Al Moammar Information Systems (MIS) is exploring the feasibility of building three new data centers in Saudi Arabia, according to a new Memorandum of Understanding (MoU) it's signed with one of the Kingdom's publicly owned investment firms, Saudi Data Center Fund 1.

As per reporting by Al Arabiya, if built, the facilities will reside in the cities of Riyadh, Jeddah, and Dammam, with a combined compute capacity of 48MW. No details were released on the project’s possible cost. DCD has approached the firm for comment.

Saudi Data Center 1 is an investment fund acting on behalf of Saudi Fransi Capital, itself a subsidiary of the Banque Saudi Fransi established in 1977. The fund was created in 2022 in collaboration with MIS to fund the construction of six hyperscale data centers in Saudi Arabia with a total IT capacity of 24MW.

Its MoU with MIS is valid for 90 days from its commencement on July 21, 2026, though this timeframe may be extended by mutual agreement between the two organizations. If MIS and Saudi Data Center 1 agree to proceed with their venture, the former has indicated that it intends to act as the designer, developer, and manager of all three facilities.

Founded in 1979 and headquartered in the Saudi capital, Riyadh, MIS acts as an IT consultancy and managed service provider, in addition to its role as a data center operator. Its recent agreement with Saudi Data Center 1 is not its first. In 2024, MIS signed a deal with the fund to expand the latter’s data center capacity by up to 64MW, in an agreement then valued at up to SAR 2.5 billion ($666m). A year later, the IT services provider was awarded another contract by the fund to expand Saudi Arabia’s data center capacity by a further 112MW.

Saudi Arabia is one of the largest data center markets in the Middle East, hosting 61 facilities according to DataCenterMap (the United Arab Emirates, by comparison, hosts 58). One of the latest international arrivals is Zoom, which leased a data center in Saudi Arabia in June.

Learn more about the data center market in Saudi Arabia and meet with other executives and experts in the region at the DCN Riyadh event next year.