NTT Data eyes Saudi data center projects to tap AI boom

NTT Data is considering building data centers in Saudi Arabia to capitalize on the country’s growing focus on AI.

The Japanese information technology firm, which was recently taken private by NTT Group in a US$16 billion deal, is assessing potential projects but has not made any firm commitments, CEO Abhijit Dubey said.

NTT Data already works with Saudi mega-projects like Neom and is involved in local infrastructure development.

Dubey said there is a gap between Saudi Arabia’s ambitions for AI and current data center capacity.

About 70% of NTT Data’s Middle East budget is allocated to Saudi Arabia.

🔗 Source: Bloomberg

🧠 Food for thought

Implications, context, and why it matters.

Saudi Arabia faces a large data center gap

Saudi Arabia has about 350 MW of active capacity, while nearly 2.7 GW is in the pipeline to serve AI and digital transformation demand 1.
The market could grow from about $1.9 billion in 2024 to $3.9 billion by 2030 2. That equals a 13% compound annual growth rate (CAGR) as projects like NEOM (a planned futuristic mega-city in northwest Saudi Arabia) add infrastructure needs 2.
Abundant low-cost natural gas and renewables support AI data centers 3. Saudi Aramco plans to lift gas output by over 60% by 2030 3.
Heat raises cooling load and operating costs 2. Operators will need advanced cooling and sustainable design 2.

Global vendors can win near-term Saudi data center deals

Over $6 billion in new builds is slated by 2027 for construction firms, power suppliers, and cooling vendors 1. Nearly 500 MW is due by the end of 2025 1.
NEOM holds nearly 50% of planned power capacity, which concentrates bids for specialized infrastructure firms 1.
The Saudi Data and AI Authority (SDAIA) uses the Etimad platform, the Saudi government’s e-procurement portal 4. International vendors can register to join infrastructure tenders 4.
Demand is shifting toward Tier III facilities (an Uptime Institute reliability level that supports concurrent maintenance and holds approximately 60% market share) 2. Hyperscale sites in Riyadh plus Jeddah are very large facilities for cloud and AI workloads 2.