ARTIFEX NEWS

Desert Technologies and CTS Group Form AI Data Center Venture in Saudi Arabia

· Construction
StatusConfirmed by SaudiGulf Projects.

Saudi Arabia's Desert Technologies (DT) and Switzerland's CTS Group have entered into a joint venture to create CTS-DT, a new company dedicated to developing advanced AI data center infrastructure in Saudi Arabia. The joint venture aims to initially achieve an annual capacity of 300 MW, with plans to scale up to 1.2 GW per year. The focus will be on designing, developing, constructing, and manufacturing data center solutions optimized for AI and high-performance computing applications. The financial terms of the venture have not been disclosed. CTS-DT will establish an industrial and technology platform in Saudi Arabia to meet the growing demand for AI computing and digital infrastructure. The company plans to expand into Middle Eastern and African markets using Saudi Arabia as a base. The joint venture will also contribute to the localization of data center technologies and advanced manufacturing capabilities in Saudi Arabia, developing national expertise in engineering and other technologies supporting the digital economy. The agreement was signed in Riyadh during LEAP 2026, a global technology event. Khalid Ahmed Sharbatly, CEO of Desert Technologies, and Philippe Schelfhout, CEO of CTS Group, signed the agreement, emphasizing the partnership's role in supporting Saudi Vision 2030 and the digital economy.

Why this mattersThis venture is significant for Madinah as it may lead to increased demand for local expertise in engineering and digital infrastructure, potentially opening opportunities for local firms in the architecture and development sectors. The focus on AI and high-performance computing aligns with global trends, making it a strategic area for future investments and partnerships.
Key figures300 MW initial capacity · scalable to 1.2 GW per year
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