Design under way for Saudi gigawatt-scale data centre project

27 February 2025

 

Design work is expected to start imminently for a gigawatt-scale data centre project in Saudi Arabia, which a project sponsor says will be designed and built to meet Tier 4 standards.

Riyadh-based Built Industrial Company, represented by its general manager, Mohamed Naser, and Shaker Consultancy CEO, Ismael Shaker, signed an agreement for the design and construction supervision of the planned data centre in the summer of last year.

According to an industry source, Built Industrial Company is one of the project sponsors. This implies the presence of other partners that may include a government entity or a global hyperscaler, or both.

The planned data centre facility will have multiple locations and could reach or exceed 1GW of IT load capacity, added the source.

According to the US' Uptime Institute, a Tier 4 data centre has several independent and physically isolated systems that act as redundant capacity components and distribution paths, allowing higher fault tolerance when equipment fails or an interruption occurs in the distribution path compared to lower-tier data centre facilities.

Several planned data centre projects in Saudi Arabia entail multiple locations.

In a joint venture with Shanghai-based Lumaotong Group and China Mobile International, Riyadh-headquartered data centre developer ICS Arabia plans to invest a total of $1.9bn across three locations in Saudi Arabia. However, these data centre facilities, known as Desert Dragon, are expected to achieve a Tier 3-level certification.

Related readGCC’s top five data centre projects.

In March 2024, US-headquartered Amazon Web Services (AWS) launched a plan for a new AWS Region in Saudi Arabia in 2026 as part of its long-term commitment to invest more than $5.3bn in the kingdom.

The planned AWS Region in Saudi Arabia will comprise three availability zones, or a data centre infrastructure in separate and distinct locations “far enough from each other to support customers’ business continuity, but near enough to provide low latency for high availability applications”.

In May 2023, Saudi sovereign vehicle, the Public Investment Fund (PIF), also teamed up with US-based infrastructure investor and asset manager DigitalBridge to develop data centres and related digital infrastructure in Saudi Arabia and across the GCC states.

The new partnership aims to support the growth of the digital economy in Saudi Arabia and the GCC region. They said the partnership will initially prioritise investments in the data centre sector and then explore other segments of digital infrastructure in the future, including macro towers, fibre, small cell and edge infrastructure.

DataVolt is also planning several data centre projects in Saudi Arabia, including a 1.5GW renewable energy-powered facility in Oxagon, Neom's industrial cluster. The project's initial phase is expected to require $5bn of investment.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13433769/main.jpg
Jennifer Aguinaldo
Related Articles
  • Firms submit Mid Island Parkway prequalifications

    18 August 2026

     

    Abu Dhabi’s Modon Infrastructure has received expressions of interest and prequalification statements for the next phase of Abu Dhabi’s Mid Island Parkway Project (MIPP), which will be developed as a public-private partnership.

    Modon Infrastructure will act as the lead developer and will hold a majority equity stake in the project company. It will award contracts for engineering, procurement and construction; operations and maintenance; and project advisory services.

    Phase two of the MIPP involves constructing about 11 kilometres (km) of highways, comprising a mix of three-, four- and five-lane sections. The highways will connect the Um-Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al-Nakhl islands to Khalifa City and the E10 road.

    The scope also includes the construction of three interchanges – E20, E10 and Dumbbell – on Al-Sammaliyyah Island.

    The project includes several major structures, including the E20 interchange, which will feature cast-in-place box-girder and void-slab bridges, and the E10 interchange, which will feature cast-in-place box-girder bridges. It also includes I-girder bridges between Raha Beach West and Sas Al-Nakhl Island, as well as a causeway at Sas Al-Nakhl Island.

    Further elements include a cast-in-place balanced cantilever bridge between Sas Al-Nakhl Island and Al-Sammaliyyah Island; a tunnel between Al-Sammaliyyah Island and Bilrimaid Island; and a cut-and-cover tunnel on Bilrimaid Island. Another tunnel will connect Bilrimaid Island to Um-Yifeenah Island.

    Abu Dhabi awarded three packages for phase one of the MIPP in 2024. The contract for Package 1A was awarded to a joint venture of Turkish contractor Dogus Construction and UAE firm Gulf Contractors. Package 1B was awarded to a joint venture of Yas Projects (Alpha Dhabi Holding) and China Railway International Group. Beijing-headquartered China Harbour Engineering Company and the UAE’s Agility Engineering & Contracting Company won the contract for Package 1C.

    Phase one starts at the existing Saadiyat Interchange, connecting the E12 to the MIPP, and ends at the recently constructed Um-Yifeenah Highway.

    It comprises a dual main road with a total length of 8km, including four traffic lanes in each direction, two interchanges, a tunnel and associated infrastructure works.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18830452/main.png
    Yasir Iqbal
  • Construction begins on phase two of Cairo Metro Line 4

    18 August 2026

    Egypt’s National Authority for Tunnels (NAT) has begun implementing the second phase of Cairo Metro’s Line 4, spanning about 27 kilometres.

    The main construction works contract was awarded to a joint venture of local firms, including Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting.

    Cairo Metro Line 4 will stretch from Fustat station to Zahraa Nasr City station in New Cairo. The line will comprise 21 stations, 15 underground and six elevated.

    According to data from regional projects tracker MEED Projects, the scope also covers:

    • Construction of a tunnel route starting from Al-Fustat station, following Salah Salem Road, and intersecting with the sixth metro line at Sayeda Aisha station
    • An extension along Hafez Ibrahim Street, intersecting the Shinzo Abe Axis and linking Ahmed Al-Zomor and Al-Mithaq streets
    • A section running via Nasr Road and Nasr City to Anwar Al-Mufti Street, with an interchange with the East Nile Monorail at Aviation station
    • Construction of a depot at the Omra El-Gasima site
    • Integration of interchange stations with existing lines, including Line 1 and Line 2
    • Construction of structures over and under major roadways, including the Ring Road and Cairo-Suez Road
    • Earthworks and site preparation, including elevated foundations and underground excavations
    • Construction of all other associated infrastructure

    Local media reports said construction work on the first phase of Line 4 is expected to be completed in 2028.

    The joint venture of Arab Contractors, Hassan Allam, Petrojet and Concord Engineering & Contracting is also undertaking the main works on the first phase.

    The Japan International Cooperation Agency (Jica) provided half of the $4bn funding required for Line 4’s first phase.

    The media reports added that NAT is currently studying the third and fourth phases of Line 4.

    The third phase aims to connect the Ashgar Gardens and Al-Hosary areas via a rail line spanning more than 16km.

    The fourth phase will be more than 38km long and will connect the Al-Rehab area with the capital’s international airport east of Cairo.

    Once completed across all phases, Line 4 will link 6th of October City with southern and eastern Cairo, the New Administrative Capital and Capital International airport, making it one of the longest transport networks in the country.

    In April last year, MEED reported on Egypt’s future rail project plans, which include eight key projects spanning metro, high-speed rail and light rail transit.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18825481/main.jpg
    Yasir Iqbal
  • RTA opens bridge connecting DWTC to Al-Mustaqbal Street

    18 August 2026

    Dubai’s Roads & Transport Authority (RTA) has opened a new 500-metre, two-lane bridge connecting traffic from Dubai World Trade Centre (DWTC) and One Central to Al-Mustaqbal Street.

    The bridge will reduce travel time from DWTC to Al-Mustaqbal Street from around 10 minutes to about two minutes during major events.

    The bridge is part of the $172m Al-Mustaqbal Street Development Project. The wider scheme includes around 2,000 metres of bridges and tunnels, along with a pedestrian bridge on Al-Sukook Street, and runs from Zaabeel Palace Street to Financial Centre Street.

    As part of the project, Al-Mustaqbal Street will be widened from three to four lanes in each direction, increasing overall capacity by 33% to 8,800 vehicles per hour in both directions.

    The RTA added that this is expected to cut end-to-end travel time along the corridor from 13 minutes to six minutes.

    Three tunnels, totalling 1,500 metres, at the intersection of Al-Mustaqbal Street and Trade Centre Street are scheduled to open in February 2027.

    These include a three-lane tunnel towards Deira with a capacity of 4,500 vehicles per hour, a two-lane tunnel for left-turn movements between the two streets, and a one-lane tunnel serving One Central.

    The RTA said that the overall project completion rate has reached 85%.

    In February last year, MEED exclusively reported that the RTA had selected local firm Wade Adams to undertake improvement works on Al-Mustaqbal Street.

    Planning for growth

    The Dubai 2040 Urban Master Plan was launched in March 2021. Its launch referenced studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims for residents to have 80% of their daily requirements within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.


    READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDF

    Saudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.

    Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:

    > MARKET FOCUS: Maghreb fortunes diverge
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/18822891/main.jpg
    Yasir Iqbal
  • Saudi Arabia approves new procurement law

    17 August 2026

    Saudi Arabia’s Council of Ministers has approved a new Government Tenders and Procurement Law (GTPL), introducing changes to public procurement procedures and government contracting.

    The Ministry of Finance announced the approval on 5 August.

    The new law aims to strengthen governance and transparency, improve procurement planning and implementation, and promote fairness and equal opportunities in government contracting.

    The changes give government entities greater flexibility in procurement while introducing new provisions that could affect contractors and suppliers, including contract variations, outstanding payments and procurement procedures.

    Contract flexibility

    According to a Ministry of Finance summary of the key amendments, one of the main changes allows government entities to increase existing contract items by up to 20% of the contract value. Contractor approval is required for increases exceeding 10%, while the total increase from adding new items or increasing existing items cannot exceed 20% of the contract value.

    The amendments also introduce measures addressing outstanding payments to contractors. A government entity cannot make a new award when it has outstanding amounts owed to contractors for works or procurement and the required procedures have not been taken, after notification from the Ministry of Finance.

    Exceptions apply where non-payment relates to ministry procedures or where the government entity has taken the required action on a claim but does not have sufficient budget allocations.

    Single committee

    Under the new law, the committees responsible for opening and examining bids will be merged into a single committee.

    The maximum value for direct procurement will rise from SR100,000 ($26,700) to SR1m ($267,000) while government entities will be required to explain and document their use of direct procurement.

    Direct procurement will also be permitted in cases involving research, development and innovation and certain contracts with professional practitioners.

    The amendments reduce the minimum standstill period following a procurement award from five working days to three working days. Government entities will also be able to negotiate where the best bid exceeds the estimated cost plus the permitted contingency.

    Localisation

    The new framework includes provisions covering industrial localisation and knowledge transfer. The Ministry of Finance said it will issue rules for contracting for these purposes in cooperation with the Local Content and Government Procurement Authority.

    A new regulation will also cover research, development and innovation, including tendering and contracting provisions for these activities.

    Other changes involve contractors’ exposure to penalties. The maximum delay penalty on contracts, excluding supply contracts, will fall from 20% to 15% of contract value. The maximum penalty for non-performance in continuous-performance contracts will also fall from 20% to 15%.

    The value of purchases exempt from providing a final guarantee will rise from SR100,000 ($26,700) to SR300,000 ($80,000). Additional exemptions will apply to contracts with professional practitioners and emergency or urgent cases.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18805103/main.jpg
    Mark Dowdall
  • GCC reviews first phase of water interconnection study

    17 August 2026

    The GCC General Secretariat has completed the first phase of a study examining the feasibility of developing water interconnection projects between GCC member states.

    A two-day workshop reviewing the study’s findings concluded on 12 August at the headquarters of the GCC Interconnection Authority (GCCIA) in Dammam, Saudi Arabia.

    The GCC General Secretariat organised the workshop in cooperation with GCCIA, with representatives from relevant authorities and experts in water, infrastructure and water security taking part.

    Participants reviewed the first phase findings, including an assessment of existing water supply infrastructure and the actual water needs of GCC member states. They also discussed the technical requirements and data needed to complete the study.

    The study is intended to identify practical options and feasible solutions for developing a regional water interconnection network. This includes establishing an implementation roadmap.

    The initiative aims to improve the GCC states’ ability to respond to emergencies and crises and support continuity of water supplies.

    First meeting

    The workshop followed a virtual meeting on 22 July between the GCC General Secretariat and Saudi Arabia’s water authorities as part of the study.

    That meeting, which also involved consultancy Artelia, reviewed the study’s methodology and implementation stages. These include assessing existing water systems across GCC states, their resilience and emergency readiness, and developing technical options for bilateral water interconnection projects.

    In Saudi Arabia, the study is focused primarily on the Eastern Province and Riyadh. It is assessing water production and desalination facilities, transmission pipelines, strategic reservoirs, pumping stations and existing and planned projects.

    The study is also examining potential bilateral connections between Saudi Arabia and Bahrain, Kuwait and Qatar, as well as the possibility of a connection with the UAE.

    The 22 July meeting also discussed potential connection points and routes, water flow directions and the possibility of designing interconnection pipelines to operate in both directions.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/18802726/main.jpg
    Mark Dowdall