Saudi data center capacity projected to boom, but financing a challenge

Saudi Arabia's data center capacity is projected to reach one gigawatt by twenty thirty, making it the fastest-growing market in the Gulf. The Public Investment Fund is targeting more than six gigawatts over the coming decade, but financing even half that would require up to thirty-two billion dollars in debt—more than the kingdom's banks are likely to assemble on their own, Semafor reports, citing an Alvarez & Marsal analysis. Government demand, data sovereignty laws keeping infrastructure in-country, and hyperscalers' preference to lease rather than build are driving the boom, while cheap power and plentiful land sweeten the pitch. Major investors like KKR are already backing Gulf tech infrastructure, even five months after Iranian drones struck AWS sites in the UAE and Bahrain.

Listen to this story

Hear this and more stories in a personalized audio briefing.

Open The Chonkerton