Quantum Switch Tamasuk Explores Sale of Saudi Data Center Business, Potential Value Exceeds $500 Million
March 6, 2026
Quantum Switch Tamasuk (QST), a significant data center developer in the Middle East, is considering a strategic sale of its Saudi Arabian operations, a move that highlights the intense investor interest in the Gulf's rapidly digitalizing infrastructure market. According to a Reuters report citing sources familiar with the matter, the potential transaction could value the business at over $500 million.
The company has reportedly appointed investment bank Rothschild to advise on the process. Sources indicate that discussions are in early stages, and QST has not yet made a final decision on whether to proceed with a sale or pursue other strategic alternatives. Rothschild declined to comment on the report.
QST's Saudi business represents a key asset in the region. The company identifies the kingdom as its "most active current location" in the Gulf. Its footprint includes a major 2022 agreement with the Saudi government to develop 300 megawatts (MW) of data center capacity over five years, aimed at attracting hyperscale cloud providers and hosting public sector data. Its operational assets consist of two facilities in the industrial port city of Dammam, each with a capacity of 9MW. These sites, named DMM A and DMM B, have further expansion potential of 18MW and 6MW, respectively.
The potential divestiture is already drawing attention from international private equity firms active in the region, the sources noted. A successful sale would likely intensify global private equity focus on the Gulf, particularly as investors seek exposure to infrastructure supporting the burgeoning artificial intelligence (AI) ecosystem. This interest follows recent consolidation in the sector, exemplified by the January acquisition of two QST-leased facilities in Qatar by Syntys, the data center subsidiary of telecom operator Ooredoo.
The backdrop for this potential deal is Saudi Arabia's aggressive push under its 'Vision 2030' initiative to diversify its economy away from oil and accelerate digital transformation. Analysts at S&P Global estimate that data center megawatt load in the kingdom will grow by approximately 29% annually until 2030. This growth is being fueled by large-scale projects, including developments spearheaded by the Hub for Manufacturing AI in Neom (Humain), which has announced plans for a 500MW facility with Elon Musk's xAI and a 1-gigawatt (GW) capacity build with Saudi Telecom Company.
QST did not respond to requests for comment regarding the sale report.
Source: datacenterdynamics
