Data center boom needs up to USD 42 bn

Big funding need: Saudi Arabia’s data center build-out could require between USD 24 and USD 42 bn in project capital and between USD 14 and 32 bn in debt financing, according to a new report by Alvarez & Marsal.

Capacity set to grow: The Kingdom currently has around 410 MW of installed data center capacity, forecast to reach roughly 1 GW by 2030. However, the announced project pipeline points to significantly greater ambitions, fueled by AI adoption and hyperscale cloud investment.

Saudi Arabia has around 12 watts of data center capacity per capita, compared with about 50 watts in both the UAE and the US, highlighting substantial room for growth.

Three factors: A&M reported that developers’ ability to secure financing will increasingly depend on three factors — contract, construction and capital. Securing anchor customers, locking in bankable revenues, allocating construction risks appropriately, and planning capital structures over the asset’s lifecycle will be key to attracting funding.

Why it matters: The scale of Saudi Arabia’s data center ambitions means access to capital could become as important as securing land, power, and customers. Projects that are structured to give lenders predictable cashflows and manageable risks are likely to have an edge as developers compete for funding.