Khazna Data Centers (Khazna) has published its first standalone Environmental, Social and Governance (ESG) Report. The company said the move establishes a baseline for more transparent sustainability reporting, as it scales internationally, while global demand for data centre capacity accelerates.
“As we expand internationally, transparency becomes part of our licence to operate,” said Hassan Alnaqbi, CEO, Khazna Data Centers. “Our responsibility is to be clear about the impacts of our industry, disciplined in how we manage them, and committed to improving performance over time.”
The report marks the first step in Khazna’s long-term ESG reporting journey. It sets out how the company is strengthening the systems, data and governance needed to measure and improve the environmental and social impacts of its operations over time, said a statement from the company.
According to the report, Khazna’s ambition is to cover 100% of its mechanical load with carbon-free electricity by 2035. This makes clean energy procurement a central lever in its decarbonisation approach and a direct response to rising expectations for measurable progress across the digital infrastructure sector, it added.
The report reflect Khazna’s sustainability-by-design approach, which is said to embed environmental performance, resilience and resource stewardship into the way data centres are designed, built and operated.
Operating in the high-temperature environment of the UAE has shaped Khazna’s engineering approach, with efficiency, cooling innovation, water stewardship and operational monitoring treated as core design considerations rather than standalone sustainability initiatives, the statement noted.
In 2025, 27% of the electricity used to power Khazna’s mechanical cooling load was covered by carbon-free electricity through a combination of onsite solar generation and certified clean energy instruments. This figure applies specifically to the electricity used to power cooling systems, one of the most significant areas under Khazna’s direct operational control. Additionally, Khazna said that it aims to cover 50% of its mechanical load with carbon-free electricity by 2030, and 100% by 2035, while continuing to develop a broader decarbonisation roadmap across its Scope 1, Scope 2 and relevant Scope 3 emissions.
The company said it also formalised its greenhouse gas accounting methodology in 2025 and compiled its first companywide inventory aligned with the GHG Protocol, creating a baseline for future target-setting, performance management and reporting maturity.
“Demand for data center capacity is accelerating, driven by unprecedented growth in AI. That growth brings opportunity, but it also brings expectations. Our industry has a duty to move faster on ESG: to reduce environmental impact, strengthen safety and working conditions, and be more consistent and credible in how we measure and report progress. At Khazna, we see ESG as part of operational excellence. It shapes how we make decisions, how we manage risk, and how we earn trust with customers, partners, regulators, and communities,” added Alnaqbi.
The report also outlines how Khazna is improving resource efficiency and operational resilience across its portfolio. New facilities in the GCC are designed to operate at PUE values of 1.5 or below, while those in other markets will be designed to lower PUE values, supported by modular design, high-efficiency cooling systems and real-time energy management platforms. Khazna also reported that 19.8% of cooling water needs were met through recycled water via treated sewage effluent in 2025, while DXB8 achieved Zero Waste Certification following an independent third-party audit verifying a 99.55% waste diversion rate from landfill over a 12-month period.
Beyond environmental performance, Khazna said that the report highlights its work to strengthen safety, capability-building and community engagement as part of responsible growth. In 2025, the company reported a total LTIFR of 0.097 across 20.6m hours, with zero lost time injuries at operational sites, delivered more than 5,000-hours of training, and continued structured volunteering and community partnerships across its operations.
Khazna’s ESG Report covers the 2025 calendar year and has been prepared with reference to GRI Standards, with greenhouse gas emissions calculated according to the GHG Protocol Corporate Accounting and Reporting Standard. As a baseline disclosure, the report will be updated annually as Khazna continues to strengthen ESG governance, data quality, reporting maturity and future assurance readiness, the statement outlined.
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