Saudi Arabia’s digital infrastructure pipeline could soon expand again as Al Moammar Information Systems (MIS) evaluates another wave of data center development across the Kingdom. The company has signed a Memorandum of Understanding (MoU) with Saudi Data Center Fund 1 to assess the feasibility of building three new facilities in Riyadh, Jeddah, and Dammam. If the project advances beyond the study phase, the proposed campuses would collectively deliver 48MW of compute capacity, reinforcing Saudi Arabia’s position as one of the Middle East’s fastest-growing infrastructure markets. The agreement also signals that local partnerships continue to shape the Kingdom’s long-term digital infrastructure ambitions.
Feasibility Study Targets Three Strategic Saudi Cities
The newly signed MoU gives both organizations a framework to evaluate the commercial and technical viability of developing three separate facilities across Saudi Arabia’s largest economic hubs. Riyadh, Jeddah, and Dammam remain central to the country’s digital transformation strategy because they support government services, enterprise workloads, financial institutions, and expanding cloud demand. Together, the proposed projects would provide 48MW of compute capacity if construction moves ahead. However, neither organization has disclosed an estimated investment value for the initiative.
The memorandum became effective on July 21, 2026, and will remain valid for 90 days unless both parties agree to extend its duration. During this period, the companies will determine whether the development should proceed under a formal execution agreement. If both sides move forward, MIS intends to lead the initiative as the designer, developer, and manager of all three facilities. The structure places the company at the center of both project delivery and long-term operational oversight.
Partnership Builds on Earlier Saudi Infrastructure Commitments
The latest agreement extends an established relationship between MIS and Saudi Data Center Fund 1 rather than creating a new partnership. Saudi Data Center Fund 1 operates on behalf of Saudi Fransi Capital, an investment company owned by Banque Saudi Fransi, and was established in 2022 alongside MIS to finance six hyperscale data centers across Saudi Arabia. Those initial projects were designed to deliver a combined IT capacity of 24MW. The collaboration has expanded steadily over the past several years. In 2024, MIS secured an agreement valued at up to SAR 2.5 billion (approximately $666 million) to increase the fund’s data center capacity by as much as 64MW. The following year, the company received another contract to add an additional 112MW of infrastructure. Consequently, the latest feasibility study reflects a broader pattern of incremental capacity expansion rather than a standalone investment decision.
Founded in 1979 and headquartered in Riyadh, Al Moammar Information Systems has evolved beyond traditional IT consulting into a broader digital infrastructure provider. Alongside managed services, the company has strengthened its position within Saudi Arabia’s growing data center ecosystem through development and operational responsibilities. That combination enables MIS to participate across multiple stages of infrastructure delivery, from planning through long-term facility management. Should the proposed developments receive final approval, the company would oversee every major phase of execution. This approach reflects how regional technology providers are increasingly taking ownership of critical infrastructure rather than limiting their involvement to systems integration or managed services. The strategy also aligns with Saudi Arabia’s broader effort to develop domestic expertise across digital infrastructure projects.
Saudi Arabia Deepens Its Regional Data Center Leadership
Saudi Arabia continues to strengthen its standing as one of the Middle East’s largest data center markets. According to research,, the Kingdom currently hosts 61 operational facilities, placing it ahead of the United Arab Emirates, which hosts 58. Growing enterprise digitization, government modernization programs, cloud adoption, and artificial intelligence investments continue to drive demand for additional capacity across the country. International technology providers have also accelerated their presence in the Saudi market. Zoom became one of the latest global companies to establish infrastructure in the Kingdom after leasing data center capacity in June. Meanwhile, ongoing investments from domestic developers and financial institutions indicate that Saudi Arabia’s infrastructure expansion increasingly combines international demand with locally financed development models.
The proposed 48MW project is notable not because of its size alone but because it reflects how Saudi Arabia’s data center market continues to mature through repeat partnerships rather than isolated announcements. Developers are increasingly building long-term investment relationships that allow infrastructure capacity to scale in stages as demand evolves. This reduces execution risk while giving operators flexibility to align new deployments with enterprise and hyperscale requirements. For MIS, the feasibility study represents another step toward becoming a vertically integrated infrastructure developer within Saudi Arabia’s digital economy. If the three facilities proceed, they would further reinforce the Kingdom’s strategy of expanding domestic compute capacity across multiple metropolitan regions while supporting broader ambitions around cloud services, artificial intelligence, and digital transformation.
