MIS snaps up SAR 228 mn to expand Naqaa data center in Riyadh

Saudi plugs funding into its data center scene: Saudi Arabia’s Authority for Data and Artificial Intelligence (Sdaia) has inked a SAR 228 mn contract with Al Moammar Information Systems Company (MIS) to expand Riyadh’s Naqaa data center, according to a Tadawul statement. The expansion is slated to address Sdaia’s escalating demand for data center capacity.

MIS has been active: MIS sealed a framework agreement in July to add up to 112 MW of capacity to Saudi Data Center Fund 1’s existing data centers. The 36-month agreement could also see MIS establish new data centers for the fund.

MIS + Saudi Data Center Fund 1 go way back: The fund was established in 2021 when MIS and Saudi Fransi Capital inked a SAR 1.2 bn agreement to develop, design, and manage data centers through the private investment fund. The agreement laid out plans for six data centers with a combined 24 MW capacity.

REMEMBER- Saudi Arabia is expected to spearhead MENA’s data center growth over the next three years, with a compound annual growth rate of 37% through 2027. This rate is forecasted to be almost double that of Dubai and Abu Dhabi, and well above the global average of 15%. The Kingdom’s drive to become an AI hub — fueled by government policies, tax incentives, and economic freezones — has attracted major firms like Microsoft, Amazon Web Services, and Equinix to invest in data center capacity.