Alfanar to Invest $1.4 Billion in Saudi Arabian Data Centers

Alfanar Global Development plans to invest $1.4 billion in four data centers in Saudi Arabia. These centers will support cloud computing and AI solutions, prioritizing sustainability. The initiative also aligns with the Kingdom’s Vision 2030 goals, positioning Saudi Arabia as a leader in data storage and technology-driven innovation.

Alfanar Global Development has announced a substantial investment of $1.4 billion to establish data centers in Saudi Arabia. This initiative was unveiled during the LEAP 2025 event last month, indicating the development of four strategically positioned data centers in Riyadh and Dammam designed to enhance cloud computing and AI-driven solutions for both public and private sectors.

Although details regarding the capacity and timelines of these data centers remain limited, Alfanar has emphasized their commitment to sustainability and efficiency. This project is intended to align with the Kingdom’s green energy and environmental aspirations, further contributing to the country’s Vision 2030 goals.

Amer Al Ajmi, Executive Vice President, expressed pride in Alfanar’s project, stating that it would foster a secure and scalable digital infrastructure, advance the Kingdom’s digital economy, and bolster Saudi Arabia’s status as a hub for data storage and technological innovation.

Describing itself as a “global project developer,” Alfanar is currently engaged in various developments across Saudi Arabia and other countries, including energy, data centers, and hospitals. The company has successfully completed four data center projects in Saudi Arabia, serving clients like the Saudi Red Crescent Authority and the Saline Water Conversion Corporation, with the largest center having a 1MW capacity.

Saudi Arabia’s data center markets are primarily located in Dammam, Riyadh, and Jeddah, attracting significant interest from developers. This year, notable companies such as DataVolt and Equinix have announced plans for data centers in the Kingdom. Additionally, Microsoft recently completed its Saudi cloud region, set to go live in 2026, while other major cloud providers like Google, AWS, and Oracle are expanding their presence in the region. Tencent has also launched its first Middle Eastern cloud region in Saudi Arabia.

Alfanar Global Development’s investment in Saudi Arabian data centers reflects a significant step forward in enhancing the Kingdom’s digital infrastructure and aligning with its Vision 2030 objectives. The focus on sustainability and efficiency, along with the strategic locations of the centers, highlights the anticipated growth of cloud and AI-driven solutions in both public and private sectors. Furthermore, this investment positions Saudi Arabia as a leading player in the global data storage and technology landscape.

Original Source: www.datacenterdynamics.com