Alfanar’s $1.4 Billion Investment in Saudi Data Centers to Enhance Digital Infrastructure

Alfanar Global Development plans to invest $1.4 billion in four data centers in Saudi Arabia, focusing on sustainability and efficiency to support cloud computing and AI solutions. The project aims to enhance the Kingdom’s digital infrastructure, aligning with Vision 2030 and attracting global businesses.

Alfanar Global Development intends to invest $1.4 billion in the expansion of data centers across Saudi Arabia. This initiative was disclosed at the LEAP 2025 event, where the company outlined plans to construct four strategically located data centers in Riyadh and Dammam. The facilities are designed to bolster cloud computing and artificial intelligence (AI) solutions for both public and private sector entities.

While specific details regarding the capacity and timelines for these data centers remain limited, Alfanar emphasizes that sustainability and efficiency will be prioritized in their development. The project aligns with the Kingdom’s environmental and green energy objectives, contributing to a more sustainable future.

Amer Al Ajmi, the Executive Vice President, stated that this venture represents a significant step towards the realization of Vision 2030. He remarked, “By creating a secure and scalable digital infrastructure, we are not only advancing the Kingdom’s digital economy but also attracting global businesses, putting Saudi Arabia on the map as a leader in data storage and technology-driven innovation.”

Alfanar, characterized as a global project developer, is engaged in various projects beyond data centers, including those in energy and healthcare, across several countries such as Bahrain, the UAE, Spain, the UK, and India. The company has successfully completed four data center projects in Saudi Arabia, serving notable clients including the Saudi Red Crescent Authority and the General Authority for Statistics.

Saudi Arabia’s data center market is booming, with prominent cities such as Dammam, Riyadh, and Jeddah attracting significant interest from developers. Notable companies like DataVolt and Equinix have recently revealed plans for data centers within the Kingdom. Furthermore, Microsoft completed its cloud region constructions, expected to be operational in 2026, while other major cloud providers are also expanding their presence in Saudi Arabia.

In summary, Alfanar’s substantial investment in data centers is a strategic move to enhance Saudi Arabia’s digital infrastructure, supporting the country’s Vision 2030 initiatives. This development is expected to propel advancements in cloud computing and AI solutions, thereby ensuring the Kingdom’s leadership in the data storage sector. As demand for data centers continues to rise, Alfanar’s commitment to sustainability and efficiency represents a promising step toward achieving national environmental goals.

Original Source: www.datacenterdynamics.com