, sheet bending, drilling, and high-tolerance welding
This equipment allows the manufacturer to craft bespoke architectural doors, wall panelling, tailored loose furniture, and structural metal components without depending on third-party sub-contractors.
Introducing 3D printing to regional interior fit-out
A key technological milestone within the workshop is the integration of industrial-grade 3D-printing systems. Adding additive manufacturing provides designers and contractors with an agile alternative to conventional tooling methods. Complex architectural mock-ups, custom exhibition fixtures, decorative facades, and unconventional geometric features can now be prototyped and fabricated with notable velocity and microscopic accuracy.
The convergence of traditional artisanal skills and digital manufacturing methods establishes a versatile production workflow tailored to luxury architecture.
“Across our pipeline, we are seeing greater emphasis on the creation of destinations that offer something genuinely distinctive. These projects demand specialist skills, sophisticated prototyping, exacting quality control and the ability to translate ambitious design concepts into finished spaces. Bringing 3D printing, advanced joinery, metalworks and specialist finishing together under one roof gives ALEC FITOUT a unique regional capability and enables us to deliver the level of craftsmanship, precision and innovation for which the UAE continually strives,” said Laurent Farge, Managing Director of ALEC FITOUT.
As destination architecture across the Gulf becomes increasingly detailed and experiential, localized fabrication facilities are set to play a pivotal role in maintaining project timelines and elevating execution standards.
The Middle East has emerged as the world's most cost-competitive region for data centre construction, offering a critical advantage as global demand for artificial intelligence (AI) infrastructure surges.
Middle East ranked most cost-competitive for data centre builds
The Middle East has emerged as the world's most cost-competitive region for data centre construction, offering a critical advantage as global demand for artificial intelligence (AI) infrastructure surges.
According to the 10th edition of Turner & Townsend's Data Centre Construction Cost Index for 2026, the region's average build cost stands at $9.93 per watt, undercutting major markets across Europe, Asia, and North America.
The index, evaluating 62 international markets based on a standard 60-megawatt (MW) facility design, highlights a stark contrast in construction expenses. Tokyo remains the most expensive market to build a data centre, commanding $18.28 per watt. It is closely followed by Zurich at $15.93, Singapore at $15.39, and Silicon Valley at $15.01 per watt. Conversely, the United Arab Emirates (UAE) ranks among the top five most affordable markets globally, sitting at 58th place with an average cost of $9.20 per watt. While cities like Shanghai ($5.79) and Mumbai ($6.83) offer lower pricing, the Middle East as a wider region averages out as the most financially viable hub for hyperscale development.
Driving sovereign AI and digital capacity
The data centre sector has evolved from a niche commercial real estate segment into a dominant driver of global construction activity. This growth is heavily fuelled by AI, requiring gigawatt-level power and advanced liquid cooling systems to support high-density racks. This exponential demand is drawing massive capital investment into the Middle East, where government-backed initiatives actively support digital expansion.
Alan Coary, Director and Data Centre lead for the Middle East at Turner & Townsend, highlighted the strategic moves across the region. "Saudi Arabia's HUMAIN initiative and the UAE's continued investment in AI and hyperscale data centre development through G42 and Khazna are transforming the region's computing capacity and positioning it as a globally competitive AI hub," he stated.
Overcoming global supply chain and power constraints
While the Middle East enjoys a cost advantage, the broader global market is grappling with escalating expenses and delivery hurdles. The Turner & Townsend report notes that 52 per cent of survey respondents experienced cost increases of over 6 per cent this year, while 20 per cent reported inflation exceeding 15 per cent. With more than half of respondents anticipating their 2027 projects will be dedicated to AI workloads, pressure on supply chains and skilled labour is intensifying.
"However, rising material and labour costs continue to create challenges globally, while access to power, specialist equipment and skills continue to create bottlenecks," the report noted. "Data centres are also subject to increasing scrutiny, with political and community consent essential to delivery."
Power availability remains the most critical barrier to entry worldwide. Globally, 56 per cent of industry respondents identified securing sufficient power as the primary obstacle to delivery.
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Connection delays: 52 per cent of respondents revealed utility connections typically take one to two years to establish.
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Severe backlogs: 32 per cent reported waiting periods stretching beyond two years.
The push for larger, gigawatt-scale facilities has only amplified these delays, adding a cost premium to complex mega-projects.
Navigating interconnected industry challenges
Global capital expenditure on data centres has already reached an estimated $800 billion annually, with forecasts suggesting it could climb to $1.8 trillion by 2050. As operators race to build complex facilities, success requires a holistic development approach extending beyond individual construction sites.
Paul Barry, Data Centre Construction Cost Index Lead at Turner & Townsend, emphasised the need for strategic collaboration. "Success will ultimately depend on the industry's ability to think beyond the boundaries of a single project," Barry explained. "Power, water, supply chains, labour, planning, sustainability and data sovereignty are becoming interconnected challenges that require coordinated solutions."
By maintaining its competitive build costs, the Middle East is well-positioned to capitalise on this global digital boom. However, sustaining this momentum depends on effectively managing universal challenges surrounding power supply and specialised labour.