DataVolt nears the finish line on its Riyadh data center

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WHAT WE’RE TRACKING TODAY

TODAY: DataVolt’s Riyadh data center finds its anchor tenant + More cargo for EGA at Khalifa Port

Good morning, wonderful people. It's a brisk read this morning — DataVolt is closing in on USD 500 mn for its Riyadh data center now that it has landed its anchor tenant, and AD Ports and EGA are thinking bigger (ships, that is) at Khalifa Port.

DAE goes shopping

Dubai Aerospace Enterprise (DAE) is targeting up to USD 3 bn (AED 11 bn) in aircraft acquisitions this year as it looks to expand its global leasing portfolio, doubling down on continued strong demand for commercial aircraft and sustained growth in international air travel, CEO Firoz Tarapore told Al Bayan. The company is expecting to take delivery of more than 30 new aircraft in 2026 from its orderbook with Boeing, Airbus, and ATR.

A diversified growth strategy: DAE acquired more than 300 aircraft over the past three years through M&A alongside direct purchases from manufacturers, Tarapore said, as airlines’ appetite for newer, more fuel-efficient aircraft continues to underpin demand for lessors, he added.

Why it matters: The expansion comes as aircraft lessors continue to benefit from a prolonged supply shortage caused by production constraints at Boeing and Airbus, which has kept lease rates elevated and extended the economic life of existing fleets.

CPTPP trade pact

The UAE has moved a step closer to joining one of the world’s biggest trade blocs. Members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreed to kick off preparatory discussions with the UAE, opening the door to what could eventually become formal accession talks, according to a statement (pdf).

Next up, senior officials will launch preliminary discussions and report back to ministers. However, the process is still in its early stage, and any future accession would still require unanimous backing from all CPTPP members.

IN CONTEXT- The UAE has been on a drive in recent years to expand its trade ties, aiming to reach AED 4 tn in total foreign trade by 2031 after already hitting 75% of that target in 2024. The Emirates’ ever-expanding CEPA network has been a major driver of growth, with several agreements already secured so far this year, including with Ecuador, Nigeria, and the Philippines.

Emirates’ carbon crunch

A looming carbon credit shortage could cost Emirates USD 8 bn by 2035, wiping out a fifth of its 2025 operating revenue and hitting the carrier harder than any other airline, the Financial Times reports, citing a report by MSCI Carbon Markets. The carrier is likely to be the largest user of carbon credits owing to its focus on long-haul flights through Dubai.

A better-case scenario? While a surge in airline demand could drive carbon credit prices up eightfold to USD 100 a ton by 2035, a more optimistic outlook limits Emirates’ total compliance cost to an estimated USD 2 bn over the same period, MSCI said.

Market watch

Oil prices eased this morning — set for a monthly loss ahead of possible US-Iran talks, despite a fragile ceasefire, Reuters reports. Brent crude futures declined USD 0.64 to USD 72.51 / bbl by 03.56 GMT, while West Texas Intermediate (WTI) fell USD 0.39 to USD 70.36 / bbl.

The Baltic Index extends its slide: The Baltic Exchange’s dry bulk index — which tracks rates for the capesize, panamax, and supramax vessel segments — fell 1.4% to 2,490 points on Monday. The capesize index declined 2.5% to 3,538 points, while the panamax index rose 0.7% to 2,124 points. The smaller supramax index slipped 0.1% at 1,668 points.

Data point

SAR 90.5 bn — that’s Saudi Arabia’s merchandise trade surplus in 1Q 2026, up 43.7% y-o-y and 60% q-o-q. Total trade rose 4.5% y-o-y to SAR 535.1 bn, with merchandise exports reaching SAR 312.8 bn and imports at SAR 222.3 bn. Re-exports grew 32.9% y-o-y to more than SAR 38 bn — up from SAR 28.8 bn in 1Q 2025 — while China remained Saudi Arabia's largest export market, receiving SAR 44.8 bn worth of goods.

PSA

CMA CGM resets Med-Gulf and Red Sea rates: CMA CGM will apply new container freight rates from Mediterranean origins to Gulf and Red Sea ports from 6 July. West Med and Adriatic shippers will pay USD 6.1-6.3k per 20-40-ft container, rising to USD 6.6-6.8k from East Med and USD 6.7-6.9k from the Black Sea. Red Sea rates will range from USD 2.1-2.3k (East Med) to USD 3.2-3.4k (Black Sea) per 20-40-ft container.

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DataVolt nears USD 500 mn Riyadh financing after Humain agreement

Data center developer DataVolt expects to reach financial close within three months on its USD 500 mn Riyadh East data center, after securing a leading AI provider as the anchor customer for more than 80% of the facility’s capacity, CEO Rajit Nanda tells EnterpriseAM. Banks are expected to finance around 75% of the project’s cost, Nanda says.

The details: A leading AI provider committed to 36 MW of the site’s planned 44 MW capacity. The anchor commitment is expected to underpin financing for the project, whose first operational phase is scheduled to enter service by the end of 2026, with the remaining phases due by mid-2027.

Heading to Neom

Beyond Riyadh, DataVolt is in “advanced talks” with major Western data center companies to anchor the first phase of its 1.5 GW AI campus at Neom’s industrial city Oxagon, with construction expected to begin within two to three months of signing with a customer, Nanda says.

REMEMBER- The facility is being developed as an AI compute export hub serving customers in Europe and North America. The first 240 MW is expected to come online next year and represents about USD 2.5 bn of DataVolt’s investment, with the total value rising to about USD 10 bn once customer-owned computing infrastructure is included.

Besides Neom, DataVolt expects all 60 MW currently under development to be operational by mid-2027, including a USD 250 mn, 12 MW facility in the Uzbek capital Tashkent that will serve Central Asia.

Nanda says DataVolt reached financial close on the Uzbekistan project last week, and intends to replicate that project-finance model in Saudi Arabia. “It is a small project, but it establishes and gives confidence now to the entire Global South in terms of a business model that can be banked,” he says.

About DataVolt: Founded in 2023 by Saudi infrastructure investor Vision Invest, DataVolt is chaired by former Acwa Power CEO Paddy Padmanathan, and is applying project-finance structures traditionally used in power and water projects to fund AI infrastructure.

What’s next? DataVolt expects 2026 to be its first profitable year. Nanda says there are no current plans for acquisitions, bond issuance, or public listing, although an IPO will continue to be evaluated as the business grows.

AD Ports, EGA invest AED 84 mn to expand Khalifa Port berth for larger vessels

AD Ports and Emirates Global Aluminium will invest AED 84 mn to expand EGA’s dedicated berth at Khalifa Port. The investment will increase capacity at the berth, allowing it to handle larger Newcastlemax vessels, which can transport 15-20% more cargo than the Capesize vessels currently calling at EGA’s berth, according to a press release (pdf). The berth should be able to process up to 8 mtpa of bulk cargo by the time the project is completed in August 2028.

The infrastructure push comes amid a year of supply chain rebuilding. EGA spent 2025 reconstructing its bauxite sourcing after Guinea terminated GAC's basic agreement and revoked its mining license. It secured alternative supplies from Australia, Ghana, and Brazil, signed term contracts covering more than 70% of its volume needs, and preserved flexibility through framework agreements and spot purchases.

The broader pattern is EGA turning logistics into industrial infrastructure. The company ships around 14 mn tons of raw materials and finished metal globally each year and, in May, signed a separate agreement with Adnoc Logistics & Services to explore cooperation on transport, fleet management, and logistics assets. The Khalifa berth upgrade — building on an MoU inked with AD Ports in 2018 around EGA's supply chain — is the latest move in that direction.

Sabic sends first polymer shipment via Red Sea Express from Yanbu

Red Sea Express route for polymers

The Saudi Ports Authority (Mawani), Sabic, and Folk Maritime have shipped the first containerized polymer shipment from King Fahd Industrial Port in Yanbu via the Red Sea Express service, marking the first use of the route for the company’s products. Operated by Folk Maritime, the 1.1k-TEU Red Sea Express links Jeddah Islamic Port and Yanbu with Ain Sokhna and Aqaba, creating a scheduled container connection for Saudi industrial exports across the Red Sea. The route is expected to speed cargo handling, cut vessel waiting times, improve supply-chain efficiency, and support Saudi non-oil exports.

Bilbao’s Russian LNG rebound tests Europe’s 2027 ban

Russian LNG is still gaining ground in Spain as the EU heads toward its 2027 cutoff, the Financial Times reports. Russia supplied 27.8% of Spain's gas in May, 58.5% more than in May 2025, according to grid operator Enagás, even as the bloc's full ban on Russian LNG contracts takes effect from 1 January. Algeria remains Spain's main source of gas through pipeline links, but Russian volumes are climbing back.

The rift is no longer just behind closed doors: Ivan Jimenez, who runs the Port of Bilbao, told the FT that Russian imports should be reduced — but warned that “you cannot do that from one day to another,” arguing that an abrupt cutoff risks leaving Europe overdependent on US cargoes. Spain's Energy Minister Sara Aagesen Muñoz pushed back, saying the ban should proceed as planned and describing the recent surge as “temporary,” linked to logistics and price volatility in a changing market.

Russian LNG had been retreating at Bilbao — then reversed. Russian shipments accounted for more than three-quarters of the port’s gas imports in 2024, before dropping to 48% in 2025 as the EU diversified toward US supply, which made up 49% of Bilbao's intake that year. Between January and May 2026, Russia's share climbed back to 59%, while the US fell to 40%. Jimenez noted that importers were likely rushing to bring in “as much as possible” before the ban, adding that Russian gas is typically cheaper than US supply.

The EU has already legislated the LNG exit: The bloc’s regulation sets a full prohibition on Russian LNG imports from the beginning of 2027, while the full pipeline-gas ban starts in autumn 2027. The rules require member states to verify gas origin before authorizing imports and to prepare national diversification plans that identify difficulties in replacing remaining Russian volumes.

An alternative exists, but on a different scale

Algeria is the most immediate backstop for Europe. Spain and Italy are both connected via Algerian pipelines — with a combined transport capacity of 43 bcm per year — and Algeria supplied around 20 bcm to Italy last year, roughly 30% of Italian consumption. Spain is looking to increase throughput on the Medgaz pipeline by around 10% given regional energy market disruptions.

US LNG has already reshaped Europe’s supply mix. US LNG rose from 6% of European gas imports in 2021 to 29%, making the US the bloc’s second-largest source of imported gas after Norway. Jimenez suspects Trump will press the EU to keep the Russian ban in place because it boosts US exports.

Norway’s contribution is a longer-term play. Three dormant North Sea fields — Albuskjell, Vest Ekofisk, and Tommeliten Gamma — are expected to restart production in 2028, with most of the gas heading to Germany.

Calendar

AUGUST

30 August-1 September (Sunday-Tuesday): Air Cargo Middle East, Riyadh, Saudi Arabia.

30 August-1 September (Sunday-Tuesday): Saudi Warehouse and Logistics Expo, Riyadh, Saudi Arabia.

SEPTEMBER

16-17 September (Wednesday-Thursday): Saudi Maritime & Logistics Congress, Dammam, Saudi Arabia.

22-24 September (Tuesday-Thursday): Seamless Middle East, Dubai, UAE.

28-30 September (Monday-Wednesday): Transport Logistics Middle East, Riyadh, Saudi Arabia.

OCTOBER

12-14 October (Monday-Wednesday): The Airport Show, Dubai, UAE.

21-22 October (Wednesday-Thursday): Global Ports Forum, Singapore.

26-29 (Monday-Thursday): Air Cargo Forum, Miami, US.

27-29 October (Tuesday-Thursday): Routes World, Riyadh, Saudi Arabia.

NOVEMBER

2-5 November (Monday-Thursday): ADIPEC Maritime and Logistics Exhibition and Conference, Abu Dhabi, UAE.

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