Riyadh – Sharikat Mubasher: Financial services provider BSF Capital, and Al Moammar Information Systems (MIS), a Saudi Arabian information technology company, have signed a letter of intent to increase the capacity of data centers in the kingdom up to 64 megawatts.

BSF Capital signed the deal, which has an estimated value ranging between SAR 1.95 billion (US$ 520 million) and SAR 2.5 billion (US$ 666 million), for and on behalf of Saudi Data Centre Fund 1 (the ‘Fund’) as per a recent statement on Tadawul.

The Saudi Data Centre Fund 1, was first announced in 2021 with the aim to construct six hyper-scale data centers in the kingdom with an accumulated capacity of 24MW. The recently signed letter of intent will reportedly remain in force for 90 days until the parties reach mutually agreed-upon terms.

Saudi Arabia is one of the fastest-growing data center markets in the Middle East and has been attracting billion-dollar investments from all major international technology companies, including a whopping US$ 5.3 billion investments by Amazon Web Services (AWS).

According to Arizton Advisory & Intelligence, the Saudi Arabian data center market was valued at UD$ 1.7 billion in 2023, and is expected to reach US$ 3.8 billion by 2029, growing at a Compounded Average Growth Rate (CAGR) of 10.13 percent to reach an IT load capacity of 175 MW.