KSA’s Al Moammar Information Systems makes progress with setting up six data centers

Saudi IT firmAl Moammar Information Systems (MIS) has purchased 6.6 mn units at a value of SAR 66 mn for data centers it is setting up for Saudi Fransi Capital (SFC), it said in a disclosure to Tadawul. These will be the first units installed at the six planned data centers as part of The Saudi Data Centers Fund 1 initiative.

The background: MIS and Saudi Fransi Capital inked an SAR 1.2 bn agreement back in 2021 to develop, design, and manage facilities for data centers through a private investment fund dubbed The Saudi Data Centers Fund 1, according to an earlier Tadawul statement. Under the agreement, MIS and Saudi Fransi Capital will establish, execute, and operate six data centers with an initial capacity of 4 MW each across the kingdom as a first phase, according to the statement.

The details: Under the 2021 agreement, MIS will act as the facility manager for an initial 15 years and will receive a development fee of 10% of the development budget. MIS will also receive a 7% facility management fee of the revenue generated from the data center operations for the 15 year period, according to the statement. MIS will also set up a 100% wholly owned subsidiary in Riyadh in July 2023 that will specialize in managing, operating, and marketing data centers, according to a separate Tadawul statement.

About MIS: Established in 1979, MIS is one of the largest IT companies in Saudi Arabia, and is the first Saudi listed IT company, according to its website. It provides integrated solutions for information systems. MIS customizes IT solutions that enhance productivity, streamline processes and optimize performance in the transport and logistics industry, manufacturing and retail, finance and banking, telecommunications, energy and utilities industries among others.

About Saudi Fransi Capital: The Riyadh-based group is the investment arm of Banque Saudi Fransi and is a leading financial services provider that provides investment banking, asset management, debt and equity research, institutional sales and trading, and local and global brokerage, according to its LinkedIn page.

KSA has been on a data roll: Amazon subsidiary Amazon Web Services is set to launch a “ hyper-scale” cloud region in Saudi Arabia by 2026 as part of a USD 5.3 bn investment ticket to meet demand for cloud services in the region. Riyadh-based DataVolt is also pledging USD 5 bn to develop local sustainable data centers, with a planned capacity that is upwards of 300 megawatts. IBM Corp also plans to invest USD 250 mn into a software development center in KSA.