UAE-based Alec Engineering and Contracting (Alec), a multi-disciplinary construction company and a part of Investment Corporation of Dubai (ICD) has announced the establishment of its newest subsidiary, ALEC Data Centre Solutions.

Announcing the new venture, Alec said it is mainly aimed at building on the group's strengths in the construction, MEP, logistics, fitout, and technology integration, and looking to cater to growing demand for regional data centres.

In addition to designing, implementing and commissioning turn-key data centres that conform to the highest international standards, Alec will offer clients prefabricated data centres for quick deployments within the region.

It is also set to be the first in the region to specialise in liquid immersion solutions that will result in more sustainable, customisable, and cost-effective data centres.

In the coming weeks, Alec Data Centre Solutions will also inaugurate its flagship experience centre where clients and prospects will have the opportunity to see the company's solutions first-hand and engage with experts about their specific requirements, said the statement from the Emirati group.

Buoyed by the wave of digital transformation, as well as concerns around data sovereignty and security, the UAE has seen a sharp increase in the demand for local data centres.

In fact, the country is one of the largest data centre hubs in the Middle East and is expected to attract investment of over $1.01 billion by 2026, representing a CAGR of 7.99% between 2021 to 2026.

However, apart from a few large organisations, conceptualising, building, and commissioning data centres has been a challenge for most enterprises in the region.

Alec CEO Kez Taylor said: "Until now, cost, expertise, logistics, customisability, and scalability have all presented formidable challenges to regional organisations looking to establish their own data centres, hampering their ability to innovate at pace and scale."

"With our entry into the rapidly advancing data centre space, Alec is set to fill the void for a single, large-scale specialist organisation that can offer the entire gamut of data centre development services," he added.

ALEC Data Centre Solutions will focus across three primary lines of business — traditional data centre construction solutions, prefabricated solutions, and modernisation and retrofit solutions. Furthermore, the company will have the ability to offer Liquid immersion solutions within all these sectors.

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