Pure Data Centres (Pure DC) has formed a joint venture with Dune Vaults to develop data center campuses in Saudi Arabia.

The JV aims to create hyperscale campuses with more than 100MW of IT capacity with "best in class" facilities.

Riyadh saudi arabia
Riyadh, Saudi Arabia – Getty Images

The companies aim for the JV to become one of the largest data center providers in the region to meet increasing demand.

Pure DC's expansion into Saudi Arabia is hoped to help the company meet demand from its global customer base for secure, low-latency connections for real-time applications and services, and to support artificial intelligence (AI) technology.

The JV will also enable Dune Vaults to diversify its portfolio.

Faisal AlRahbiny, founder and MD of Dune Vaults, said: “We are dedicated to establishing over 1GW of sustainable data center capacity in Saudi Arabia, aligning with market demand estimates and supporting the Kingdom’s Vision 2030 digital transformation goals. Through our strategic partnership with Pure DC, we are bringing advanced data center solutions to meet the needs of global hyperscalers whose presence in the Kingdom will accelerate digitization and economic growth."

Dame Dawn Childs, CEO of Pure DC, added: “Data centers are the engines for innovation. In Dune Vaults we have a partner that matches our ambition for solving the challenges of the future and the expertise to support our expansion in one of the fastest-growing markets for data capacity.”

Pure DC currently has more than 500MW of IT capacity live or under development across the UK, Europe, the Middle East, and Asia. The company purchased land in Madrid, Spain, earlier this year for its first foray into the Spanish market.

The company was established in 2015 and is backed by funds managed by Oaktree Capital Management.

Dune Vaults is a Saudi Arabian digital infrastructure platform that is working towards the Kingdom’s National Transformation Program and Vision 2030. The company, backed by "prominent Saudi investors," sources, structures, and manages high-value real estate and digital assets.

Saudi Arabia has a fast-growing data center market.

Earlier this month, reports emerged that Oxagon was in talks to construct a 1GW AI data center in the Kingdom.

The Kingdom is also home to the US hyperscalers, with the likes of Google, Microsoft, and Oracle having cloud regions in operations. Oracle also launched a second cloud region in Saudi Arabia in August of this year.

Amazon Web Services committed to launching a region in Saudi Arabia in March 2024, with $5.3bn in investment.