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• 
  Edgnex acquires Nordic data centre developer

  2 April 2025

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  Edgnex, a subsidiary of Dubai-based property developer Damac, has acquired Helsinki-headquartered data centre-focused real estate developer Hyperco as part of its European expansion strategy.

  Damac announced the acquisition on 31 March.

  Hyperco operates data centres in Finland and Sweden, "leveraging the region’s renewable energy sources, mature digital ecosystem and high connectivity", local media reports said.

  Hyperco's three co-founders and existing team will continue to lead operations through the next phase of growth, according to a statement by the company.

  Hussain Sajwani, founder of Damac Group, said his firm plans to "build a significant future capacity in the Nordics and establish a strong foothold in the market".

  Edgnex’s recent European activities include a €150m ($161.9m) joint venture in Greece with Public Power Corporation to develop a 12.5MW facility, expandable to 25MW, and a €400m commitment to build a 40MW data centre in Madrid, Spain.

  In January, Sajwani pledged $20bn to develop data centres in the US.

  Sajwani and then US President-Elect Donald Trump announced the plan on 7 January in Florida, a day after the US Congress certified Trump as the winner of the 2024 presidential election.

  The project’s initial phase covers establishing data centres in Texas, Arizona, Oklahoma, Louisiana, Ohio, Illinois, Michigan and Indiana.

  It was previously reported that the Dubai-based property developer plans to develop $1bn-worth of data centres in countries in Europe, Asia, Africa, the Middle East and the Commonwealth of Independent States.

  Edgnex is constructing two data centre facilities in Dammam and Riyadh in Saudi Arabia that will deliver 55MW in 2025. There are also plans for a data centre in Amman, Jordan, and another in Turkiye in partnership with Vodafone.

  In May, Damac announced its entry into the Indonesian market with plans to build a 15MW data centre in Jakarta. The first construction phase for the facility is scheduled to be completed in the fourth quarter of 2025.

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  Jennifer Aguinaldo
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  Developers prepare Saudi round six solar IPP bids

  2 April 2025

  

   

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  Prequalified developers are forming teams to bid for the contracts to develop solar farms under the sixth round of Saudi Arabia's National Renewable Energy Programme (NREP).

  MEED understands that bids are due for the four solar photovoltaic (PV) independent power projects (IPPs) by 1 June.

  The four solar IPPs have a combined capacity of 3,000MW.

  A 1,400MW solar PV IPP will be located in Najran, while the smallest – the 400MW Al-Sufun solar IPP – will be in Hail.

  The 600MW Samtah and 600MW Al-Darb solar IPPs will be located in Jizan, a region that has been placed under security-related travel alerts by some countries and international firms.

  Most of the prequalified bidders participated in site visits, which Saudi Arabia’s principal buyer, Saudi Power Procurement Company (SPPC), conducted in late January.

  SPPC prequalified 16 companies that can bid as managing and technical members for the solar PV contracts. These are:

  • Abu Dhabi Future Energy Company (Masdar, UAE) 
  • Alfanar Company (local)
  • EDF Renewables (France)
  • Kahrabel (Engie, France)
  • FAS Energy (local)
  • Jinko Power (Hong Kong)
  • Korea Electric Power Corporation (Kepco, South Korea)
  • Marubeni Corporation (Japan)
  • Nesma Renewable Energy (local)
  • SPIC Hunaghe Hydropower Development (China)
  • Sumitomo Corporation (Japan)
  • TotalEnergies Renewables (France)
  • AlJomaih Energy & Water (local)
  • Sembcorp Utilities (Singapore)
  • AlGihaz Holding Company (local)
  • Korea Western Power Company (Kowepo, South Korea)

  The following five companies have been prequalified to bid as managing partners:

  • Jera Nex (Japan)
  • Power Construction Corporation of China (PowerChina)
  • China Power Engineering Consulting Group International Engineering (China)
  • Posco International (South Korea)
  • Saudi Electricity Company (SEC, local)

  Round six of the NREP will have a total combined capacity of 4,500MW, including the 1,500MW Dawadmi wind farm, for which a separate set of bidders has been prequalified.

  SPPC issued the prequalification request for round six of the NREP in September last year and received statements of qualifications from interested developers and developer consortiums the following month.

  SPPC is responsible for the pre-development, tendering and subsequent offtaking of the energy from the projects.

  US/India-based Synergy Consulting is the client's financial adviser for the NREP sixth-round tender. Germany’s Fichtner Consulting and US-headquartered CMS are the technical and legal consultants, respectively.

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  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13602412/main0154.jpg

  Jennifer Aguinaldo
• 
  Mitsubishi Power confirms Rumah 1 and Nairiyah 1 deal

  2 April 2025

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  Mitsubishi Power, part of Japan’s Mitsubishi Heavy Industries, has confirmed it has received two orders to supply six M501JAC gas turbines for the Rumah 1 and Al-Nairiyah 1 power generation projects in Saudi Arabia.

  Rumah 1 is located in the Central Region in Riyadh and is part of the previously planned Riyadh Power Plant 15. Nairiyah 1 is located in the Eastern Region.

  The scope includes the supply of generators and auxiliary equipment, Mitsubishi Power said in a statement.

  MEED exclusively reported that the Japanese original equipment manufacturer had been selected to supply its gas turbines for the independent power project (IPP) in November last year.

  A consortium comprising the local Saudi Electricity Company (SEC) and Acwa Power and South Korea’s Korea Electric Power Corporation (Kepco) won the contract to develop the Rumah 1 and Al-Nairiyah 1 IPP the same month.

  The power plants will deliver a combined 3.6GW, accounting for nearly 2.5% of the national grid’s capacity.

  The M501JAC turbines will be assembled at Mitsubishi Power Saudi Arabia’s Dammam factory.

  The 17,730 square-metre facility also provides services for gas turbine components.

  According to Mitsubishi Power, the plant features "a majority of Saudi employees, in line with the firm’s Saudi National programme".

  China’s Sepco 3 and South Korea's Doosan Enerbility will undertake the engineering, procurement and construction (EPC) contract for the projects, as MEED reported.

  The SEC, Acwa Power and Kepco team offered a levelised electricity cost (LCOE) of $cents 4.5859 a kilowatt-hour ($c/kWh) for Rumah 1 and 4.6114 $c/kWh for Al-Nairiyah 1.

  Acwa Power said that the two IPPs will require a combined investment of approximately SR15bn ($4bn). The IPPs are expected to reach commercial operations in Q2 2028. 

  Saudi Power Procurement Company (SPPC) received bids for the contracts for four thermal IPPs – the other two being the similarly configured Rumah 2 and Al-Nairiyah 2 – in August last year.

  The four power generation facilities will be developed using a build, own and operate model over 25 years. 

  SPPC’s transaction advisory team for the Rumah 1 and 2 and Al-Nairiyah 1 and 2 IPP projects comprises US/India-based Synergy Consulting, Germany’s Fichtner and US-headquartered Baker McKenzie. 

  Photo credit: Mitsubishi Power (for illustrative purposes only)

  ---

  MEED’s April 2025 report on Saudi Arabia includes:

  > GOVERNMENT: Riyadh takes the diplomatic initiative
  > ECONOMY: Saudi Arabia’s non-oil economy forges onward
  > BANKING: Saudi banks work to keep pace with credit expansion
  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > DATABANK: Saudi Arabia’s growth trend heads up

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13599792/main4910.jpg

  Jennifer Aguinaldo
• 
  Iraq approves two major energy project contracts

  2 April 2025

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  Iraq’s Council of Ministers has approved two major energy contracts that form part of the $10bn Gas Growth Integrated Project (GGIP), according to a statement from the prime minister’s office.

  French oil and gas company TotalEnergies and its partners are developing the GGIP.

  TotalEnergies is the main operator of the GGIP. Basra Oil Company (30%) and QatarEnergy (25%) are the other stakeholders.

  One of the two awarded contracts is focused on the development of the Ratawi gas field and the other is focused on the Common Seawater Supply Project (CSSP), which will transport seawater to oil fields for injection to increase production.

  The statement said that Iraq's Council of Ministers had approved the award of tender CSSP-ITT-06 from state-owned Basra Oil Company to China Petroleum Pipeline Engineering Corporation (CPP).

  The contract awarded to CPP is for the pipeline package, which involves the construction of a seawater pipeline.

  MEED reported that CPP was a frontrunner to win the pipeline package in May last year.

  CPP is a subsidiary of China National Petroleum Corporation and the primary builder of pipelines in its home country.

  The pipeline package is one of two major packages in the CSSP. The other major package focuses on developing a water processing facility.

  The pipeline contract awarded to CPP will be executed over 54 months, including 42 months for engineering, procurement and construction and 12 months for operation, maintenance and training.

  The second contract that has been approved is for a planned gas processing plant at the Ratawi gas processing complex project.

  The Ratawi field is also sometimes called the Artawi field.

  This contract has been awarded by Iraq’s state-owned South Gas Company to China Petroleum Engineering & Construction Corporation (CPECC).

  In January, MEED revealed that CPECC had emerged as the frontrunner to win the contract, which is estimated to be worth about $1.7bn.

  When commissioned, the planned facility is expected to process 300 million cubic feet a day of gas. Its capacity is expected to double when a second expansion phase becomes operational in the future.

  The Ratawi gas processing facility project aims to improve Iraq’s electricity supply by capturing gas that would have otherwise been flared at several oil fields, including:

  • Luhais
  • Majnoon
  • Ratawi
  • West Qurna 2
  • Tuba

  Large gas volumes are flared from these oil fields, causing significant environmental damage. Collecting and processing flared gas will generate increased hydrocarbons revenues and reduce ecological damage.

  The gas tapped and processed from the oil fields will then be used to supply power plants, helping to reduce Iraq’s power import bill.

  As well as supplying Iraq’s national gas network to generate electricity, the Ratawi gas processing complex will increase the production of gas products, including liquefied petroleum gas (LPG) and condensates.

  US-based consultant KBR has performed the front-end engineering and design work on the project.

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  Wil Crisp
• 
  Riyadh takes the diplomatic initiative

  2 April 2025

  

   

  Saudi Arabia has been at the centre of regional diplomatic activity through the early months of 2025, positioning itself as an intermediary in the Ukraine conflict and at the forefront of engagement with the new regime in Syria.

  The role of regional mediator is one that has in recent years been more closely associated with Qatar – particularly in relation to the Gaza conflict – and, on occasion, Oman.

  Riyadh’s decision to throw its weight behind diplomatic initiatives is part of what Abdulaziz Sager, chairman of the Saudi-based Gulf Research Centre, has described as a “bold multi-alignment strategy”, which seeks to balance Riyadh’s economic and security concerns and its regional leadership ambitions.

  Multipronged initiatives

  The kingdom has gained plaudits for its efforts to resolve the Ukraine war in particular. Following his talks with Crown Prince Mohammed Bin Salman (MBS) in Jeddah on 11 March, Ukraine’s President Volodymyr Zelenskyy said: “Saudi Arabia provides a crucial platform for diplomacy, and we appreciate this.”

  Zelenskyy added that he had “a detailed discussion on the steps and conditions needed to end the war” with the crown prince.

  The previous month, US secretary of state Marco Rubio had said Saudi Arabia had played an “indispensable role” in setting up bilateral negotiations between Moscow and Washington to discuss the conflict.

  Russia’s President Vladamir Putin has also praised the Saudi leadership for providing a platform for high-level meetings with the US and “creating a very friendly atmosphere”.

  Whether all this leads to a lasting peace deal for Ukraine remains to be seen, but Saudi Arabia’s attitude to conflict may be coloured somewhat by its own experiences over the past decade in Yemen.

  It is now 10 years since it launched a bombing campaign against Yemen’s Houthi rebels in March 2015, and the war has not gone as Riyadh had hoped, with the Houthis proving far more resilient than anticipated.

  Saudi Arabia’s southern border has at least been relatively quiet since a truce took hold in 2022, but a comprehensive peace deal has proved elusive.

  Riyadh has also been re-engaging in the Levant this year, in light of the new regime in Damascus.

  The new Syrian president Ahmed Al-Sharaa travelled to Riyadh in early February, on his first trip abroad since taking power. Saudi Foreign Minister Prince Faisal Bin Farhan had been in Damascus a week earlier.

  There are some key issues at stake for Riyadh. The regime of President Bashar Al-Assad had overseen the industrial-scale production of the amphetamine-type stimulant Captagon, much of which was smuggled into Saudi Arabia and other Gulf states. Saudi efforts to disrupt the trade – both at its borders and via lobbying of the Syrian authorities – had failed to stem the flow of drugs.

  In addition, Hasan Alhasan, senior fellow for Middle East Policy at the International Institute for Strategic Studies, has pointed out that between 500,000 and 2.5 million de facto Syrian refugees are thought to be living in Saudi Arabia – a fact that gives Riyadh a clear interest in Syria’s stability, particularly if it wants to encourage them to return home.

  “Saudi Arabia views the fall of the Assad regime as an opportunity to reassert its influence in the Levant,” he asserted in a recent commentary.

  The ousting of Assad in late 2024 and the recent Israeli campaign against Hezbollah has also changed the situation on the ground in Lebanon, encouraging Saudi Arabia to reconsider its approach there too.

  MBS hosted Lebanon’s recently elected President Joseph Aoun on 3 March. Following their meeting, Saudi Arabia said it would look again at allowing Lebanese exports to Saudi Arabia and letting its own citizens travel to Lebanon.

  Manoeuvring around Trump

  The Saudi diplomatic push may also be motivated by a desire to ensure that relations with Washington remain on a positive footing in the wake of Donald Trump’s re-election as US president.

  At first, it appeared that the bilateral relations would follow a similar pattern to Trump’s first term.

  In January, MBS said in a phone call with Trump that Saudi Arabia was planning to invest some $600bn in the US over the coming four years, which the US president suggested should probably be increased to $1tn. This echoed the signing of $460bn-worth of defence deals when Trump made Saudi Arabia his first foreign trip as president in May 2017.

  Riyadh appears to have conceded to Trump’s higher figure, with the US president saying in early March: “I said I'll go if you pay $1tn to American companies, meaning the purchase over a four-year period of $1tn, and they've agreed to do that. So, I'm going to be going there.”

  However, other aspects of the bilateral relationship are more difficult and less predictable. Trump had been pushing Saudi Arabia to join Bahrain, the UAE and Morocco in normalising relations with Israel, but in light of the war in Gaza and Trump’s own plans for the ethnic cleansing of Palestinians from the strip, that looks like a stretch too far.

  Trump will nevertheless have been pleased by the decision by Saudi Arabia and the other members of the Opec+ bloc in early March to unwind some of the production restrictions they had voluntarily agreed.

  From April onwards, the eight-strong group will start to bring 2.2 million barrels a day back onto the market over the course of 18 months. That fits in with Trump’s call in January, soon after taking office, for Riyadh and Opec to do more to help bring oil prices down.

  However, that decision may also create fiscal challenges for the Saudi government, as any rise in production could be more than offset by lower prices.

  Saudi Aramco has announced plans to trim its dividend payouts this year to $85.4bn – down from $124bn in 2024. These payments are a vital source of revenues both for the central government and for its Public Investment Fund (which holds a 16% stake in Aramco)

  All that could force some public sector spending constraint in the kingdom, in a sign that balancing diplomacy and financial interests is not always straightforward.

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  MEED’s April 2025 report on Saudi Arabia includes:

  > UPSTREAM: Saudi oil and gas spending to surpass 2024 level
  > DOWNSTREAM: Aramco’s recalibrated chemical goals reflect realism
  > POWER: Saudi power sector enters busiest year
  > WATER: Saudi water contracts set another annual record
  > CONSTRUCTION: Reprioritisation underpins Saudi construction
  > TRANSPORT: Riyadh pushes ahead with infrastructure development
  > BANKING: Saudi banks work to keep pace with credit expansion

  https://image.digitalinsightresearch.in/uploads/NewsArticle/13483143/main.gif

  Dominic Dudley