- STC and Humain have signed an MoU to jointly develop up to 1GW of data centre capacity in Saudi Arabia
- The agreement highlights Saudi Arabia’s ambitions to become a regional digital infrastructure hub, while raising questions about scale, demand and governance
What happened: A major capacity ambition takes shape
Saudi Telecom Company (STC) has signed a memorandum of understanding with data centre developer Humain to collaborate on the development of up to 1GW of data centre capacity across Saudi Arabia. According to the report by Data Center Dynamics, the agreement sets out a framework for joint development, with STC contributing connectivity, digital infrastructure and operational expertise, while Humain focuses on large-scale data centre design and delivery.
The proposed developments are expected to support hyperscale, cloud and enterprise workloads, aligning with growing domestic demand for digital services. While no construction timelines or specific sites were confirmed, the MoU signals intent rather than a binding investment commitment, leaving key details such as phasing, funding structures and customer allocation still to be clarified.
STC has positioned the partnership as part of its broader strategy to expand beyond traditional telecommunications into cloud computing, data centres and digital services. The operator already runs a portfolio of data centres within the Kingdom and has previously highlighted the importance of edge and core facilities to support 5G, artificial intelligence and cloud adoption.
Humain, meanwhile, is emerging as one of several developers seeking to capitalise on Saudi Arabia’s rapid push into large-scale digital infrastructure, driven by both government-backed initiatives and private sector demand.
Also read: STC Group and AWS drive Saudi digital transformation
Also read: STC ups ante: Raises Telefonica stake to 9.9%
Why it’s important
A target of 1GW places this potential build-out among the largest data centre programmes announced in the Middle East, reflecting Saudi Arabia’s ambition to position itself as a regional digital hub. The Kingdom has prioritised digital transformation as part of Vision 2030, with data centres seen as critical to supporting cloud services, AI workloads and data localisation requirements.
However, the sheer scale of the proposed capacity also raises questions about timing and utilisation. Globally, data centre markets are grappling with power constraints, grid readiness and concerns about overcapacity in some regions. Saudi Arabia’s abundant energy resources offer advantages, but long-term sustainability, water usage and carbon impact remain under scrutiny.
The partnership also underscores the increasing role of incumbent telecom operators in shaping data centre ecosystems. While this integration can accelerate deployment and improve connectivity, it may also concentrate control over critical digital infrastructure. Observers note that clear governance, transparent access models and competitive neutrality will be essential to ensure that such large projects benefit the wider digital economy rather than entrenching dominant positions.
As with many MoUs in the region, the agreement’s success will ultimately depend on execution. Whether the full 1GW materialises, and how quickly, will offer a clearer indication of how Saudi Arabia’s data centre ambitions translate from strategy into operational reality.
