{"id":105974,"date":"2026-02-23T00:00:00","date_gmt":"2026-02-23T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/ksa\/2026\/02\/23\/data-centers-dominate-project-awards-in-january\/"},"modified":"2026-02-23T00:00:00","modified_gmt":"2026-02-23T00:00:00","slug":"data-centers-dominate-project-awards-in-january","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/ksa\/2026\/02\/23\/data-centers-dominate-project-awards-in-january\/","title":{"rendered":"Data centers dominate project awards in January"},"content":{"rendered":"

The construction sector is kicking off 2026 with a structural pivot:<\/strong> A single SAR 10.1 bn (USD 2.7 bn) contract for a new data center accounted for nearly 90% of all awarded contract value in January, according to data (pdf)<\/a> from the Saudi Contractors Authority. The contract, awarded by the Saudi Data & AI Authority (Sdaia) for the 480 MW Hexagon Data Center in Riyadh, signals a hard shift in government spending to high-tech digital infrastructure.<\/p>\n

Why it matters: <\/strong>The void left by the gigaproject slowdown is being filled by sovereign tech. The premium now is in the highly specialized mechanical, electrical, and plumbing capabilities required to build and cool massive data hubs.<\/p>\n

\n

The context<\/p>\n

It was a brutal 2025 for traditional contractors. <\/strong>Total contract value dropped 60% y-o-y last year to under SAR 111 bn (USD 30 bn), according to the Saudi Contractors Authority.<\/p>\n

The pullback was driven from the top: <\/strong>The Public Investment Fund (PIF) drastically reined in its project spending, accounting for just 14% of total issued contracts compared to 38% in 2024, AGBI<\/a> reports.<\/p>\n

Why? <\/strong>Capital is shifting away from gigaprojects like The Line toward digital infrastructure and medium-term deadlines like the 2030 Riyadh Expo. The government has been signaling for some time now that it will prioritize projects with immediate economic returns, including AI, religious tourism, logistics, and mining.<\/p>\n

\n

\n

What\u2019s next? <\/strong>The Saudi Contractors Authority expects a slight volume bump with 11 projects to be awarded in February. While the pipeline features legacy heavyweights like PIF, Sabic, and Neom, the true test for contractors will be the composition of these upcoming awards \u2014 specifically, whether they confirm this new sovereign tech mandate anchored in Riyadh and the Eastern Province.<\/p>\n","protected":false},"excerpt":{"rendered":"

Just six projects worth more than SAR 3 bn were awarded in December 2025<\/p>\n","protected":false},"author":1,"featured_media":105975,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2576],"tags":[142,4908,10],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-105974","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-construction","tag-construction","tag-data-center","tag-enterpriseam-ksa","wpautop","entry"],"acf":{"mongo_id":"dbe5bf6c-8af5-44a6-8693-b9ac6d786cd9","order":"5","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2026\/2\/1346.jpg","photo_position":"above","homepage_title":"","full_issue_title":"Data centers dominate project awards in January","related_issue":[105966],"teaser":"Just six projects worth more than SAR 3 bn were awarded in December 2025"},"yoast_head":"\nData centers dominate project awards in January - 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