meed-logo

line1 line2 line3
SIGN IN / REGISTER

GCC’s top five data centre projects

26 February 2025

 

Register for MEED’s 14-day trial access 

Over the past few weeks, tech companies and data centre operators have announced multibillion-dollars’ worth of planned investments in data centre projects and related digital infrastructure.

Companies such as Riyadh-based DataVolt, Ezditek and Al-Moammer Information Systems and Dubai-headquartered Gulf Data Hub have signed agreements to develop artificial intelligence (AI)-enabled data centre facilities, primarily in Saudi Arabia.

Telecom companies such as Qatar’s Ooredoo, Saudi Arabia’s STC and the UAE’s Du and E& are continuing the expansion of their data centre facilities, while firms such as the UAE’s Khazna Data Centres plan to expand their capacity at home and abroad.

The scale of data centre projects coming to the market over the next few years or months is unprecedented.

Between 2020 and 2024, the GCC states awarded an average of $1.2bn of data centre construction contracts annually, which is the equivalent of the cost of just one thermal power plant with roughly 1GW of capacity.

The GCC region’s average data centre contract award value over this five-year window equated to a mere 0.48% of total contracts awarded in 2024, a record year, of $264bn. 

This is expected to change with the announcement of new projects or ongoing schemes that aim to meet the region’s growing demand for cloud services and AI-based applications.

Related read: Region poised for huge investment in data centres

According to the latest available data from regional projects tracker MEED Projects, close to $7bn-worth of data centre projects are under construction, while some $13bn are in the pre-execution phase.

Here, MEED presents a summary of the top five projects that are planned or under execution.

DataVolt and Neom data centre project phase 1

Saudi gigaproject developer Neom and Saudi Arabia-based DataVolt, a developer, investor and operator of data centres, signed an agreement in January to develop a major data centre infrastructure in Oxagon, Neom’s industrial cluster.

Funded by an investment of about $5bn, the 1.5GW first phase of the project is expected to be operational by 2028. Neom expects the facility to be entirely powered by renewable energy, providing a fully integrated, end-to-end data centre solution.

The project will utilise advanced cooling technologies and is designed to operate at net-zero carbon emissions, addressing the global challenges of power availability and the carbon footprint posed by data centres.

Amazon Web Services Saudi Arabia Zone

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”.

Each availability zone has independent power, cooling and physical security and is connected “through redundant, ultra-low-latency networks”. The new AWS Region aims to provide options for various companies and organisations to run their applications and serve end users from data centres located in Saudi Arabia, “ensuring that customers who want to keep their content in-country can do so”.

Khazna 100MW data centre in Ajman

London-headquartered construction firm Laing O’Rourke has started construction on a new data centre in Ajman, UAE, which is being developed by UAE-based data centre and cloud services provider Khazna Data Centres.

The multibillion-dirham project will be the UAE’s largest AI-enhanced data centre, with an expected capacity of 100MW. Expected to be completed next year, the planned Tier 3 data centre project will cover an area of ​​100,000 square metres and will include 20 data halls, each with a capacity of 5MW.

Desert Dragon

Riyadh-headquartered data centre developer ICS Arabia is expected to start construction works imminently on the first of three data centres it plans to develop in Saudi Arabia. The cluster’s first data centre, Desert Dragon, is located in Al-Kharj, southeast of the capital Riyadh.

The 65MW data centre aims to achieve a Tier 3-level certification. ICS Arabia said in September last year, when it announced breaking ground on the projects, that the first data centre was expected to become operational in 2026.

The project’s second phase, a 50MW data centre in Jeddah, is expected to begin construction this February, with a target operations date in the fourth quarter of 2026. The project’s third phase will encompass 72MW facilities in Dammam and Neom. Construction is expected to commence in September. 

The firm is developing the project in a joint venture with Shanghai-based Lumaotong Group and China Mobile International. The joint venture plans to invest a total of $1.9bn in the projects.

Ezditek 64MW Riyadh data centre

Ezdihar Advanced Company for Information Technology (EzdiTek) is undertaking the construction of a 64MW data centre project in Riyadh’s Al-Jenadriyah Technical Zone, Saudi Arabia.

The planned cloud-based data centre facility will have a capacity of 64MW, requiring an investment of around AED2.64bn. The land allocated for Ezditek’s data centre project is 55,000 square metres.

Related read: Kent acquires Sudlows Consulting

https://image.digitalinsightresearch.in/uploads/NewsArticle/13430689/main.gif
Jennifer Aguinaldo

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Prequalification begins for Riyadh King Salman Stadium

    27 November 2025

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Sports Ministry has issued a notice inviting companies to prequalify for a contract to design and build the King Salman International Stadium in Riyadh.

    The notice was issued on 26 November, with a prequalification deadline of 16 February.

    The stadium will cover an area of about 660,000 square metres (sq m) and will have a seating capacity of 92,000.

    The stadium will feature a 150-seat royal suite, 120 hospitality suites, 300 VIP seats and 2,200 dignitary seats.

    The plan also includes several sports facilities covering more than 360,000 sq m, including two training fields and fan zones; a closed sports hall; an Olympic-sized swimming pool; an athletics track; and outdoor courts for volleyball, basketball and padel.

    The new stadium will host the final of the 2034 Fifa World Cup and will serve as the Saudi national football team’s main headquarters.

    US-based architectural firm Populous is the lead architect for the stadium.

    Construction of the stadium is expected to be completed by 2029.

    The stadium will be located next to King Abdulaziz Park.

    Saudi Arabia stadium plans

    In August last year, MEED reported that Saudi Arabia plans to build 11 new stadiums to host the Fifa World Cup in 2034.

    Eight stadiums will be located in Riyadh, four in Jeddah and one each in Al-Khobar, Abha and Neom.

    An additional 10 cities will host training bases. These are Al-Baha, Jazan, Taif, Medina, Alula, Umluj, Tabuk, Hail, Al-Ahsa and Buraidah.

    There are expected to be 134 training sites across the kingdom, including 61 existing facilities and 73 new training venues.

    The kingdom was officially selected to host the 2034 Fifa World Cup through an online convention of Fifa member associations at the Fifa Congress on 11 December 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15166460/main.jpg
    Yasir Iqbal
  • Morocco signs $861m deal for polysilicon plant

    27 November 2025

    Register for MEED’s 14-day trial access 

    Morocco has signed a MD8bn ($861m) investment agreement with GPM Holding to establish the country’s first polysilicon manufacturing plant in the southern province of Tan-Tan.

    GPM Holding is a US-based company and a key partner in Green Power Morocco (GPM), which specialises in the installation and maintenance of photovoltaic solar panels.

    GPM is a joint venture with UAE-based renewable energy company Amea Power.

    The planned facility will be located in the El-Ouatia industrial zone, according to the North African country’s Ministry of Investment.

    The facility will have an annual production capacity of 30,000 tonnes, with 85% earmarked for export.

    The plant is expected to generate 1,500 direct and more than 2,000 indirect jobs and strengthen Morocco’s position in renewable energy supply chains, particularly in the manufacturing of solar panel components, according to the Ministry of Investment.

    Last year, GPM completed a 34MW solar project in Hjar Nhal, south of Tangier, under a corporate power purchase agreement.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15163133/main.jpg
    Wil Crisp
  • Bahrain’s economy walks precarious path

    26 November 2025

    Download the PDF

    MEED’s December 2025 report on Bahrain includes:

    > COMMENT: Manama pursues reform amid strain
    > GVT & ECONOMY: Bahrain’s cautious economic evolution
    > BANKING: Mergers loom over Bahrain’s banking system
    > OIL & GAS: Bahrain remains in pursuit of hydrocarbon resources
    > POWER & WATER: Bahrain advances utility reform
    > CONSTRUCTION: Bahrain construction faces major slowdown
    > TRANSPORT: Air Asia aviation deal boosts connectivity

    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15159666/main.gif
    MEED Editorial
  • Rua Al-Madinah signs hotel operations agreement

    26 November 2025

    Saudi Arabia’s Rua Al-Madinah, the Public Investment Fund (PIF) subsidiary tasked with Medina’s tourism and cultural development, has signed a hotel operations and management agreement with Adeera Hospitality for its Rua Al-Madinah project.

    Adeera Hospitality, which PIF also backs, will operate two buildings comprising 250 hotel rooms and 120 residential units under its Alia brand within the Rua Al-Madinah project, which is being developed near the Prophet’s Mosque.

    Adeera joins Rua Al-Madinah’s roster of hotel operators, which includes leading global hospitality brands such as Marriott, Hyatt, Accor and Hilton.

    The Rua Al-Madinah development includes the construction of 18 hotels under three categories – three-star, four-star and five-star – as well as secondary infrastructure.

    The towers will range in height from 11 to 21 storeys.

    Rua Al-Madinah estimates that superblock five will require 430,000 cubic metres of concrete, 875,000 square metres of block wall, 423,000 sq m of drywall, 74,000 tonnes of steel rebar, 215,000 sq m of tiles, and 228,000 sq m of facades, curtain walls and windows.

    The hotels, which will mainly provide accommodation for pilgrims visiting the holy city, will have a built-up area of about 65,000 sq m.

    In February last year, the client awarded two contracts worth SR300m ($80m) to international consulting firms for work on the superblocks four and five components of the Rua Al-Madinah project.

    Rua Al-Madinah signed a contract with US-based engineering firm Jacobs for design consultancy services for 12 hotels and other infrastructure for superblock four of the project.

    Another contract was signed with US-based KEO International Consultants to oversee the implementation of the superblock five project.

    Other consultants working on superblock five include US-based Perkins Eastman and Singapore-based Meinhardt. 

    UAE-based Ema Design is the interior designer.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15158923/main.jpg
    Yasir Iqbal
  • Meraas confirms $517m The Acres villas contract award

    26 November 2025

    Dubai-based real estate developer Meraas, now part of Dubai Holding Group, has confirmed that it has awarded a AED1.9bn ($517m) contract to build 642 three-, four- and five-bedroom villas as part of the first phase of its residential community, The Acres, in Dubailand.

    The contract was awarded to the local firm United Engineering Construction Company.

    MEED exclusively reported in August that Meraas had awarded the contract for the project.

    The Acres project is designed by local architectural practice U+A Architects.

    The masterplan includes 1,200 villas ranging from three to seven bedrooms.

    It also features a nursery, school, clinic, mosques, clubhouses, a retail zone, a 2,000-square-metre garden, walking and biking trails, an outdoor gym, children’s playgrounds, swimming pools and sports facilities.

    The latest announcement follows Meraas awarding a AED440m ($120m) contract for the construction of the Northline residential project in the Al-Wasl area of Dubai.

    The contract was awarded to the local GCC Contracting Company.

    The project includes the construction of three residential buildings. Construction work is expected to begin shortly, and the project is slated for completion by 2027.

    Meraas’ latest project contract awards in Dubai are backed by heightened real estate activity in the UAE’s construction market. Schemes worth over $323bn are in the execution or planning stages, according to UK analytics firm GlobalData.

    The company forecasts that the output of the UAE’s construction sector will grow by 4.2% in real terms in 2025, supported by developments in infrastructure, energy and utilities, as well as residential construction projects.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15158561/main.jpg
    Yasir Iqbal