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This week, STC subsidiary center3 has unveiled a plans to expand its data centre infrastructure to reach a total capacity of 1 Gigawatt by 2030.
The company, which has already invested approximately $3 billion in its existing infrastructure, plans to inject an additional $10 billion into developing new, high-density, hyperscaler-ready data centres by the end of the decade. These facilities, designed to support AI workloads and high-performance computing (HPC), will be strategically located throughout Saudi Arabia, Bahrain, and other international markets.
The expansion aligns closely with Saudi Arabia’s Vision 2030 digital transformation objectives, aiming to establish the Kingdom as a major digital hub that localizes digital content and services within the region.
“We are not just expanding data centers, we are enabling the future digital economy. With 1 Gigawatt as our target, we are laying the foundation for AI, cloud, and hyperscale workloads, ensuring that Saudi Arabia and the region have the world-class infrastructure to lead in the next wave of global innovation,” said Fahad AlHajeri, CEO of center3.
center3 aims to reach a significant milestone of 300 megawatts (MW) of installed capacity by 2027 with these next-generation facilities.
The expansion is also underscored by a strong commitment to sustainability. center3 is incorporating renewable energy sources, energy-efficient cooling technologies, and responsible resource management practices into its data center operations. Given the global push for sustainable digital infrastructure, this approach positions center3 as a frontrunner in marrying technological advancement with environmental stewardship.
This strategic expansion effort is situated within a broader growth context for the Saudi Arabian data center market, which is projected to rise from $1.33 billion in 2024 to $3.9 billion by 2030, representing a compound annual growth rate (CAGR) of 19.6%. This market surge is driven by substantial investments from global hyperscalers such as Google, Amazon Web Services, Microsoft, and Oracle, alongside large-scale infrastructure projects like NEOM and LEAP Riyadh 2025.
center3, which was established as a subsidiary of the STC in late 2022, already operates more than 25 data centers across Saudi Arabia. Its recent expansion of the Khurais data center in Riyadh, adding 9.6 MW of capacity, is part of an ongoing strategy to quadruple its data center capacity within the region over the coming years. This expansion not only supports hyperscaler and cloud growth but also meets the increasing requirements of enterprise and governmental digital operations demanding ultra-low-latency and secure infrastructure.
This article was partially generated by AI and edited by a journalist
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