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The Ministry of Municipalities and Housing adopted new municipal regulations for commercial data centers on Thursday, outlining requirements for their establishment, licensing and operation as part of efforts to strengthen the kingdom’s digital infrastructure. A statement from the ministry described the framework as creating a clear regulatory environment that facilitates investment while ensuring compliance with technical and safety standards across the sector. The regulations take effect immediately upon publication and cover independent facilities whether situated inside or outside designated urban boundaries.
These rules mandate that data center sites provide straightforward access for operations and maintenance crews, the ministry’s document specified. Locations must also feature reliable supplies of core utilities such as electricity, telecommunications and transportation networks to support continuous functioning. Approved building standards apply fully, including provisions for parking, setbacks, maximum heights and required landscaping around each facility.
Licensing hinges on securing prior approval from the civil defense authority before any permit can be issued, according to the ministry’s conditions. Applicants are required to present a current commercial register that encompasses the precise activity under license together with endorsement from the overseeing government entity. All procedures for new licenses, renewals, modifications, suspensions or cancellations fall under the existing municipal licensing system and its implementing bylaws.
The regulations compel operators to fully implement the Saudi Building Code with design and on-site supervision assigned solely to accredited engineering consultancies, the ministry stated. Facilities must additionally observe applicable local and international benchmarks covering fire safety, cooling mechanisms, electrical systems and redundancy arrangements to guarantee performance and resilience. The ministry urged all investors and interested parties to review the complete text and maintain adherence to its organizational, technical and operational provisions.
Saudi Arabia’s data center capacity has grown sixfold since the 2016 launch of Vision 2030, with investments exceeding 16 billion riyals and more than 60 operational sites developed by over 20 companies, the Ministry of Communications and Information Technology reported. Market revenue from data centers is projected to reach 2.83 billion dollars by 2030, expanding at an annual rate of 6.45 percent. A separate industry assessment placed the Saudi data center market at 2.11 billion dollars in 2025 with forecasts of growth to 3.9 billion dollars by 2030 at a compound annual rate of 13.07 percent.
Government spending on emerging technologies rose by more than 56 percent in 2024 while artificial intelligence firms attracted 9.1 billion dollars in funding during the same period, ministry figures show. Plans under the Humain initiative include building 1.8 gigawatts of data center capacity by 2030 to underpin national artificial intelligence ambitions. These regulatory updates arrive as the kingdom positions itself as a regional technology hub with data centers serving as the foundation for e-government services, cloud computing and digital commerce.
