Building Capacity for V2030

Saudi Arabia has taken a significant step towards becoming a global leader in AI and technology by joining a $40 billion fund. This partnership aims to position the Kingdom at the forefront of AI development. Moreover, Nvidia CEO Jensen Huang recently likened data centers to AI factories, where inputting data and electricity results in valuable data tokens.

Given the Kingdom's aspiration to serve as a digital hub connecting Asia, Africa, and Europe, I am pleased to share insights from Mohammed Mansour Al-Rumaih (MMR KSA) , a veteran infrastructure and data center expert in the Saudi market since 1982, in this video interview.

I attended a community event in Riyadh organized by MMR with Vertiv Uptime Institute Leviton and other prominent companies in the Saudi data center sector.

Rami Badaoui Najjar , General Manager of Data Centers at MMR KSA for 19 years, highlighted that the Saudi market is influenced by Vision 2030. Mr. Najjar predicts a demand for 1-1.2GW of IT load within the next six years to fulfill the Vision 2030 goals.

Investments are expected to increase to expand the data center capacity from the current 200-220 MW to 1.2-1.3 GW by 2030. Local companies will primarily be involved, in collaboration with hyperscalers.

DataVolt , a Saudi-based company, revealed an impressive 300MW capacity during the LEAP event, committing $5 billion to advance the development of next-generation data centers.

Wesam Abu Nada has been a part of MMR for 17 years and witnessed competitors entering the market 15 years ago. Currently, there are 20 companies in the industry. His attention is on banking and insurance firms, which have been pivotal in the growth of the data center sector over the past five years. He recounted a case in 2022 involving a bank where the digital infrastructure alone, excluding IT costs, amounted to SR150M.

MMR insights and trends

-?????? The AI opportunity emerged from an oil & gas project last year, and this trend is becoming more prominent. We are only beginning to witness the rise in demand for AI, and we can expect a significant increase in AI needs within the next two years.

-?????? The government is actively promoting sustainability efforts. Estedama Environmental Solution and ????? | TARSHID are collaborating on circularity and increasing awareness to minimize carbon footprint. They are integrating sustainability into the initial design phase of data centers and opting for more efficient materials.

-?????? The upcoming trend in Saudi Arabia involves green data centers and artificial intelligence (AI).

Both MMR experts advise investors to venture into Saudi Arabia, establish data centers, adjust to the market, familiarize themselves with local customs, and immerse themselves in the experience.

View the complete interview here.

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