Riyadh - The Saudi Ministry of Communications and Information Technology announced its work on the development plan; To build huge data centers in multiple regions across the Kingdom, a group of major developers and investors have set goals in developing neutral large data centers in the Kingdom.

The Ministry of Communications and Information Technology has developed a plan to create a strong and advanced digital infrastructure, in line with the acceleration of digital transformation and the adoption of new technologies in the Kingdom, including the development of huge data centers that accommodate the increasing demand for cloud services, to make the Kingdom a leading digital center for cloud computing in the region.

The ministry’s plan anticipates accelerating the development of data centers in the Kingdom to exceed the 1,300 megawatt barrier before 2030, with expected investments of more than $18 billion in data centers and renewable energy serving the region.

The Ministry worked closely with a group of local and international companies in this field to structure the basic business principles for the development of data centers in the Kingdom of Saudi Arabia. The Ministry also worked with the Gulf Data Center, Al Moammar Information Systems (MIS), and Fez Saudi Holdings (FAS), as an initial stage. More companies are expected to work in this field and achieve these goals.

The Undersecretary for Communications and Digital Infrastructure, Bassam Al-Bassam, explained that what the ministry is doing is to enable its partners to play a greater role in the next phase of the Kingdom's Vision 2030; To stimulate growth in large data centers to attract other digital investments, such as cloud service providers, game publishers, video streaming service operators, and Content Delivery Network (CDN) operators to localize their services within the Kingdom.

For his part, CEO of the Gulf Data Center, Tariq Al-Ashram, stressed that the region is witnessing a great and increasing demand for “video” broadcasting services and cloud services, as a result of the increasing demand by users for electronic entertainment tools and “internet” games, in addition to the accelerating digital transformation in the public and private sectors. Therefore, it is natural for cloud service providers and publishers to localize and host their operations in the region, stressing that they will harness their deep expertise to contribute to building the data centers of the future.

Khaled Al-Muammar, Chairman of the Board of Directors of Al-Muammar Information Systems, stated that the investment will allow today in the huge data centers to develop an effective role in facilitating the economic transformation.

In turn, FAS Saudi Holding Chairman Fawaz Abdulaziz Alhokair noted that they have diversified their activities over the past decade, and the development of massive data centers and sharing services will certainly complement the real estate and entertainment business portfolio, given the rapid growth of esports, electronic games and “video streaming” that we are witnessing today. .

It is noteworthy that the Kingdom has made great efforts to stimulate the development of the digital infrastructure in the Kingdom and enhance its role in connecting the world. The government also launched a national initiative to connect more than 3.5 million homes with optical fibers, cover 70 remote areas with wireless broadband networks, and launched the first “Internet” switch. Neutral (SAIX) in the Kingdom.

The three largest telecom companies in the region also operate in the Kingdom, which is the largest market for information and communications technology and emerging technologies, with a value of more than 35 billion US dollars since the year 2020.