Al Moammar Information Systems Signs MoU to Explore Three New Data Centers in Saudi Arabia

Al Moammar Information Systems (MIS), a Saudi IT consultancy and managed service provider, has signed a Memorandum of Understanding (MoU) with Saudi Data Center Fund 1 to explore the feasibility of developing three new data centers across the Kingdom. The agreement, reported by Al Arabiya, targets the cities of Riyadh, Jeddah, and Dammam, with a combined compute capacity of 48MW. Financial details regarding the potential investment were not disclosed, and DCD has reached out to the company for further comment.

The move underscores Saudi Arabia's accelerating push to expand its digital infrastructure as part of broader economic diversification efforts. The Kingdom has emerged as one of the largest data center markets in the Middle East, currently hosting 61 facilities according to DataCenterMap, compared to 58 in the United Arab Emirates. This latest initiative would further bolster national capacity and support the growing demand for cloud services, artificial intelligence workloads, and enterprise digital transformation.

Saudi Data Center Fund 1 is an investment vehicle managed on behalf of Saudi Fransi Capital, a subsidiary of Banque Saudi Fransi established in 1977. The fund was created in 2022 in collaboration with MIS to finance the construction of six hyperscale data centers with a total IT capacity of 24MW. The current MoU is valid for 90 days from its commencement on July 21, 2026, with an option for extension by mutual agreement. Should the two parties proceed, MIS has indicated it intends to serve as the designer, developer, and manager of all three facilities.

This agreement is not the first between MIS and Saudi Data Center Fund 1. In 2024, MIS signed a deal with the fund to expand its data center capacity by up to 64MW, in an agreement valued at up to SAR 2.5 billion (approximately $666 million). A year later, the IT services provider was awarded another contract to add a further 112MW of capacity. Together, these projects reflect a sustained partnership aimed at scaling the Kingdom’s data center footprint to meet escalating regional demand.

Founded in 1979 and headquartered in Riyadh, MIS operates as both an IT consultancy and a data center operator. Its deepening involvement in large-scale infrastructure projects positions it as a key domestic player in Saudi Arabia’s digital economy. Industry observers note that the planned facilities in Riyadh, Jeddah, and Dammam would not only enhance geographic redundancy but also support the government’s Vision 2030 objectives of building a robust, technology-driven economy. With international entrants like Zoom recently leasing data center capacity in the Kingdom, the market is attracting growing global attention, making domestic capacity expansion increasingly critical.