Saudi data centre expansion eyes 1 GW by 2030, but funding hurdles loom

Consultants forecast that Saudi Arabia will achieve 1 gigawatt of data centre capacity by 2030, outpacing other Gulf states. The announced pipeline is even larger, with the Public Investment Fund's HUMAIN initiative aiming for more than 6 GW over the next decade, a venture that could need as much as $32 billion in debt financing. Local banks are expected to fall short of providing half that sum, according to Alvarez & Marsal author Kurt Davis Jr. Institutional investors are already showing interest; KKR has allocated part of its new infrastructure fund to Gulf tech projects.

The surge is fueled by extensive government demand, new data-sovereignty legislation that keeps storage within the country, and hyperscalers preferring to lease space. Cheap electricity and abundant land further enhance the business case, even as recent Iranian drone strikes on AWS facilities in the UAE and Bahrain have sparked security worries.