UAE-based firm Taranis Capital has signed a memorandum of understanding agreement with Saudi Arabia’s Emaar Executive Company to build several data centre facilities in the kingdom.

According to a statement, the firms plan to develop, construct and operate a portfolio of data centre facilities, each with a capacity of 40-50MW.

Emaar Executive Company will provide engineering, procurement and construction (EPC) capabilities, alongside its design and operations expertise.

Saudi Arabia and the UAE are leading the market expansion of data centres through hyperscale campuses, sovereign cloud initiatives and edge data centre deployments.

Data centres have become foundational infrastructure across the region, underpinning national digital economies and enabling cloud computing, artificial intelligence (AI) workloads, smart cities, e-government platforms, fintech and cybersecurity resilience.

Governments and enterprises are accelerating investment as data localisation requirements and power-intensive AI applications drive sustained demand for capacity.

Data centre development is closely aligned with national strategies such as Saudi Arabia’s Vision 2030, the UAE’s digital economy and AI roadmaps, and wider smart city programmes across the GCC.

These agendas are translating into long-term demand for high-capacity, energy-efficient and resilient data centre infrastructure.

Priorities include hyperscale and colocation facilities to support cloud service providers; edge data centres to reduce latency and enable 5G and IoT use cases; energy-efficient designs using advanced cooling, modular construction and renewables; and strategic partnerships between global hyperscalers, local developers and utilities.