Saudi Arabia’s digital infrastructure is entering a significant new phase as Al Moammar Information Systems prepares to roll out a major 72MW expansion of its data centre capacity. The development marks the first step of a larger 112MW framework agreement that positions the company as a central player in Saudi Arabia’s rapidly expanding digital and cloud landscape.
The project reflects the country’s growing appetite for cloud services, artificial intelligence, digital transformation, and hyperscale infrastructure. As businesses, public institutions, and global technology companies deepen their presence in the Kingdom, the demand for high-capacity, secure, and scalable data centres continues to surge. Al Moammar’s new expansion comes at a crucial time when Saudi Arabia is solidifying its status as a regional technology leader.
A Major Step Under a 112MW Framework Agreement
The foundation of this growth lies in the framework agreement signed between Al Moammar and Saudi Data Centres Fund 1 in July 2025. The agreement provides a structure for expanding data centre capacity by a total of 112MW. The newly announced 72MW capacity marks the first major execution phase under this agreement.
This initial phase is structured to strengthen Saudi Arabia’s technology backbone while supporting the country’s ongoing digital transformation journey. With technology adoption accelerating across all sectors, the demand for advanced data infrastructure is higher than ever. This expansion comes at the perfect time to meet those needs.
Project Value Estimated at 3 Billion Saudi Riyals
The financial scale of the project underscores its significance. Al Moammar estimates the value of the 72MW expansion to be around 3 billion Saudi riyals, equivalent to roughly 800 million dollars. This substantial investment signals strong confidence in the growth of Saudi Arabia’s cloud and data-driven economy.
A project of this magnitude also reflects the Kingdom’s ambition to attract global companies looking for advanced hosting and digital solutions. As international cloud providers and tech firms expand in Saudi Arabia, their need for reliable, high-capacity, and secure data centre infrastructure grows. Al Moammar’s expansion aims to directly support this increasing demand.
Expected Financial Impact Starting 2026
Al Moammar has confirmed that the financial impact from the first 24MW of the project will begin appearing in the first quarter of 2026. This financial influence is expected to continue steadily until the first quarter of 2027.
For investors and stakeholders, this timeline provides clarity on revenue realization and project progress. The remaining 48MW of the expansion will be detailed within the next six months, offering further insight into how the project will unfold and the strategic milestones ahead.
The company’s structured approach reflects its commitment to transparency, long-term planning, and alignment with Saudi Arabia’s broader digital infrastructure objectives.
A 36-Month Contract Timeline
The overall contract comes with a 36-month duration, ensuring that the expansion is executed in an organized and phased manner. This period allows for detailed planning, construction, deployment, and integration of the new capacity into existing systems.
Such a timeline is typical for large-scale data centre projects, given the complexities of power management, cooling systems, security infrastructure, and connectivity requirements. With the long-term nature of the agreement, both Al Moammar and Saudi Data Centres Fund 1 have created a sustainable framework to support ongoing digital progress.
Saudi Fransi Capital Representing Saudi Data Centres Fund 1
Saudi Data Centres Fund 1, represented by Saudi Fransi Capital, plays an essential role as the financial and strategic backer of this expansion. As the fund manager, Saudi Fransi Capital helps structure the investment model and ensure that project governance aligns with long-term goals.
This collaboration highlights the Kingdom’s strategy of combining private sector expertise with institutional financial strength. It is an approach that accelerates development, reduces risk, and fuels innovation in critical sectors such as data infrastructure.
Strengthening Saudi Arabia’s Position in the Regional Tech Landscape
Saudi Arabia is becoming one of the most attractive destinations for technology investment in the region. This growth is powered by a combination of visionary government policies, economic diversification initiatives, and strong private-sector partnerships.
The Al Moammar 72MW expansion aligns perfectly with several national objectives, including:
• Accelerating cloud adoption
• Enhancing digital public services
• Supporting AI and advanced analytics
• Enabling smart city projects
• Attracting global technology companies
• Expanding digital economy contributions to GDP
As the Kingdom seeks to lead the digital future of the Middle East, investments in infrastructure hold the key to unlocking long-term advantages. Data centres form the foundation for everything from financial technology and e-commerce to AI-driven innovation.
A Boost to Cloud, AI, and Enterprise Technology
The new capacity will be especially important for:
• Cloud service providers
• Enterprises undergoing digital transformation
• Government agencies expanding digital platforms
• AI and machine learning platforms
• Cybersecurity operations
• Content delivery and streaming companies
With the rise of generative AI, automation, and data-intensive applications, the demand for compute power has multiplied. The upcoming 72MW boost provides the necessary environment for companies to process large volumes of data securely and efficiently.
Impact on Local and Regional Businesses
The expansion also supports local companies that are rapidly digitizing their operations. From retail and logistics to finance and healthcare, Saudi businesses are increasingly dependent on cloud solutions. With new capacity entering the market, these businesses will have access to more reliable, scalable, and cost-effective digital infrastructure.
Regional businesses from the wider Gulf area may also benefit, as Saudi Arabia strengthens its role as a central hub for data hosting and digital services. This positions the Kingdom as an alternative to hubs like the UAE, boosting regional competitiveness.
Driving Job Creation and Tech Talent Growth
Large data centre projects require a wide range of skills, driving demand for both technical and operational talent. The expansion is expected to contribute to job creation in fields such as:
• Electrical engineering
• IT and cloud operations
• Facility management
• Network engineering
• Cybersecurity
• Project management
This aligns with Saudi Arabia’s goal of developing its local workforce and expanding the technology talent pool.
Conclusion
Al Moammar’s 72MW data centre expansion marks a major step forward in Saudi Arabia’s journey towards becoming a global digital powerhouse. Backed by Saudi Data Centres Fund 1 and supported by a strong financial framework, the project reflects national ambitions for long-term digital growth.
As the Kingdom accelerates investments in cloud infrastructure, AI, smart cities, and digital transformation, projects like this create the foundation for sustainable progress. The upcoming 112MW framework, beginning with this 72MW phase, positions Al Moammar as a key player shaping the future of Saudi Arabia’s digital economy.
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