Saudi Fransi Capital (SFC) has announced the launch of what it claims is the kingdom’s first data centre fund.
The Saudi Data Center Fund 1 is a collaboration between SFC and Saudi-based IT firm Moammar Information Systems (MIS) which was first announced last year.
The fund, which has a target size of nearly $1 billion, was inspired by an US$18 billion digital infrastructure plan announced by the ministry of Communications and Information Technology to construct a number of data centres across Saudi Arabia.
The first investment from the fund will be used to build six data centres with a value of $320 million.
According to a statement, the fund will also look to target additional expansion and collaboration opportunities to grow its presence in the data centre industry.
The fund launch is another example of the Saudi authorities’ plan to boost its digital infrastructure and reduce its reliance on oil-based revenues.
In July 20231, the government announced plans to launch a $15 billion tech fund that will invest in new technology such as artificial intelligence and robotics.
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