Data Centers (Saudi Arabian Market)

2021: Start building a network of giant data centers for $18 billion in Saudi Arabia

As it became known in July 2021, the Saudi government is raising $18 billion to build large data centers by 2030 to bring the total capacity of the network of such facilities in the country to more than 1.3 GW.

The Saudi Press Agency, the official news agency of Saudi Arabia, reported that key local investors intend to build a number of independent data centers throughout the country.

Saudi Arabia begins to build a network of giant data centers for $18 billion

Bassam Al-Bassam, Deputy Minister of Telecommunications and Digital Infrastructure, who previously worked for Saudi Telecom and Cisco, said the following:

We will allow local leaders to play a more important role in the upcoming phase of the program called Saudi Vision 2030, in order to localize their services within the Kingdom to attract other digital investments, such as cloud service providers, game publishers and developers, video streaming service operators and content delivery network operators to localize their services within our country!.

The ministry also clarified that it works closely with private business, including local and international investors, on structuring the principles of doing business for the development of a network of data centers in Saudi Arabia.

The report says that already three companies, such as Gulf Data Hub, Al Moammar Information Systems and Saudi FAS Holding Company, have already had experience in successfully collaborating with the department in developing plans for the construction of large-scale data centers that can help accelerate the achievement of ambitious goals.

The Saudi press agency notes that plans to expand the data center network also involve connecting 3.5 million households to fiber, this project provides for coverage of 70% of houses in remote areas and providing them with wireless broadband, as well as the launch of 5G networks in 74 cities.^[1]

Notes