Recently, DAMAC Properties, led by UAE billionaire Hussain Sajwani, announced a $20 billion investment in U.S. data centres during a high-profile event with President-elect Donald Trump. The investment reflects a significant move by DAMAC, known for its real estate developments, into the rapidly growing digital infrastructure sector. Sajwani, a close business associate of the Trump family, has built a reputation for leveraging strategic partnerships to expand into new markets.

This announcement comes at a time when the UAE is strengthening its position as a global hub for blockchain technology and cryptocurrency mining. Through initiatives like the Emirates Blockchain Strategy and advanced regulatory frameworks, the UAE is paving the way for businesses looking to capitalise on these industries.

The Trump-DAMAC connection: significance for the UAE

DAMAC Properties’ $20 billion investment in U.S. data centres is a bold move that reflects Hussain Sajwani’s knack for tapping into emerging industries. His business relationship with Donald Trump, which includes past collaborations like the Trump International Golf Club in Dubai, also brings added attention to this shift into digital infrastructure.

Through its EDGNEX portfolio, DAMAC is already developing data centres in countries like Saudi Arabia, Spain, and Turkey, aiming to meet rising global demand for secure data storage and processing.

Investments like these not only highlight DAMAC’s ambition but also show how UAE companies can step into leading roles in shaping the future of digital technology

Why the UAE is a prime location for crypto mining data centres

The UAE’s focus on renewable energy makes it an attractive option for crypto mining. Projects like the Mohammed bin Rashid Solar Park, which aims to produce 5,000 MW by 2030, offer businesses access to affordable and sustainable energy for high-power operations.

Clear regulations are another draw. The Virtual Assets Regulatory Authority (VARA) in Dubai provides businesses with a straightforward framework for operating in the cryptocurrency sector, reducing uncertainty and supporting long-term planning.

Its location is also a major advantage. Sitting between Europe, Asia, and Africa, the UAE offers excellent connectivity for global operations combined with advanced infrastructure and innovation-friendly policies.

Opportunities for crypto mining companies

Business-friendly zones

Free zones like DMCC and ADGM offer significant advantages for businesses in the crypto space. They provide streamlined company formation processes, flexible legal frameworks, and access to innovation-focused resources. For example, DMCC has established a dedicated Crypto Centre, which offers networking opportunities, expert-led workshops, and advisory services tailored to blockchain and cryptocurrency businesses. These zones also allow businesses to benefit from zero corporate tax, easy repatriation of profits, and exemptions from import/export duties.

Low operating costs

The UAE's energy costs are among the most competitive globally, thanks to abundant renewable energy projects like the Mohammed bin Rashid Solar Park. These projects lower electricity expenses, which are a major cost factor for energy-intensive operations like crypto mining. Additionally, the country’s advanced cooling technologies, such as liquid immersion cooling, help reduce power consumption by up to 30%.

Innovation support

The UAE actively supports businesses in the blockchain and crypto sectors through initiatives like VARA, which provides a clear regulatory framework and licensing support. The government also offers grants and funding opportunities through programmes like the UAE Innovation Fund and accelerators such as Hub71 in Abu Dhabi. These provide startups with access to seed capital, mentorship, and a network of investors, enabling faster market entry and scalability.

How to build a crypto mining data centre

If you’re looking to start a crypto mining business in the UAE, here are some of the key steps you need to take:

Business structure

Companies can be set up as free zone companies or mainland companies. Free zone companies, like DMCC, offer benefits like 100% foreign ownership and tax exemptions, while mainland companies offer more flexibility for local operations.

Licensing and compliance

VARA in Dubai oversees licensing for virtual asset businesses. Companies must ensure they comply with VARA’s regulations, including detailed operational requirements like data security and customer due diligence. Beyond VARA, compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations is critical. Firms must establish robust systems for monitoring and reporting transactions, in line with UAE Central Bank guidelines.

Infrastructure considerations

Location is key. Free zones often include purpose-built facilities designed to accommodate high-power data centres. Companies need to balance these advantages with factors like access to renewable energy, cooling systems, and connectivity to global markets.

The UAE’s growing digital economy

With affordable energy, clear regulations, and easy access to global markets, the UAE has everything crypto mining companies need to succeed. Whether you’re launching your first operation or expanding an existing one, careful planning and working with experts who understand the requirements in the UAE will help you capitalise on this opportunity.

How can Sovereign Group help?

Sovereign Group has extensive experience in company setup across the UAE and strong connections with government and free zone authorities. We can handle every step of the process, from licensing to visas and compliance, ensuring a seamless setup for your business.

Contact us today at +971 (0)4 456 1761 (Dubai) or +971 (0)2 448 5120 (Abu Dhabi), email us at dubai@sovereigngroup.com, or fill out the contact form below. Let us help you unlock the full potential of your crypto mining venture in the UAE.