Saudi 300MW data centre project advances

17 August 2022

Construction works have advanced on the first phase of the planned 300MW data centre projects being implemented by Saudi-headquartered Quantum Switch Tamasuk (QST) for the Ministry of Communications & Information Technology (MCIT).

The project comprises six 50MW data centre facilities to be located in Riyadh, Dammam, Jeddah and Neom.

The plan entails building 60MW of data centre capacity every year until 2026.

MEED estimates the budget for the entire project is at least $2bn.

The first so-called hyper-scale data centre facility is located in King Salman Energy Park (Spark), an industrial complex in Dammam.

It is understood QST will design, build, finance and operate the data centre facilities.

Client objective

“QST’s data centres will be designed and built to meet the demands of hyper-scale cloud service providers, international gaming and media platforms, and global content delivery networks, with a view to attracting them to locate their main regional hubs in the kingdom,” the company said in February when it announced the project.

The data centres will also host government digital infrastructure development initiatives including the Saudi Internet Exchange Point, a non-profit scheme spearheaded by MCIT and King Abdulaziz City for Science & Technology.

QST and MCIT said the facilities will feature the latest designs to minimise cooling requirements. They also intend to develop and secure renewable energy sources to further enhance sustainability.

“This effort will create a significant demand for new green energy; both parties are actively evaluating the feasibility of connecting solar photovoltaic facilities to the data centres,” the firms said.

This article has been unlocked to allow non-subscribers to sample MEED’s content. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s business intelligence, subscribe here
https://image.digitalinsightresearch.in/uploads/NewsArticle/9933322/main2610.jpg
Jennifer Aguinaldo
Related Articles
  • Saudi Arabia signs $403m Syria infrastructure loans

    9 November 2026

    The Saudi Fund for Development (SFD) has signed six concessional loan agreements worth more than $403m to support power, water, healthcare, housing and other infrastructure projects in Syria.

    The agreements include a $90m project to rehabilitate generating units at the Aleppo thermal power plant. The project is expected to benefit about 5 million people by restoring power-generation capacity and strengthening the stability of the national electricity grid.

    The Aleppo thermal power plant has five generating units and an installed capacity of approximately 1,100MW. It is understood that at least three of the five generating units are out of operation and require rehabilitation. According to local media reports, rehabilitating these three units is estimated to take 18-24 months.

    A further $30m will be allocated to upgrading Syria’s drinking water metering system. The project involves supplying and installing 300,000 smart water meters across several governorates, benefiting approximately 1.5 million people.

    The remaining agreements cover civil defence, housing, healthcare and public finance.

    A $105m loan will support the construction, rehabilitation and equipping of 25 civil defence centres across several governorates. The project is expected to benefit more than 7 million people and strengthen emergency response and disaster management capabilities.

    A further $60m will finance the rehabilitation of up to 10,000 damaged housing units in various areas of the country.

    The healthcare sector will receive $100m to rehabilitate, construct and equip hospitals and health centres. The funding will support restoring essential and specialised healthcare services and expanding access to medical facilities.

    The final agreement, worth more than $18m, will support the digital transformation and institutional development of Syria’s Ministry of Finance by implementing an integrated financial services system.

    The agreements were signed by SFD CEO Sultan Al-Marshad and Syrian Finance Minister Mohammed Yisr Barnieh in Riyadh on 5 November.

    The financing is part of Saudi Arabia’s wider support for Syria’s recovery. In September 2025, the kingdom provided two grants to Syria to supply crude oil and cover part of government employees’ salaries for three months.

    That same month, Saudi Arabia’s Acwa and Water Transmission Company (WTCO) signed a technical services agreement with Syria’s Ministry of Energy and German engineering group Fichtner to study the country’s water resources and identify future desalination and water transmission projects.

    The work will examine the potential for desalination and water transmission capacity of up to 1.2 million cubic metres a day. WTCO has said the proposed transmission network could extend for about 400 kilometres.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21211540/main0549.jpg
    Mark Dowdall
  • Frontrunners emerge for Saudi substation projects

    9 November 2026

     

    China’s TBEA Shandong Luneng Taishan Cable Company (TBEA) and Egypt’s Elsewedy have submitted the lowest bids for two substation projects in Riyadh Province, estimated to cost a combined $100m, sources have confirmed to MEED.

    The $50m Qiddiya 2 Bulk Supply Point (BSP) project will provide a new bulk supply point to meet electricity demand in the Qiddiya development area. The scope includes constructing a main substation building and outdoor electrical yard, along with power transformers, high- and medium-voltage switchgear, protection and control systems, and supervisory control and data acquisition links.

    The $50m Thadeq photovoltaic (PV) substation project will support grid connections and power exports from the Thadeq solar PV development. The scope includes a control building, outdoor switchyard, power transformers, switchgear, protection systems and Scada integration.

    It is understood that both projects involve the construction of 380kV BSP substations.

    Saudi Energy is the client for both projects.

    The two tenders were issued earlier this year, with bids submitted in August and November for the Thadeq PV and Qiddiya 2 BSPs, respectively.

    At Qiddiya, the additional infrastructure will support the development of entertainment, tourism, sports and residential facilities. Trading & Development Partnership is also developing a separate 380/132kV substation, known as BSP #9078, at Qiddiya.

    The Thadeq project is part of the infrastructure required to connect new solar generation capacity to the national grid.

    Saudi Energy has tendered several other 380kV substations and associated transmission lines this year, including projects serving planned solar and wind developments in the kingdom’s central, western and southern regions.

    Bids were recently submitted for a separate BSP expansion project at Qurayyat in Al-Jawf Province, involving the construction of a 400kV substation to support higher power demand and improve grid reliability in the area. 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21210408/main.jpg
    Mark Dowdall
  • Contractor wins $197m Doha infrastructure works

    6 November 2026

     

    Register for MEED’s 14-day trial access 

    Qatar’s Public Works Authority (Ashghal) has awarded an estimated QR722m ($197m) contract to develop roads and infrastructure north of Al-Rifaa Street in Doha.

    The contract was awarded to local firm Tadmur Contracting Company.

    Six other contractors submitted bids: 

    • Qatar Trading & Contracting Group ($244m)
    • Iris Construction Tourism Industry & Trade ($259m)
    • Lotus Trading & Contracting ($260m)
    • Generic Engineering Technologies & Contracting ($261m)
    • Alghanim International / National Industrial Contracting ($268m)
    • Hamad Bin Khalid Contracting Company ($281m)

    The scope of work covers the construction of more than 34 kilometres of roads, dedicated plot developments, site clearance, backfill and earthworks.

    The package also requires the installation of surface and groundwater drainage systems, a foul-water drainage network and treated sewage effluent lines.

    In addition, the contractor will deliver a dedicated pumping station, an emergency flood area pond, 3,735 car parking spaces, road cross-sectional elements and verge parking bays.

    Secondary infrastructure works include electrical distribution, water mains, utility lines, manholes, gully pots and house connections, along with kerbing, road pavement works, landscaping, street lighting, road markings and directional signage.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21204827/main.jpg
    Yasir Iqbal
  • Stakeholders aim to sign Iraq pipeline deal by year end

    6 November 2026

     

    Stakeholders expect a key contract to be signed before the end of the year for the development of a major oil export pipeline network in Iraq, according to industry sources.

    Iraq and Syria’s governments, state-owned oil companies and a consortium led by Qatar’s UCC are currently discussing the terms.

    If all parties agree to the proposed deal, the UCC-led coalition will become the selected developer responsible for tendering engineering, procurement and construction (EPC) contracts for the project.

    The consortium includes US-based Chevron, the investment company TI Capital and France’s TotalEnergies.

    The proposed plan will use a fast-track framework to bring the pipelines online as quickly as possible.

    One source said: “The plan that is being discussed is highly unusual, because it is such a large-scale pipeline project and it would be brought online in a relatively short timeframe.”

    A team from UCC is currently in Iraq for meetings with government officials to discuss the project, one source said.

    The project will be focused on four pipeline packages:

    • Basra to Najaf
    • Najaf to Haditha
    • Haditha to Fish Khapour
    • Haditha to Banias Port in Syria

    In July, Iraq’s cabinet approved state-owned Basra Oil Company signing a ​heads of agreement and a non-disclosure agreement with the UCC-led consortium to explore possible future oil pipeline projects.

    Under the terms of the agreement, the consortium is preparing technical and financial feasibility studies for strategic export pipeline projects.

    Also in July, US-based KBR was awarded a consultancy contract for the section of pipeline due to extend from Basra to Haditha.

    In April, Iraq announced the allocation of $1.5bn for the Basra-Haditha route, while the larger scheme is estimated at around $5bn.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181262/main.jpg
    Wil Crisp
  • Taqa shortlists 17 contractors for Mirfa-Liwa scheme

    6 November 2026

     

    Up to 17 contractors have been invited to submit bids for a major water transmission and distribution scheme serving Mirfa, Madinat Zayed and Liwa in Abu Dhabi, a source close to the project has confirmed to MEED.

    The project, originally estimated to cost $775m, comprises a water transmission system from Mirfa, alongside distribution networks serving farms and settlements in Abu Dhabi’s western region.

    In October, MEED exclusively reported that a request for proposals had been issued, with bids due on 5 January 2027, following an extension from the initial deadline of 11 November 2026.

    The Mirfa-Liwa scheme has been in procurement for several years and was previously tendered in December 2024 as an engineering, procurement and construction scheme, divided between transmission and distribution works.

    As MEED understands, it was recently re-tendered under a design, build and operate model, extending the contractor’s responsibilities to operating the infrastructure after construction.

    According to sources, the full list of contractors invited to bid for the tender includes:

    • Afcons Infrastructure (India)
    • Alkhorayef Water & Power Technologies (Saudi Arabia)
    • China Machinery Engineering Corporation (China)
    • China National Chemical Engineering (China)
    • China Tiesiju Civil Engineering Group (China)
    • Danway Electrical & Mechanical Engineering (UAE)
    • Emarat Aloula Contracting (UAE)
    • FCC Aqualia (Spain)
    • Gulf Contractors Company (UAE)
    • Hydropower Energy & General Construction (UAE)
    • Jereh Oil & Gas Engineering Corporation (China)
    • Mapa (Turkiye)
    • Nesma & Partners Contracting Company (Saudi Arabia)
    • Orascom Construction (Egypt)
    • Power Construction Corporation of China (China)
    • Tecton Engineering & Construction (UAE)
    • Tristar Engineering & Construction (UAE)

    According to details seen by MEED, the scope includes a pumping station at Mirfa with a capacity of 128 million imperial gallons a day, approximately 125 kilometres of transmission pipelines to Muzairah, with branches to Madinat Zayed and Liwa Summit, and storage tanks at the three locations.

    The distribution network is divided into four geographic clusters covering Liwa East, Liwa West, Madinat Zayed and Seih Al-Kheir. The works include associated pipelines, pumping stations and storage facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21181223/main.jpg
    Mark Dowdall