Data centre principles structured with key developers

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The ministry of communications and information technology announced work on structuring key business principles for large scale data centre development in multiple regions across Saudi Arabia. Key investors are committed to the buildout of a series of neutral data centres, as the first batch among many expected to carry out this plan.

In line with the acceleration of digital transformation and the adoption of new technologies, the ministry has set an ambitious plan to establish a strong and advanced digital infrastructure. This includes the development of hyper scale data centres that accommodate the high demand for cloud services and enables them to become a computing powerhouse and the digital hub for the region.

The plan anticipates the acceleration for data centres development within the region to surpass the 1,300 megawatt mark before the year 2030, with expected investments of over 18 billion dollars in data centres and renewable energy serving the region. There is also expected to be close work with the private sector including local and international investors on structuring business principles for data centre developments.

“The region is witnessing a rapid demand for video streaming and cloud services,” Tarek Al Ashram, CEO of Gulf data hub, said “Driving this is the consumer demand for electronic and online entertainment, as well as the exponential digital transformation across the public and private sectors. It is only natural that cloud service providers and publishers localise and host their operations in the region, and we wish to lend our extensive knowledge in the sector to help build the data centres of tomorrow.”

The government’s effort to stimulate the development of the country’s digital infrastructure and enhance its role in connecting the globe include launching a nationwide initiative to connect three million households by fibre to the home, covering 70 per cent of the rural households in remote areas with wireless broadband networks and more than 74 cities with 5G technology.

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